The Government is reviewing several improvements to the targeted diesel subsidy scheme, with details expected to be announced within the next one to two months, said Second Finance Minister Datuk Seri Amir Hamzah Azizan.
He said the proposed changes include simplifying the application process, relaxing eligibility requirements for vehicles bought through sambung bayar arrangements, and allowing eligible subsidy quotas to be transferred to immediate family members.
“We are still studying several proposals for improvement. In the next one or two months, we will make an announcement, particularly concerning the application process and eligibility,” he said at a press conference after attending the Budget 2027 Engagement Session with industry players here today.
Amir Hamzah said Budget 2027 would also focus on ensuring the targeted diesel subsidy reaches eligible Malaysians more effectively and comprehensively. The Government’s wider aim is to ensure public funds are channelled towards groups that genuinely require assistance while easing cost-of-living pressures.
Through the Budget 2027 engagement sessions, he said authorities were examining various ways to strengthen the targeted diesel subsidy mechanism so eligible recipients could receive the maximum benefit.
In Sabah, around 120,000 pickup and jeep owners have been identified as eligible to apply for diesel subsidy quotas exceeding 300 litres, he said.
However, only about 49,000 eligible vehicle owners in the state have so far registered and submitted their applications.
Amir Hamzah urged more eligible Sabah vehicle owners to come forward and apply, stressing that the necessary application channels were already available.
To assist applicants who are less familiar with technology, the Finance Ministry is working with the Inland Revenue Board (LHDN), Urban Transformation Centres (UTCs) and oil companies to provide face-to-face guidance at service counters and petrol stations.
The Government is expected to announce further details on the targeted diesel subsidy improvements once the ongoing review of the scheme’s processes and eligibility criteria is completed.
