19th December 2025 - 3 min read
The government has no plans to replace fuel subsidies under the Budi95 scheme with cash rebates to encourage drivers to switch to electric or hybrid vehicles, Finance Minister II Datuk Seri Amir Hamzah Azizan said.
He said such a move would alter the original purpose of the Budi95 scheme and could weaken its effectiveness for groups that rely on internal combustion engine vehicles for income and daily needs.
Amir Hamzah explained that Budi95 was introduced to shift Malaysia away from blanket fuel subsidies towards a more targeted approach. The aim is to ensure fuel assistance continues to reach individuals who genuinely need it or depend on fuel for their livelihood.
He made these remarks during the Dewan Negara’s oral question-and-answer session, in response to a supplementary question from Senator Dr Lingeshwaran R Arunasalam on whether the 600-litre quota under Budi95 could encourage drivers to transition to electric or hybrid vehicles.
The Finance Minister II said the Budi95 scheme is not intended to promote the adoption of electric or hybrid vehicles. Instead, its effectiveness is assessed based on its ability to reduce subsidy leakages, protect targeted groups, and ensure stable implementation from a user experience perspective.
He added that providing cash rebates as an alternative to fuel subsidies for environmentally friendly vehicles would fall outside the scope of Budi95 and could create policy overlap.
Amir Hamzah said efforts to encourage the adoption of electric and hybrid vehicles are addressed through separate frameworks and initiatives. These include the development of charging infrastructure and measures under the National Automotive Policy.
He noted that separating these policy tools is important to ensure each initiative achieves its intended objective without conflicting with others.
Earlier, Amir Hamzah said more than 106,000 drivers, or about 65% of approximately 164,000 registered e-hailing drivers, are eligible to receive fuel subsidies under the Budi95 scheme. Eligible drivers receive fuel support ranging from at least 600 litres to 800 litres, based on December 2025 data.
He said each driver’s monthly travel distance is calculated using consolidated trip data from all e-hailing operators. The data is verified and validated by the Land Public Transport Agency and the Commercial Vehicle Licensing Board in Sabah and Sarawak.
According to the Finance Minister II, only Malaysian citizens who hold a Public Service Vehicle driving licence and a valid e-hailing permit are eligible for subsidies under the Budi95 scheme.
To prevent subsidy leakages to inactive or unauthorised drivers, all e-hailing operators are required to submit accurate and verified monthly trip records at the beginning of each month. Drivers who fail to meet the minimum travel activity requirement in the previous month will not automatically receive continued eligibility.
Amir Hamzah added that enforcement action may be taken against drivers or operators found to have submitted false, questionable, or inconsistent information compared with system records.
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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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