Here’s a bold statement: Malaysia’s government isn’t planning to swap its BUDI95 fuel subsidy for electric vehicle (EV) incentives, and this decision is sparking conversations about the future of transportation and energy policies. But here’s where it gets controversial—while some argue this move could slow the transition to greener vehicles, others believe it’s crucial to protect those who still rely on traditional internal combustion engines. Let’s dive in.
On December 18, 2025, Finance Minister II Amir Hamzah Azizan made it clear: the BUDI95 subsidy isn’t going anywhere—at least not in favor of EV incentives. Speaking in the Dewan Negara, Amir explained that replacing the subsidy with cash rebates for EVs or hybrids would derail the program’s original purpose. And this is the part most people miss—BUDI95 was designed to shift from a blanket subsidy to a targeted one, ensuring fuel assistance reaches those who genuinely need it for daily essentials, like e-hailing drivers and low-income households.
Amir emphasized that BUDI95’s success isn’t measured by its ability to push people toward EVs but by its efficiency in reducing subsidy leakage, protecting vulnerable groups, and maintaining a stable user experience. For EV adoption, the government has separate frameworks, such as the National Automotive Policy and investments in charging infrastructure. Here’s a thought-provoking question: Is it fair to repurpose a subsidy meant for the needy to incentivize a shift that might primarily benefit higher-income groups?
When asked about the 600-litre quota under BUDI95 and its potential to encourage EV adoption, Amir reiterated that the scheme’s focus remains on targeted support. He highlighted that over 106,000 e-hailing drivers—65% of the registered total—are eligible for subsidies ranging from 600 to 800 litres monthly, based on December 2025 data. These quotas are determined by consolidating trip data from e-hailing operators and cross-checking it with transport agencies to prevent fraud.
To ensure fairness, all e-hailing operators must submit verified trip records monthly. Drivers who don’t meet the minimum travel activity won’t automatically qualify for additional subsidies. This system aims to balance support for those in need while minimizing misuse.
Now, here’s where you come in: Do you think the government should stick to its guns with BUDI95, or is it time to rethink subsidies to accelerate the EV revolution? Let’s keep the conversation going in the comments—your perspective matters!
