December 4, 2025
Local
Local
KUALA LUMPUR, Oct 2 — The rollout of the Budi Madani RON95 (Budi95) initiative is seen as a holistic approach that not only alleviates people’s financial burden but also tackles subsidy leakages, according to academics.
Dr Adilah Azhari, Senior Lecturer at the Department of Finance, School of Economics, Finance and Banking, Universiti Utara Malaysia (UUM), said Budi95 could help ease the government’s financial pressure caused by subsidy leakages, allowing funds to be redirected to more critical sectors.
“The savings generated can be channelled into strategic investments, such as renewable energy and low-carbon technologies, to support Malaysia’s goal of achieving net-zero emissions by 2050 under the National Climate Change Policy 2.0,” she told Bernama.
She added that Budi95 is a key policy to restructure national spending on a more sustainable path while enhancing public awareness of fairer, targeted subsidies that benefit those who truly need them.
Adilah also noted that the initiative forms part of Malaysia’s low-carbon transition, given that the country is one of Southeast Asia’s highest carbon emitters after Brunei and Singapore.
However, she stressed the importance of strict monitoring to prevent misuse, such as identity card cloning and theft.
Meanwhile, Associate Professor Dr Mazlan Ali of the Perdana Centre, Razak Faculty of Technology and Informatics, Universiti Teknologi Malaysia (UTM), highlighted that the lower RON95 price brings significant relief to the B40 group.
“Some now spend less than before. While some may dismiss the savings as small, I see it as the government’s effort, and people should appreciate it,” he said.
Mazlan also observed strong public support for the initiative.
“I think the acceptance of Budi95 has been overwhelming. Social media is full of praise for the government’s move, with many saying the lower fuel price has eased their burden,” he added.
Budi95 was launched in phases starting Sept 27, initially benefiting 300,000 Malaysian Armed Forces and Royal Malaysia Police personnel, before being extended to over five million Sumbangan Tunai Rahmah (STR) recipients in the B40 category on Sunday.
In total, 16 million Malaysians aged 16 and above with a MyKad and valid driving licence are eligible for the subsidised RON95 petrol price of RM1.99 per litre, capped at 300 litres a month.
The Ministry of Finance (MOF) previously set the unsubsidised retail price of RON95 petrol at RM2.60 per litre for the period of Sept 30 to Oct 8. — Bernama
