DELAYS in registering middle-income earners (M40) for the targeted fuel subsidy scheme (PSP) and problems with the card system are why Putrajaya has postponed its rollout, a source told The Malaysian Insight.

There are loose ends with the scheme’s implementation, mainly involving registration of the M40 recipients, as the contractor appointed by the Finance Ministry (MOF) has yet to begin the process even though it was engaged in March last year.

It is learnt that the contractor, GHL Systems Bhd, will only begin doing so in March.

Another reason for the delay is the MOF-proposed card system, called Kad95.

Petrol station operators do not like what they know of the idea so far and are still waiting to meet the MOF for clarification.

The Malaysian Insight sent questions to GHL and MOF seeking an explanation for the delay, when registration of the M40 group would begin, and whether the card system was still on the table. Neither party has replied.

GHL Systems is a payment service provider with a regional presence in Malaysia, Thailand, Indonesia, the Philippines, Cambodia, Singapore and Australia.

The PSP was to have been launched in July last year, but was held back due to a lack of data on the M40 target group. January 1 was set as the new launch date.

Days before the new year, however, the government announced that it was once again delayed, this time until further notice.

Domestic Trade and Consumer Affairs Minister Saifuddin Nasution said the decision was reached at the final cabinet of the year on December 18.

He said more time was needed for the government to explain the scheme to the people.

According to a source, the government had sufficient data on the B40 group and was ready to credit the payments into the recipient account on April 30.

“We can only do this for the B40 group but we can’t do it for the M40 as they plan to use a card system for them.

“Furthermore, they haven’t even begun the registration process,” the source added.

Problematic card

Petrol Dealers Association of Malaysia (PDAM) president Khairul Annuar Abdul Aziz said the association members have not agreed to the card system for the M40 group.

“We haven’t discussed the mechanism for the card system that the government wants to implement for the scheme.

“We have asked for meetings with MOF, but nothing so far,” Khairul told The Malaysian Insight.

“When the government said it wanted to have a card system, we thought it would be done at the pump, whereby the person uses the card to verify whether he will get the subsidy or not.

“But we were told they wanted a separate system at the cashier, so that the cashier could key in the discounts. Who will pay for this if the cashier makes a mistake by giving a 30 sen discount per litre to the wrong person? Our margin is very low,” said Khairul.

In March last year, GHL Systems announced that it had won a RM25 million contract from the MOF to develop and implement the hardware and software applications for the fuel subsidy programme.

But there were already concerns then that card system for the M40 would be difficult to implement in rural areas because petrol stations were few in these areas, and petrol was commonly sold in bottles at the sundry shops or by roadside traders.

Data on the B40 group, meanwhile, is already available as it is gleaned from the Bantuan Sara Hidup (BSH) database and counterchecked against that of the Road Transport Department on motor vehicle ownership.

But Putrajaya had wanted to include the M40 in the subsidy programme, which would see the price of RON95 fuel floated, as is presently done for the higher grade RON97 fuel.

RON95 and diesel are currently subsidised and capped at RM2.08 per litre and RM2.18 per litre, respectively.

The PSP, which will cost the government RM65.4 million a month, is expected to benefit more than eight million motorists in the low-income B40 and middle-income M40 groups.

The scheme was announced in Pakatan Harapan’s first budget on October 8, 2018.

Under the PSP, individuals who own not more than two cars and two motorcycles are eligible to receive the subsidy.

The qualifying criterion for a car is that it must be 1,600cc and below. Cars which are above 1,600cc must be more than 10 years old to qualify.

Motorcycles must be 150cc and below or at least seven years old to qualify. Luxury vehicles do not qualify for the scheme.

For eligible recipients of Bantuan Sara Hidup (BSH), the petrol subsidy is RM30 per month for car owners and RM12 per month for motorcycle owners. – January 10, 2020.