Protecting Malaysia’s Fuel Subsidy: Ensuring It Benefits the Rakyat, Not Abusers
Come October 1st, Malaysians will enjoy subsidized petrol (RON95) at RM1.99 per litre by simply presenting their NRIC. Those without an NRIC, or non-Malaysians, will pay the market rate of RM2.60 or higher. On paper, the plan is straightforward — but for it to succeed, the government must ensure that this subsidy does not leak, is not abused, and genuinely benefits the rakyat it is intended for. The starting point lies in smart integration. Every Malaysian NRIC should be tied to the national tax system (LHDN/Hasil). This does not mean that everyone must pay tax — students, retirees, and low-income earners may fall under exemption — but it does mean that every NRIC must be registered, verified, and visible in the system. By syncing JPN (National Registration Department) and LHDN, the government can create a whitelist of Malaysians who qualify for subsidized fuel. Those who have not filed their taxes, whether exempted or otherwise, should be flagged until their records are up...