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PETALING JAYA: Malaysians are adapting well to the newly implemented Budi95 targeted fuel subsidy system, with most consumers expressing satisfaction with it, said the Federation of Malaysian Consumers Associations (Fomca).
Its CEO Saravanan Thambirajah said feedback from motorists after a month have been largely positive.
“The overall response to Budi95 has been encouraging.
Consumers are adjusting to the new quota system and the MyKad-based verification process is functioning smoothly in most cases.”
Introduced to replace blanket fuel subsidies, Budi95 ensures that assistance reaches those who truly need it while curbing smuggling and misuse.
“Most Malaysians now display greater awareness of their fuel usage.
Many are planning travel more efficiently, and the quota has proven sufficient for personal and family needs for the vast majority.”
Saravanan said Fomca strongly recommends retaining the 300-litre limit, which balances fairness, predictability and fiscal responsibility.
He also pointed out the broader economic benefits of providing the subsidy.
“Budi95 is more than just a subsidy mechanism, it is a form of market stimulus.
By easing fuel costs, it promotes spending at local businesses and strengthens local economies.
“Reducing household fuel expenditure indirectly boosts disposable income, allowing consumers to spend on other essential items.
“This increase in consumer spending helps local businesses and stimulates the domestic economy, creating a positive ripple effect in communities.”
Saravanan said the MyKad verification system, which allows fuel stations to identify eligible users, has generally performed well, with only a few isolated technical glitches reported.
“There have been minor issues such as failed scans or temporary downtime at certain stations but these were minimal and quickly resolved.”
He said the system strikes a balance between convenience and accountability.
He emphasised that continuous monitoring and prompt technical support for petrol operators are crucial to ensure smooth operations nationwide.
Some questions have arisen regarding jointly used vehicles in households, particularly when only one member qualifies for the subsidy.
Saravanan said while such cases are not widespread, clear and consistent communication remains vital.
“Public awareness has improved over the past few weeks but outreach is essential, especially in rural and suburban areas.
“Not all consumers are comfortable with digital platforms, so community briefings, radio programmes and printed materials in multiple languages could help.”
He said concerns had also been raised that certain groups such as gig workers, informal earners or small traders face challenges accessing the subsidy.
Saravanan said while Fomca does not have sufficient data yet to confirm such cases, evidence-based policy adjustments are important.
“Collaborating with e-hailing associations, logistics companies and small business networks would help identify real usage trends.
If certain sectors require more support, appropriate adjustments could be made without compromising the integrity of the system.”
Saravanan offered several recommendations to enhance the efficiency of the Budi95 system, including expanding digital integration through more e-wallets and improving public awareness.
