Communications, delivery mechanisms key to effective RON95 targeted subsidy rollout - Experts

KUALA LUMPUR : As Malaysia prepares to roll out a targeted RON95 subsidy scheme next year, experts are raising concerns about implementation challenges and the need for equitable and transparent measures to ensure its success.

Assoc Prof Dr. Ahmed Razman Abdul Latiff of Putra Business School pointed to logistical issues, particularly in rural areas, where internet connectivity could hinder the use of e-wallets for subsidy claims.

“Maybe they have the device, but the internet connection might not be strong enough to facilitate the transaction,” he said.

He suggested using identity cards (ICs) as an alternative but warned of potential misuse.

“However, using ICs also comes with challenges, sometimes, the chip feature on the IC that can’t be read, and there’s potential for abuse. For instance, an eligible person might rent out their IC to someone ineligible.”

Meanwhile, Dr. Elya Nabila Abdul Bahri, a senior lecturer at Universiti Malaya, highlighted the need for fairness and transparency in identifying recipients.

“The process must be transparent, with clear criteria to identify recipients and non-recipients,” she said.

Both experts, speaking on Astro AWANI's Consider This, urged the government to improve communication and engage stakeholders to ensure smooth implementation. They also stressed the importance of comprehensive testing to address technical and logistical challenges.

The government will implement targeted RON95 subsidy in the middle of 2025, covering 85 per cent of the people, based on the Basic Expenditure of Decent Living (PAKW) of households.

It is part of the government’s effort to replace blanket subsidies with a more sustainable model, addressing the needs of vulnerable groups while managing public funds effectively.