While praising as “admirable” the intent behind the system, Fomca CEO Saravanan Thambirajah said linking subsidies directly with registered owners of vehicles, and possibly integrating the system with MySejahtera or other national digital platforms, could reduce fraud and streamline the process.
Saravanan echoed former Umno man Shahril Hamdan’s opinion, expressed recently in the Keluar Sekejap podcast, that an IC verification system would be prone to abuse.
“There is a genuine risk of people misusing ICs belonging to others to obtain subsidised fuel. This opens the door to fraudulent activities and exploitation, potentially undermining the policy’s objective,” he said.
Economist Rajah Rasiah from Universiti Malaya agreed, saying crooked purchasers would be able to sell the petrol at market prices to foreigners and those in the top 15% income bracket (T15).
“They can also do so at higher prices to smugglers, as consumers in Indonesia and Thailand face a goods and services tax.
“MyKad holders can also fill vehicles belonging to the ineligible for a fee, a practice that can happen on a regular basis. The T15 can also use their drivers (from lower income bracket groups) to do this on a regular basis,” he said.
Saravanan said using ICs for verification might also create significant bottlenecks, leading to delays, particularly during peak hours, and increasing frustration for both consumers and petrol station operators.
“Additionally, asking petrol station attendants to verify ICs may not be practical or efficient, especially at busy or rural locations,” he told FMT.
On Oct 18, transport minister Loke Siew Fook said one of the proposals being discussed for the RON95 targeted subsidy programme was for Malaysians to produce their MyKad at petrol stations to verify eligibility before paying the subsidised price.
He said this meant there would be two pricing mechanisms – for subsidy eligible Malaysians, and for those in the T15 and foreigners.
Economy minister Rafizi Ramli said this system would see only T15 Malaysians paying the market price for petrol, but he also gave his assurance it would not be solely based on household income levels.
Saravanan also called for transparency in the programme’s implementation, saying clear communication would be necessary to ensure consumers understood the eligibility criteria.
“A transparent process is essential to avoid confusion and backlash from consumers who feel unfairly excluded,” he said.