Government Focuses on Strengthening BUDI MADANI Instead of New T20 Classification Discussions
Amir Hamzah Azizan said the government is currently prioritising efforts to strengthen the implementation of the BUDI MADANI system rather than discussing new classifications involving the T20 income group.
According to the minister, the government’s immediate focus is on improving the effectiveness of BUDI Diesel and BUDI95 to ensure fuel subsidies are distributed more fairly and efficiently to targeted groups nationwide.
He stressed that no new discussions have taken place regarding additional classifications for the T20 group under the targeted fuel subsidy mechanism.
“As explained earlier by Communications Minister Datuk Fahmi Fadzil, the Cabinet has not discussed any new classification categories for the T20 group.
“Our current approach is to strengthen the implementation of BUDI throughout the country, including expanding it to Sabah and Sarawak. That is our main focus at the moment,” he said.
Amir Hamzah made the remarks after officiating the handover ceremony for an additional preschool block under the Integrated Special Education Programme at Sekolah Kebangsaan Tan Sri Awang Had Salleh.
He was responding to public concerns regarding the definition of the T20 category and how the government plans to manage subsidy targeting in the future.
At the same time, the minister said the government must carefully consider global economic uncertainties and oil supply stability before making any changes to fuel subsidy quotas under the BUDI MADANI programme.
Commenting on calls from several groups to restore the subsidy quota to 300 litres, Amir Hamzah said the government needs to balance fiscal responsibilities with ongoing geopolitical challenges, particularly tensions arising from conflicts in West Asia.
He noted that while several countries have experienced fuel shortages and temporary petrol station closures due to supply disruptions, Malaysia remains relatively stable thanks to domestic oil production capacity and the experience of local petroleum companies in managing supply chains.
“For nearly three months since the conflict began, Malaysia has not experienced supply issues. In some countries, petrol stations had to close because of shortages, but our situation remains under control,” he said.
Amir Hamzah explained that the government’s decision to reduce the subsidy quota from 300 litres to 200 litres was based on studies of actual fuel consumption patterns among subsidy recipients.
According to him, government data showed that the average monthly fuel usage among BUDI95 recipients was only around 98 litres, indicating that the revised quota remains sufficient for most users.
He added that reducing the quota was also necessary to manage the government’s subsidy burden and prevent leakages that could negatively affect national finances.
“If subsidies continue without proper controls, the financial burden on the government would become too high and could affect other national spending priorities,” he said.
The BUDI MADANI programme was introduced as part of the government’s broader fuel subsidy rationalisation strategy aimed at ensuring assistance reaches those who genuinely need it.
The programme is also viewed as part of wider fiscal reform efforts to reduce subsidy leakages and strengthen long-term national financial sustainability amid global economic uncertainty.
-wilayah.com.my
