24/10/2025

FRIDAY | OCT 24, 2025

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Unusually high fuel usage to be flagged

Subsidy reforms paying off

receiving it for life.” Another user, @nabale96, pointed out: “Everything is system-based and linked to the MyKad. This should be easy to trace.” Across platforms, calls are growing for tougher enforcement and tighter oversight of subsidy distribution. Many users argued that the government’s data transparency should now translate into visible action against offenders. – By QIRANA NABILLA MOHD RASHIDI PETALING JAYA: Efforts to curb fuel subsidy leakages could help ease Malaysia’s fiscal pressure, freeing up as much as RM2.5 billion – about 31% of the RON95 subsidy bill – for essential sectors such as healthcare, education and social aid. Economist Dr Mohamad Idham Md Razak said the move reflects the government’s drive to improve spending efficiency and ensure subsidies are directed to those who genuinely need assistance. “The RM2.5 billion in potential savings is fiscally meaningful, given that the government spent RM393.8 billion in 2023, with RON95 subsidies alone costing between RM8 billion and RM10 billion. “Although the savings are not enough to balance the budget, they could help narrow the fiscal deficit, which stood at 5.6% of GDP in 2023 and free up funds for public welfare initiatives and development priorities.” He added that data shows the system is achieving its goal of targeted and efficient subsidy management. “Since the system caps subsidised fuel at 300 litres per vehicle per month for most users – with higher limits only for verified groups – it effectively excludes high-volume commercial or abusive users while protecting ordinary citizens. “The sharp drop in excessive consumption suggests the policy is successfully redirecting subsidies to intended beneficiaries.” Mohamad Idham emphasised the need to sustain the reform momentum without burdening lower-income households, urging the government to strengthen complementary social protection measures. “Regular reviews of subsidy limits and transparent communication on how savings are reinvested into social programmes would also help sustain public trust and support.” Mohamad Idham said the government could also consider: 0 Integrating Budi Madani with national databases such as the Road Transport Department (RTD) (vehicle ownership), IRB (income) and MyKad (identity) for automatic eligibility verification; 0 Introducing income-based subsidy tiers – full subsidy for B40, partial for M40 and none for T20; 0 Using AI technology to detect abnormal refuelling patterns, such as multiple fill-ups in different states within hours; and 0 Tightening enforcement by increasing penalties for fuel smuggling and strengthening controls at border stations. He also cautioned policymakers to watch for risks such as black markets, cross-border smuggling and identity fraud. – By QIRANA NABILLA MOHD RASHIDI

o Budi95 system quickly detects irregular consumption, sealing loopholes for smugglers, proxy users: Fomca

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PETALING JAYA: Overshoot the 300-litre limit and you will be on the radar – Budi Madani’s (Budi95) tracking system has begun flagging unusual users within weeks of implementation. Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr Saravanan Thambirajah stressed that the Budi95 framework was never meant to police consumers, but to protect public trust and ensure billions in fuel subsidies reach those who truly need them. He said the system’s data-driven design allows authorities to detect irregular consumption patterns within days, not months – meaning users who rapidly exhaust their quota will automatically be flagged for review. “This level of oversight is what makes the programme effective. It closes loopholes that once enabled cross-border smuggling, proxy purchases and misuse by commercial entities hiding behind private accounts. “Fomca reminds consumers that the 300-litre monthly quota is more than sufficient for regular household use. Every act of dishonesty, no matter how small, undermines the fairness of the subsidy and risks triggering tighter restrictions that inconvenience genuine motorists.” Saravanan urged the public to treat Budi95 as a shared responsibility, noting that wise and transparent use of entitlements keeps the system sustainable, fair and trustworthy. He said responsible behaviour ensures that the government can continue supporting low and middle-income groups without unnecessary fiscal strain. He also said government data shows the average Malaysian motorist consumes significantly less than 300 litres per month – typically between 120 and 180 litres – proving that the cap is generous enough for ordinary users while exposing irregular usage. “This means that when certain profiles or regions hit the quota early, those anomalies can be flagged and verified. “The system’s transparency and traceability not only curb leakages but also ensure that subsidies reach their intended beneficiaries – genuine domestic users rather than commercial resellers or cross-border smugglers. “Enforcement should be firm yet fair, using tools such as geo-analytics, cross-agency cooperation and education to verify anomalies first, ensuring genuine users aren’t unfairly penalised while preventing misuse.” Road safety and sustainable transport activist Shahrim Tamrin said the system not only helps curb subsidy misuse but also provides valuable

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manage consumption and stay within the 300-litre limit. He added that the system enables the government to identify potential leakage hotspots, especially near border areas and to act swiftly by halting fuel supply to users suspected of misuse. He also said Budi95 highlights which petrol stations are frequently linked to suspicious activity, allowing for more targeted monitoring and enforcement.

insights into travel behaviour, identifying high-risk areas and promoting more responsible vehicle use. “It shows that data is a powerful tool, helping authorities plan and curb subsidy leakages more effectively. “The government can observe usage patterns, such as peak periods and frequent refuelling points for specific users or vehicles.” He said Budi95 also encourages motorists to be more mindful of their travel needs, helping them

Alleged petrol misuse sparks uproar online PUTRAJAYA: Riding a motorcycle but burning through 300 litres of petrol in two weeks? Malaysians online are not buying it and many suspect that the fuel meant for locals is instead crossing the border. disbelief and suspicion. User @PotatoGamerXxXx suggested the government’s decision to release the data publicly was a warning before stricter action: “The fact that they’re telling this data to the public means they’re warning people to stop doing it. The government is trying to be as nice as possible before bringing the hammer down.” The debate ignited after authorities revealed data showing some Budi95 recipients, registered as motorcycle users, had depleted their full monthly fuel quota within days. On Reddit, users were quick to voice Another user, @Mavicarus, claimed that the fuel sold in southern Thailand

approach. @Dreamin_Snow joked about the unrealistic mileage implied by the data: 500km? Where do they work? Sumatra?” On X (formerly Twitter), @fadzioriq echoed the scepticism: “Riding a motorcycle but finishing 300 litres in two weeks? Very suspicious, especially living near the border.” Meanwhile, @K0g579 called for firm penalties: “Those found misusing the subsidy should be banned from

might be linked to such abuse: “If you travel around southern Thailand, you’ll see roadside stalls selling petrol in small bottles. Where do they get it? From these people.” User @indahkiat admitted to having misjudged the government’s MyKad linked fuel system but now sees its purpose:“I was one of those complaining about how troublesome this thing was. It was for surveillance all along.” Others took a more humorous