The Malaysian government has recorded savings of RM800 million since the implementation of the Budi Madani RON95 (BUDI95) program began on September 30, according to Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Minister of Finance, explained that these savings were achieved through more precise targeting of fuel subsidies, ensuring that only Malaysian citizens are eligible to enjoy the subsidy. This measure has successfully curbed leakages that previously involved more than 3.5 million foreigners as well as the smuggling of tens of thousands of liters of fuel abroad.
“Every saving from this program will be returned to the people through the Rahmah Cash Contribution (STR) and Rahmah Basic Contribution (SARA). In addition, the funds will also be used to upgrade health facilities such as clinics and hospitals, improve roads and strengthen the country's infrastructure,” he said in a post on Facebook today.
He added that this fuel subsidy targeting effort had been discussed for over 20 years by previous governments, but no party had the courage and political will to implement it until the MADANI government took the initiative to implement BUDI95.
Under the BUDI95 program, all Malaysian MyKad holders aged 16 and above with an active driving license are eligible to purchase subsidized RON95 up to 300 liters per month at a price of RM1.99 per liter, compared to the market price of RM2.60 per liter without subsidy.
