Cabinet approves inclusion of Malaysians with Singapore licences in BUDI95 subsidy scheme
Malaysians holding Singapore driving licences will soon be eligible for subsidised RON95 petrol under the BUDI95 scheme, following government approval to extend access to this group.
New Fuel Subsidy Access
Starting 30 September 2025, Malaysia’s new targeted subsidy mechanism, BUDI95, will allow citizens with Malaysia-registered vehicles to buy RON95 petrol at RM1.99 (S$0.60) per litre. Non-citizens with Malaysia-registered cars will continue paying RM2.60, while those drivers of vehicles from Singapore or Thailand are restricted to purchasing RON97 at RM3.21.
Problem for Malaysians in Singapore
Initially, the scheme excluded Malaysians holding Singapore driving licences because the subsidy is tied to MyKad and local licence records. Many Malaysians who work in Singapore were left out, as they had to switch licences to comply with Singapore’s regulations.
Government Response to Complaints
After significant online backlash, Transport Minister Anthony Loke confirmed on 25 September that the Cabinet has agreed in principle to include this group. He emphasised that while the BUDI95 system primarily targets Malaysians with MyKad and local licences, the government recognises the hardship faced by commuters across the Causeway.
Registration Process To Be Introduced
Loke announced that a special registration process will be announced for Malaysians holding Singapore licences but driving Malaysia-registered vehicles. This adjustment ensures they are not permanently excluded from the subsidy. Further details on the procedure will be announced next week.
Short Delay Expected
Although these Malaysians will not benefit immediately when BUDI95 launches, Loke assured that “the government has not forgotten them.” Once the mechanism is in place, tens of thousands of cross-border workers are expected to gain access to subsidised fuel.
Broader Implications
The move highlights Malaysia’s efforts to balance fairness in subsidy distribution with cross-border economic realities. For Singaporeans, it reinforces existing rules that only Malaysian citizens qualify. For Indonesians travelling through Johor, the policy underscores the importance of vehicle registration and national identity systems in accessing subsidies.
By extending BUDI95 to Malaysians with Singapore licences, the government aims to ease commuting costs for thousands of workers while maintaining subsidy protection for citizens only. The adjustment reflects a balance between domestic policy and regional mobility, with wider implications for neighbouring Singapore and Indonesia’s cross-border dynamics.
Sources: AsiaOne (2025) , SAYS (2025)
Keywords: Malaysia Fuel Subsidy, Singapore Driving Licence, RON95 Subsidy, BUDI95 Fuel, Anthony Loke, Causeway Workers
