NO PLANS TO REPLACE FUEL SUBSIDY WITH CASH REBATES TO SPUR EVS, HYBRIDS SHIFT - AMIR HAMZAH

KUALA LUMPUR, Dec 18 (Bernama) -- The government has no plans to replace the fuel subsidy under the BUDI 95 scheme with cash rebates to encourage a shift to electric (EVs) or hybrid vehicles, said Finance Minister II Datuk Seri Amir Hamzah Azizan today.

He said such a move would change the original objective of BUDI95 and could potentially undermine the effectiveness of the targeted subsidy for groups that rely on internal combustion engine vehicles.

“The primary objective of BUDI95 is to shift from a blanket subsidy to a targeted one, to ensure fuel assistance continues to be channelled to those who truly need it or depend on it as a source of income and for daily necessities,” he said during the Dewan Negara's oral question-and-answer session today.

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He was responding to a supplementary question from Senator Dr Lingeshwaran R Arunasalam on the effectiveness of the 600-litre quota under BUDI95 in encouraging drivers to transition to electric or hybrid vehicles.

Amir Hamzah was also asked whether the government would provide cash rebates as an alternative to subsidies for drivers who choose environmentally friendly vehicles as a long-term incentive.

He said the BUDI95 scheme is not intended to encourage a transition to EVs or hybrid vehicles. Instead, its effectiveness is measured by its ability to reduce leakages, protect target groups, and maintain implementation stability from a user-experience perspective.

He added that efforts to encourage the adoption of EVs and hybrid vehicles are addressed through separate frameworks and initiatives, including the development of charging infrastructure and the implementation of the National Automotive Policy.

“This approach is important to ensure that each policy achieves its respective objectives without conflicting with one another,” he said.

Earlier, Amir Hamzah said more than 106,000 drivers, or 65 per cent of about 164,000 registered e-hailing drivers, are eligible to receive fuel subsidies under the BUDI95 scheme at a rate of at least 600 litres to 800 litres based on December 2025 data.

He said the monthly travel distance of each e-hailing driver is determined based on the consolidation of trip data from all e-hailing operators (EHOs), with data verification and validation carried out by the Land Public Transport Agency (APAD) and the Commercial Vehicle Licensing Board (LPKP) in Sabah and Sarawak.

According to him, only Malaysian citizens who hold a Public Service Vehicle driving licence and a valid e-hailing permit will be considered eligible for subsidies under the scheme.

Amir Hamzah said to prevent subsidy leakages to inactive or unauthorised drivers, all EHOs are required to submit accurate, complete, and verified monthly trip records to APAD and LPKP at the beginning of each month.

“Drivers who do not record the minimum travel activity based on the stipulated travel distance in the previous month will not automatically receive additional eligibility,” he said.

He stressed that enforcement action may be taken against drivers or EHOs found to have submitted false, questionable, or inconsistent information compared with system records.

-- BERNAMA