KUALA LUMPUR: A former economic advisor to the former prime minister has proposed that the government consider giving cash rebates when implementing the targeted subsidies for RON95.
Shahril Sufian Hamdan, who was the economic director at the Prime Minister's Office during the previous administration, said that providing cash rebates is preferable to using an identification system at petrol stations to verify eligibility, as this would reduce the risk of leakages in the implementation of the targeted subsidies.
In the latest episode of the Keluar Sekejap podcast with his co-host Khairy Jamaluddin, the former Umno information chief highlighted the risks of IC-based verification, such as misuse and time-consuming checks.
"Unless there's a way, and this might be a bit complicated, where the cash rebate is adjusted monthly based on how much you spend, instead of giving a fixed amount.
"It would work like the Goods and Services Tax, where you could claim it back.
"Is there any way to implement that? But overall, it's a simpler and lower-risk method compared to using the IC," he said.
Earlier today, Treasury secretary-general Datuk Johan Mahmood Merican said the government is considering a two-tiered pricing mechanism to rationalise RON95 petrol subsidies by introducing databases linked to MyKad and a combination of e-wallets or specific debit cards.
Former Umno Youth chief Khairy Jamaluddin however noted the government's likely concern over the psychological impact of paying in full at point of sale.
"In their view, there's a disconnect between what they receive from the government and what they pay," he said.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 2025 Budget last Friday, had announced the government would be implementing targeted subsidies for RON95 petrol mid-2025.
He said this was based on the government's commitment to always protect the wellbeing for the people and to ensure funds are placed in where they are needed most.