Malaysia’s BUDI95 fuel subsidy will not be replaced with EV rebates, says minister, as its goal is targeted aid, not encouraging vehicle transition
KUALA LUMPUR: The government has no plans to replace the BUDI95 fuel subsidy with cash rebates to encourage a shift to electric or hybrid vehicles.
Finance Minister II Datuk Seri Amir Hamzah Azizan said such a move would alter the scheme’s original objective and potentially undermine its effectiveness for target groups.
“The primary objective of BUDI95 is to shift from a blanket subsidy to a targeted one,” he said during the Dewan Negara’s oral question-and-answer session.
He was responding to a question on whether cash rebates could be offered as an alternative long-term incentive for drivers choosing eco-friendly vehicles.
Amir Hamzah stated the scheme is not intended to encourage a transition to electric or hybrid vehicles.
Its effectiveness is measured by its ability to reduce leakages, protect target groups, and maintain implementation stability.
Efforts to encourage electric and hybrid vehicle adoption are addressed through separate frameworks and initiatives.
These include the development of charging infrastructure and the implementation of the National Automotive Policy.
“This approach is important to ensure that each policy achieves its respective objectives without conflicting with one another,” he said.
Earlier, Amir Hamzah said over 106,000 e-hailing drivers are eligible for the BUDI95 subsidy based on December 2025 data.
The monthly travel distance for each driver is determined from consolidated trip data from all e-hailing operators.
Data verification is carried out by the Land Public Transport Agency and the Commercial Vehicle Licensing Board in Sabah and Sarawak.
Only Malaysian citizens with a Public Service Vehicle licence and a valid e-hailing permit are eligible.
To prevent leakages, all operators must submit accurate, complete, and verified monthly trip records.
Drivers not meeting the minimum travel activity will not automatically receive additional eligibility.
Enforcement action may be taken against drivers or operators found submitting false or inconsistent information. – Bernama
