PETALING JAYA: The Federation of Malaysian Consumers Associations (Fomca) has welcomed the government’s plan for targeted RON95 petrol subsidy, but cautioned that loopholes and technical flaws must be plugged before full rollout.
Its CEO Dr Saravanan Thambirajah said while the aim of ensuring that subsidies reach those who truly need them is sound, weak verification and enforcement could open the door to abuse.
“One of the biggest risks is Malaysians deliberately lending their MyKad to foreigners or other ineligible persons to gain access to subsidised fuel.
“This amounts to subsidy diversion and the exploitation of public resources. Beyond undermining the policy’s intention, it also opens the door to identity fraud and organised misuse.”
Saravanan said Fomca views such behaviour as a “grave breach of trust, tantamount to a betrayal of national interest”.
He urged the government to impose heavy punishments, including jail, for offenders.
“To deter abuse, enforcement must be firm and visible, supported by real-time data monitoring and anomaly detection to flag suspicious usage and penalties not only for individuals but also syndicates.
“Public awareness campaigns should also highlight the legal and personal risks of lending one’s MyKad.”
Saravanan also warned against parents misusing their children’s MyKad to gain extra allocations, adding that eligibility should be tied to driving age or vehicle ownership, not merely possession of an identity card.
He raised another concern over faulty MyKad chips, which could leave eligible consumers paying full price if their cards cannot be read.
“This will cause unnecessary disputes at petrol stations, especially during peak hours.”
He suggested backup mechanisms such as secure mobile apps, QR codes, temporary manual overrides or a “fill now, reconcile later” procedure.
Saravanan said credibility hinges on fairness, transparency and strong safeguards.
“The system must be resilient, with load testing and encryption to prevent technical failures and hacking. Strict data protection protocols are essential, and mishandling personal data must be treated as a serious offence.”
He said as many kiosk counters are staffed by foreign workers, operators should be held accountable through mandatory training, monitoring and penalties for breaches.
If MyKad verification proves unreliable or risky, Fomca suggests a dedicated subsidy card or a secure digital app linked to verified government data.
“Whatever the model, it must remain simple, accessible and secure so that subsidies stay targeted without burdening consumers.”