He said such a move would change the original objective of BUDI95 and could undermine the effectiveness of the targeted subsidy for groups that rely on internal combustion engine vehicles, Bernama reported.
“The primary objective of BUDI95 is to shift from a blanket subsidy to a targeted one, to ensure that fuel assistance continues to be channelled to those who truly need it or depend on it and use it for daily necessities,” he told the Dewan Negara today.
He was responding to a supplementary question from Senator Dr RA Lingeshwaran on the effectiveness of the 600-litre quota under BUDI95 in encouraging drivers to transition to EVs or hybrid vehicles.
Amir Hamzah was also asked whether the government would provide cash rebates as an alternative to subsidies for drivers who choose environmentally friendly vehicles as a long-term incentive.
He said the BUDI95 scheme was not intended to encourage a transition to EVs or hybrid vehicles. He said its effectiveness was measured by its ability to reduce leakage, protect target groups, and maintain implementation stability from a user-experience perspective.
He added that efforts to encourage the adoption of EVs and hybrid vehicles were addressed through separate frameworks and initiatives, including the development of charging infrastructure and the implementation of the National Automotive Policy.
“This approach is important to ensure that each policy achieves its objectives without conflicting with one another,” he said.
Earlier, Amir Hamzah said that more than 106,000 drivers, or 65% of about 164,000 registered e-hailing drivers, were eligible to receive fuel subsidies under the BUDI95 scheme at a rate of at least 600 litres to 800 litres based on December 2025 data.
He said the monthly travel distance of each e-hailing driver was determined based on the consolidation of trip data from all e-hailing operators (EHOs), cross-checked against figures from the Land Public Transport Agency (Apad) and the Commercial Vehicle Licensing Board (LPKP) in Sabah and Sarawak.
Amir Hamzah said to prevent subsidy leakages to inactive or unauthorised drivers, all EHOs were required to submit accurate, complete and verified trip records to Apad and LPKP at the beginning of each month.
“Drivers who do not record the minimum travel activity based on the stipulated travel distance in the previous month will not automatically receive additional eligibility,” he said.