Budi Madani is a government initiative that provides targeted subsidy allocations for private vehicle owners (Budi Individu) and small-scale farmers and growers (Budi Agri-Komoditi).

Approximately 300,000 diesel vehicle owners in Peninsular Malaysia qualify for Budi Individu while nearly 400,000 small-scale farmers and growers are eligible to benefit from Budi Agri-Komoditi.

In a statement, the finance ministry said a total of 30,000 applicants received their initial cash assistance of RM200, which was deposited into their bank accounts, on June 10, while another 46,000 recipients received their payments today.

Second finance minister Amir Hamzah Azizan urged eligible Malaysians to immediately register for the programme, adding that those who applied before the end of this month would receive their payments early next month.

“The government is committed to disbursing Budi Madani cash aid from the month applications are submitted,” he said in the statement.

“The objective of targeted diesel subsidies is to focus the government’s assistance on eligible sectors and the most deserving groups within the community.”

Those without bank accounts can claim the subsidy in cash by presenting their MyKad at any Bank Simpanan Nasional branch across Peninsular Malaysia.

The government lifted the diesel subsidy in Peninsular Malaysia on June 3, with diesel prices rising from RM2.15 to RM3.35 per litre.

The rates are to be reviewed every week.

According to finance ministry figures, consumption of subsidised diesel increased sharply from 6.1 billion litres in 2019 to 10.8 billion litres in 2023, even though the number of diesel vehicles did not increase significantly.

As a result, diesel subsidies rose tenfold from RM1.4 billion in 2019 to more than RM14.3 billion in 2023.