Malaysia Clarifies Rules on Using MyKad for BUDI95 Fuel Subsidy Scheme

Malaysia’s National Registration Department (NRD) has clarified that the use of the national identity card, MyKad, to obtain subsidies under the BUDI95 initiative is permitted provided existing regulations are followed. The clarification comes after public discussion about potential restrictions. According to Bernama, the department emphasised that MyKad must only be used by its rightful owner and warned that lending or misusing the identification document could lead to legal consequences.

Identity Protection Remains Central to Subsidy Access

The National Registration Department said its priority is to ensure that MyKad remains a secure and trusted form of identification while continuing to support government programmes such as BUDI95. As Malaysia’s official identification document, MyKad is widely used for identity verification across public services and policy initiatives.

Officials stressed that the system relies on the integrity of identity verification. Allowing only the legitimate cardholder to use the document helps maintain confidence in digital and administrative processes that support government service delivery.

Regulation 25 Prohibits Use by Third Parties

Under Regulation 25 of the National Registration Regulations 1990, it is an offence for anyone to use or possess a MyKad belonging to another individual. The NRD therefore urged members of the public not to hand over their identity card to others for any purpose, including when conducting transactions involving subsidised fuel.

The department warned that doing so could expose individuals to legal liability and increase the risk of identity misuse. Safeguarding the card is essential to prevent fraudulent activity and ensure that government benefits are delivered to eligible recipients.

Clarification Following Investigation in Kelantan

The NRD also clarified that earlier remarks by its director-general, Datuk Badrul Hisham Alias, referred specifically to an investigation involving the misuse of four MyKad cards in Kelantan. The statement was not intended to suggest that the use of MyKad for subsidy access would be restricted.

The department encouraged the public to consult official sources and understand the full context of policy-related announcements before drawing conclusions. Clear communication, it said, is important for ensuring informed public discussion around government programmes.

Digital Identity and Trust in Public Services

The use of identity credentials such as MyKad in subsidy delivery reflects Malaysia’s broader move towards data-driven public administration. Efforts to strengthen identity assurance and verification systems are increasingly linked to wider digital governance initiatives, including programmes focused on data-driven road enforcement in Malaysia.

Across the public sector, policymakers are also exploring how technologies and data governance frameworks can reinforce institutional trust and service integrity, themes explored in discussions on building public sector trust through AI and data. In this context, maintaining the integrity of foundational identity systems such as MyKad remains a key component of secure and accountable digital government.