The government has said it is considering using MyKad (ID card or IC) as well as e-wallets as a means of making targeted subsidies when the RON 95 gasoline rationalization program will take place in the middle of next year.

To know the opportunity to use them as disbursement termsthe government said it conducted a 20-month pilot project two years ago to test the use of MyKad and e-wallets, the Malaysian mail reports. According to Economy Minister Rafizi Ramli, this was done to verify their feasibility.

“A pilot project was carried out between 2022 and 2023, using ID cards and e-wallets at selected gas stations. So this has already been tested. In terms of back-end eligibility verification, the Central Database Hub (PADU) has been operational and applied in several use cases,” he said in the Dewan Rakyat.

Rafizi revealed this in his response to a supplementary question from Kuala Krau MP Kamal Ashaari, who asked whether the government had tested the implementation and was not using an “announce first, research later” approach. “The principle ‘announce first, research later’ came only from the opposition,” Rafizi said.

The possibility of using a two-tier price mechanism was also brought up again when Rafizi responded to a question from Pulai MP Suhaizan Kayat, who asked for details on the mechanism of using ID cards to verify eligibility for the 95 RON grant.

“In general, the first part, determining eligibility, is developed by the Ministry of Economy, while the second part, implementing the two-tier pricing mechanism for purchases at RON 95 at gas stations , is managed by the Ministry of Finance,” Rafizi explained.

He added that the Ministries of Economy and Finance are currently reviewing and refining the detailed mechanism for implementing the subsidy. “The final criteria and mechanisms will be presented to the Cabinet, in line with the implementation timetable, planned for mid-2025,” he added.

He said the government recognizes the challenges in implementing the project. “These include infrastructure issues, particularly slow internet access in rural areas and damaged ID card chips, identity verification risks and possible misuse of cards identity,” he explained.

Rafizi said there is no perfect method to implement the fuel subsidy system, but the government will choose the best one that will not result in a drastic increase in prices of goods. “More importantly, the government will emphasize efforts to control prices of goods and inflation,” he said.

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Learn more: RON95 fuel subsidy