Malaysia’s government has no plans to replace the fuel subsidy under the BUDI95 scheme with cash rebates aimed at encouraging drivers to switch to electric (EV) or hybrid vehicles, said Finance Minister II Datuk Seri Amir Hamzah Azizan today.
He explained that doing so would shift the original purpose of BUDI95 and could undermine the effectiveness of the targeted subsidy for those who rely on internal combustion engine vehicles for income or daily needs. “The primary objective of BUDI95 is to move from a blanket subsidy to a targeted one, ensuring fuel assistance continues to reach those who truly need it,” he told the Dewan Negara during a question-and-answer session.
Amir Hamzah was responding to a supplementary question from Senator Dr Lingeshwaran R Arunasalam on whether the 600-litre quota under BUDI95 effectively encourages drivers to adopt EVs or hybrid vehicles, and if cash rebates might be provided as an alternative incentive. He clarified that BUDI95 is not designed to promote EV or hybrid adoption. Its success is measured by reducing subsidy leakages, protecting target groups, and maintaining stable implementation for users.
Efforts to promote electric and hybrid vehicle adoption are handled separately, including the expansion of charging infrastructure and the National Automotive Policy, he added. “This approach ensures each policy achieves its objectives without conflicting with one another,” he said.
According to Amir Hamzah, as of December 2025, over 106,000 drivers—about 65% of the 164,000 registered e-hailing drivers—are eligible for fuel subsidies under BUDI95, receiving between 600 to 800 litres per month. Eligibility is based on monthly trip data consolidated from all e-hailing operators (EHOs) and verified by the Land Public Transport Agency (APAD) and the Commercial Vehicle Licensing Board (LPKP) in Sabah and Sarawak.
Only Malaysian citizens holding a Public Service Vehicle driving licence and a valid e-hailing permit qualify for the subsidies. To prevent misuse, EHOs must submit accurate monthly trip records to APAD and LPKP. Drivers failing to meet the minimum travel distance in the previous month will not automatically receive additional fuel subsidies. Amir Hamzah warned that enforcement action may be taken against drivers or operators who submit false or inconsistent data.
