KUALA LUMPUR, Nov 12 — Economy Minister Rafizi Ramli announced today that a 20-month pilot project had been conducted to prepare for the targeted RON95 fuel subsidy.

The pilot project involved the use of identification cards and e-wallets.

"A pilot project was conducted between 2022 and 2023, utilising identification cards and e-wallets at selected gas stations. So it has already been tested.

"In terms of eligibility verification at the back end, the Central Database Hub (Padu) has been operational and applied in several use cases,” he said in the Dewan Rakyat.

Rafizi was responding to a supplementary question from Kuala Krau MP Kamal Ashaari, who asked whether the government had tested the implementation and not "announce first, research later.”

"The ‘announce first, research later’ came only from the Opposition,” Rafizi replied.

Earlier, Pulai MP Suhaizan Kayat requested details from Rafizi about the mechanism for using identification cards to verify eligibility for the RON95 subsidy.

"Generally, the first part, determining eligibility, is developed by the economy ministry, while the second part, implementing the two-tier pricing mechanism for RON95 purchases at gas stations, is handled by the finance ministry,” Rafizi said.

He added that the economy and finance ministries are currently reviewing and refining the detailed mechanism for implementing the subsidy.

"The final criteria and mechanism will be presented to the Cabinet, in line with the implementation timeline, targeted for mid-2025,” he added.

Rafizi said the government acknowledges the challenges in implementing the project.

"These challenges include infrastructure issues, particularly, slow internet access in rural areas and damaged ID card chips, risks of identity verification and potential misuse of ID cards.

"Therefore, the government is committed to ensuring that the chosen mechanism is appropriate and does not burden the public,” he said.