MyKad to play central role in targeted RON95 subsidy implementation, says Amir Hamzah

KUALA LUMPUR: A two-tier system involving the use of MyKad is likely to be adopted when the targeted RON95 subsidy is implemented this June, says Datuk Seri Amir Hamzah Azizan.

While the Finance Minister II did not want to divulge details about the mechanism, he hinted that the MyKad may be used by those eligible for the targeted RON95 subsidy.

“The mechanism is being fine-tuned, and we do not want to make any announcement while work is still being done.

“More importantly, we want to make sure that the system is robust,” he told reporters at a press conference after launching the new open payment system for the Rapid KL On-Demand (DRT) at the KL-Rapid Depot in Cheras on Thursday (March 27).

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He said that a two-tier pricing system involving a subsidised price for RON95 and a non-subsidised price would be used.

“About 85% of the rakyat will get the subsidised petrol prices and this is what is meant by targeted subsidy for the nation,” he added.

He said that the use of the MyKad, which is currently being used by some 700,000 Sumbangan Asas Rahmah (Sara) recipients, would be involved.

“Some 700,000 recipients of the RM2,100 aid are already using their MyKad to purchase sundry goods at some 3,500 shops and supermarkets in the country.

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“Come next week, the number of Sara recipients using their MyKads will increase to 5.4 million.

“If 5.4 million recipients can use their Mykad at more than 3,500 shops and supermarkets, what is the difference if the MyKad is used for RON95?” he said.

In a statement Wednesday (March 26), the Finance Ministry said that 5.4 million Sara recipients will receive aid via the MyKad beginning April 1, a significant increase from the current 700,000 beneficiaries.

The expansion is part of the increased allocation for the Sumbangan Tunai Rahmah (STR) and Sara programmes, which amount to RM13bil this year—the highest in the nation’s history for cash aid distribution.

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Starting this year, Sara aid would be distributed via MyKad in Sabah, Sarawak and the Federal Territory of Labuan.

Previously, it was limited to Peninsular Malaysia in 2024.

Under the Sara programme, recipients can use their MyKad to purchase selected essential goods at over 3,500 registered retail stores nationwide, a substantial increase from the 700 stores available in 2024.

Sara credits can be used to buy basic food items, personal hygiene products, medicines, and school supplies.