MAY 19 — Of late, there has been intense debate over BUDI95, particularly on whether subsidised fuel should be extended to the T20 group, whether the income threshold should be narrowed, and how the mechanism should ultimately be implemented in light of the country’s growing subsidy bill.

But beyond subsidies and income brackets lies a bigger question: is Malaysia’s dependence on private cars and cheap petrol still sustainable in the long run?

The truth is that the Government is now spending some RM6 billion to RM7 billion per month on subsidies following the blockade in the Strait of Hormuz. This is up from about RM700 million in January before the conflict in West Asia started.

This is not sustainable in the long run. Money spent subsidising petrol consumption is money that cannot be fully used to improve buses, trains, walkways, schools, clinics or direct support for those who need it most.

Part of the reason Malaysia remains trapped in the subsidy cycle is that the country has grown heavily dependent on private cars and artificially low fuel prices. Malaysia reportedly has the second highest car ownership rate in Asia.

In major cities such as London, New York, Tokyo and Singapore, taking the train or bus is normal. Office workers, students, professionals, tourists and senior executives use public transport without any social stigma. It is simply the most practical way to move around.

Malaysians must develop the same attitude. Public transport should not be seen as a second-class option.

The good news is that Malaysia is not starting from zero. In the Klang Valley, especially Bukit Bintang where I am active in community work, public transport connectivity has improved considerably over the years. Thanks in large part to the efforts of the Ministry of Transport, the MRT, LRT, monorail, KTM, bus and feeder networks, along with free city bus services, have become far more extensive and accessible in recent years.

The launch of the Segambut Utara KTM station by the Transport Minister on May 15, along with the extension of DBKL’s GoKL13 bus service to include the station, is another clear testament to the government’s continuous commitment to strengthening the public transport network.

Commuters are seen at an MRT station in Kajang, Selangor as calls grow for Malaysia to reduce dependence on fuel subsidies by improving public transport connectivity and promoting smarter mobility solutions. — Picture by Raymond Manuel

Initiatives like the My50 pass have also helped keep commuting affordable. The Putrajaya Line has expanded rail coverage. The LRT3 Shah Alam Line is expected to further improve connectivity. ETS services have also expanded southwards, improving intercity rail travel. These are not small achievements.

That said, there’s still room for improvements. Occasional train delays and breakdowns, crowded coaches, as well as weak first-mile and last-mile connectivity may discourage people from changing their commuting habits. If the government wants Malaysians to reduce petrol consumption, public transport must be reliable, convenient and attractive enough for people to willingly choose it over driving.

This is where more practical solutions are needed. First and foremost, first-and-last-mile connectivity must be prioritised. Services such as on-demand vans have shown that neighbourhoods can be linked to rail stations in a more flexible and efficient manner. In some countries, shared scooters are widely available for short-distance travel, helping commuters get to train stations and reach their final destinations more conveniently.

Another dimension involves reducing unnecessary travel and easing traffic congestion through flexible working hours and work-from-home arrangements. Technology already makes this possible for many jobs. The government can consider incentives for companies that implement staggered hours, hybrid work or staff public transport benefits.

The private sector should also be part of the solution. In Kuala Lumpur, initiatives similar to Bangun KL could be expanded beyond food and beverage discounts to encourage off-peak travel and commuting. The government can also incentivise or encourage toll operators, taxis and ride-sharing platforms to offer lower rates during non-peak hours, helping to spread out travel demand more evenly throughout the day. These will ultimately lead to lower usage of petrol.

Lastly, if private car ownership cannot be avoided, then the government should continue incentivising the shift towards electric vehicles (EVs). The government has already taken several encouraging steps, including extending tax exemptions for EVs, accelerating the rollout of charging infrastructure nationwide, and attracting major global EV investments into Malaysia. 

These efforts must continue to accelerate the country’s transition away from fossil fuel-powered vehicles.

Ultimately, BUDI95 should not be treated only as a subsidy mechanism. It should be treated as a turning point. The global energy situation is telling us that the old model of cheap petrol, more cars and endless congestion cannot continue forever.

If we get this right, Malaysia can use this moment to build a better transport future with more reliable public transport, less congestion and lower subsidy burden on taxpayers.

* Ben Fong Kok Seng is the chairman of the Bukit Bintang Parliamentary Zone Residents’ Representative Council.

** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.