Datuk Seri Amir Hamzah Azizan - RON95 Targeted Subsidy Set to Save RM8 Billion Annually

The government plans to introduce a targeted subsidy for RON95 petrol in mid-2025, aiming to cut subsidy leakages and ensure benefits reach those who truly need them.
November 9, 2024 by
Datuk Seri Amir Hamzah Azizan - RON95 Targeted Subsidy Set to Save RM8 Billion Annually
Huzaifah

Datuk Seri Amir Hamzah Azizan is a prominent Malaysian corporate leader who has significantly contributed to the nation's economic and financial sectors. In December 2023, he was appointed as the Minister of Finance II, reflecting his extensive experience and leadership in various key industries.

Ministry of Finance

Early Life and Education

Born in Penang in 1967, Amir Hamzah is the eldest son of the esteemed corporate figure, the late Tun Azizan Zainul Abidin. He earned a Bachelor of Science degree in Management, majoring in Finance and Economics, from Syracuse University, New York. Furthering his education, he attended the Stanford Executive Programme at Stanford University and completed the Corporate Finance Evening Programme at the London Business School.

Professional Career

Amir Hamzah's career began with a decade-long tenure at the Shell Group of Companies, where he held various roles across Malaysia, Singapore, and the United Kingdom. In 2000, he joined MISC Berhad, eventually becoming its President and CEO in January 2009. His leadership journey continued with significant positions, including:

  • Managing Director/CEO of Petronas Dagangan Berhad in June 2010.
  • Group Managing Director/CEO of Petronas Lubricants International in August 2012.
  • Managing Director/CEO of Icon Offshore Berhad in March 2016.
  • Group CEO of Themed Attractions Resorts & Hotel Sdn Bhd, a subsidiary of Khazanah Nasional Berhad, in December 2017.
  • President/CEO of Tenaga Nasional Berhad (TNB) from April 2019 to February 2021. SIDC

In March 2021, Amir Hamzah was appointed as the Chief Executive Officer of the Employees Provident Fund (EPF), Malaysia's largest pension fund, where he served until his ministerial appointment in December 2023.

Ministerial Role

On December 12, 2023, Amir Hamzah was sworn in as a Senator and subsequently appointed as the Minister of Finance II. In this capacity, he works alongside the Minister of Finance I, contributing his vast corporate experience to Malaysia's financial and economic policies.

Board Memberships and Honors

Throughout his career, Amir Hamzah has held non-executive roles, including:

  • Non-Executive Chairman of Malaysian Resources Corporation Berhad (MRCB).
  • Board member of Sime Darby Plantation Berhad and Sime Darby Oils International Limited. SIDC

His contributions have been recognized with honors such as the Grand Commander of the Exalted Order of Malacca (DGSM), conferring upon him the title "Datuk Seri."

Datuk Seri Amir Hamzah Azizan's extensive experience across various sectors and his commitment to public service underscore his pivotal role in shaping Malaysia's economic landscape.

He highlighted that up to 40% of RON95 consumption currently goes to non-citizens, the commercial sector, and smuggling activities, resulting in significant subsidy losses.

“The shift from a blanket subsidy system to a targeted approach could save the government up to RM8 billion annually, as the current RON95 subsidy costs around RM20 billion per year,” Amir Hamzah said during a parliamentary session.

How the Targeted Subsidy Will Work

The new subsidy model will use a tiered pricing system, similar to mechanisms already in place for electricity and diesel subsidies:

  • Higher electricity users pay higher tariffs.
  • Eligible logistics sector vehicles buy diesel at RM2.15 per litre (subsidised), compared to the market price of RM2.50.

For RON95, pump prices will be temporarily set at market rates. However, eligible individuals will still enjoy RON95 at subsidised prices.

Pilot Project and Implementation

The government has launched a pilot project to facilitate RON95 purchases via MyKad and e-wallets, ensuring that subsidies are allocated to intended beneficiaries.

Amir Hamzah noted that final details, including eligibility criteria, are being fine-tuned to align with the rakyat’s needs. Comprehensive measures, modeled on the diesel subsidy system, will be introduced to ensure smooth implementation and public confidence.

Commitment to Reducing Living Costs

This targeted subsidy approach is part of the government’s broader strategy to help Malaysians cope with rising fuel prices and living costs, ensuring subsidies are directed toward lower-income citizens rather than affluent groups or non-citizens.

By addressing inefficiencies in the current subsidy framework, the government aims to balance fiscal responsibility with public welfare.

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Datuk Seri Amir Hamzah Azizan - RON95 Targeted Subsidy Set to Save RM8 Billion Annually
Huzaifah November 9, 2024
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