PETALING JAYA: Concerns over the potential misuse of MyKad under the government’s targeted RON95 petrol subsidy system are valid but with the right safeguards and innovation, the risks can be managed and even turned into opportunities for stronger public trust and fiscal discipline, said Universiti Teknologi Mara senior lecturer in economics Dr Mohamad Idham Md Razak.
“Subsidy leakage is indeed a risk if MyKad is misused but the good news is that it can be managed proactively with proper checks and balances.
“Strong awareness campaigns alongside tighter monitoring systems would help minimise the likelihood of large-scale abuse.”
Mohamad Idham said rather than treating misuse purely as a threat, the government could seize the chance to innovate with new digital verification tools that enhance the credibility of targeted subsidies.
“If misuse were to be widespread, it could inflate the subsidy bill significantly, straining fiscal (resources) that should benefit Malaysians.
“But Malaysia has learned from past experiences and can use advanced data analytics, artificial intelligence and cross-agency collaboration to detect anomalies early.”
He said by addressing misuse head-on, the government could ensure that every ringgit spent strengthens household spending power while contributing to broader economic stability.
Mohamad Idham said safeguards must be both “smart and empowering” to keep the system running smoothly and equitably.
“Biometric verification at the point of sale, integration with real-time databases and randomised audits would make it harder for abuse to flourish.
“At the same time, educating the public about penalties for misuse would encourage responsible behaviour.”
He added that these measures would not only protect government finances but also strengthen trust that subsidies are distributed fairly and transparently.
He said should MyKad verification prove challenging, the government has other innovative options such as digital wallets tied to verified accounts, QR-based vouchers or direct cash transfers via e-banking.
“These methods have been successfully adopted in other countries and can be tailored for Malaysia’s demographic profile and technological readiness.”
He added that exploring such options reflects adaptability and forward thinking, ensuring that the spirit of targeted subsidies remains intact while reinforcing Malaysia’s digital transformation journey.