The Finance Ministry is studying a MyKad-based system for subsidised cooking oil to ensure aid reaches the right people and prevent subsidy misuse.

KUALA LUMPUR: The Ministry of Finance is examining a proposal to integrate the MyKad digital ecosystem with the Sumbangan Asas Rahmah system.

Finance Minister II Datuk Seri Amir Hamzah Azizan said this would strengthen identity verification for the sale of subsidised cooking oil.

He said the ministry is working closely with the Ministry of Domestic Trade and Cost of Living on the initiative.

The move specifically focuses on the Cooking Oil Price Stabilisation Scheme system.

Amir Hamzah said the goal is to curb leakages and ensure subsidies are channelled simply, fairly and accurately.

“This approach leverages existing infrastructure without introducing additional mechanisms,” he said.

He added it ensures only eligible citizens receive the subsidies.

He was responding to a supplementary question in the Dewan Rakyat.

Jimmy Puah Wee Tse had asked if the BUDI MADANI subsidy mechanism would be replicated for other goods.

Amir Hamzah said the use of MyKad for targeted subsidies has proven effective and practical.

He highlighted the success of the BUDI95 system as an example.

“The BUDI95 system processes an average of 3.1 million transactions daily without disruption,” he said.

He stated the high utilisation rate shows the mechanism is accessible, stable and well-received.

Its effectiveness is further shown by the SARA 2025 implementation.

That programme recorded a 99% usage rate via MyKad.

Domestic Trade Minister Datuk Armizan Mohd Ali confirmed the discussions earlier.

He said on Jan 29 that his ministry was in talks with the MOF on the proposal.

The plan involves using identity cards for purchasing subsidised packet cooking oil.

 The Sun Malaysia