27th March 2026 - 3 min read

Drivers whose licences have been expired for more than 36 months will not qualify for the targeted Budi Madani RON95 subsidy, also known as Budi95.
If you expect to rely on this subsidy, your driving licence status now plays a direct role in whether you qualify. Approval under the scheme is no longer the only issue, because eligibility also depends on whether your licence is still considered active under Road Transport Department rules.
Road Transport Department director-general Datuk Aedy Fadly Ramli said Budi95 eligibility depends on licence status, with the 36 month mark serving as the cut-off point.
He said an active licence is one that has not been expired for more than 36 months from its last renewal date. Within that period, licence holders remain eligible for the subsidy.
Once a licence has been expired for more than 36 months, it can no longer be renewed automatically. If your licence has lapsed beyond that point, you must retake the driving competency test at an accredited driving institute before getting a valid licence again.
Letting a licence stay expired for too long is no longer only an administrative problem. It can also affect access to targeted fuel support.
If you plan to use Budi95, you now need to keep track of whether your licence is still treated as active. Once it falls outside the permitted renewal window, the issue is no longer limited to legal driving status, because subsidy eligibility can be affected as well.
The Road Transport Department also reminded motorists that anyone driving a motor vehicle must ensure their driving licence remains valid.
This means the Budi95 condition follows an existing legal requirement rather than introducing a separate rule just for the subsidy. You already need a valid licence to drive legally, and this condition now reinforces the same requirement by linking it to targeted fuel support.
The 36 month threshold is the main detail in this update because drivers whose licences expired more recently may still remain eligible, as long as they are within the permitted renewal window.
If your licence has been expired for more than three years, the disruption becomes more serious. You cannot simply renew and move on, because automatic renewal is no longer allowed once the licence has lapsed beyond that point.
This update does not expand the subsidy or introduce a new category of support. Instead, it clarifies one of the conditions that can prevent someone from qualifying.
If you drive and expect to benefit from Budi95, keeping your licence active now affects more than road compliance. It can also determine whether you continue to qualify for targeted RON95 subsidy support.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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