2024 year of reckoning for foreigners buying subsidised RON95

Domestic trade ministry set to crack down on the practice in the new year

6:19 PM MYT

 

KUALA LUMPUR – The Domestic Trade and Cost of Living Ministry will be stepping up its enforcement next year, especially by cracking down on the sale of subsidised RON95 fuel to foreign-registered vehicles nationwide. 

According to minister Datuk Armizan Mohd Ali, the ministry is aiming to beef up its enforcement activities to tackle the issue, following clips posted online of Malaysians admonishing drivers filling their foreign-registered cars with RON95. 

“2024 will be a year for our strengthened enforcements, including the issue of subsidised fuel purchase and fuel operators making the mistake of selling RON95 (to foreign-registered vehicles),” Armizan told Scoop. 

Malaysia had imposed a ban on the sale of RON95 to foreign-registered vehicles since August 1, 2010, to ensure that the petrol subsidy benefitted only Malaysians.

Instead, foreign-registered vehicles are allowed to buy unlimited RON97 petrol while diesel purchases can be carried out once a day with a limit of 20 litres at gas stations within 25km of the Malaysia-Singapore border.  

Armizan said issues relating to the sale of RON95 will be addressed when the targeted subsidy policy for fuel is implemented sometime next year. 

Previously, Economy Minister Rafizi Ramli said the government would roll out its targeted RON95 subsidy scheme in the second half of 2024. 

Noting that cash assistance would be provided directly to citizens as part of the targeted subsidy scheme, Armizan urged individuals to register and verify their profile information in the government’s Central Database System (Padu). 

An effective identification process through Padu, which will be launched by Prime Minister Datuk Seri Anwar Ibrahim on January 2, will enable the government to ensure that subsidies reach intended target groups instead of being misappropriated by irresponsible parties to gain profit. 

“We want government subsidies, which this year alone amounted to RM81 billion, to be distributed fairly to those in need. The amount of this social assistance will be based on Padu data.

“Some people receive aid of RM300, bedridden patients receive assistance of RM500, is it fair or do we need to provide more? We will identify it through Padu,” Armizan, who is also Papar MP, was quoted as saying by Bernama earlier today. 

On Friday, Rafizi said the first 3,000 individuals to register with Padu would receive complimentary NFC-equipped Touch ‘n Go cards as part of a push to boost registration. 

Rafizi had earlier denied allegations from “voices of dissent” claiming that Padu’s development was a waste as it involved contracts worth hundreds of millions of ringgit.

He said Padu was fully developed by civil servants from three agencies – the Economy Ministry, Statistics Department and the Malaysian Administrative Modernisation and Management Planning Unit – in collaboration with all other agencies. – December 31, 2023

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