MCA: Budi Madani subsidy scheme ‘too tight’, needs revision

MCA president Wee Ka Siong has condemned the government’s stringent criteria for the Budi Madani diesel subsidy scheme and called for a revision.

Calling the scheme’s criteria “too tight”, he said it would exclude many farmers and small-scale growers from eligibility due to their limited scope.

He also cautioned against implementing agricultural subsidies under Budi Madani, asserting that such a move could raise food prices or reduce production.

“The RM200 per month subsidy is too small for farmers and small-scale commodity growers as their operation uses not only diesel for transportation but also various other machines.

“Given that food security and food prices are issues of the utmost public importance, it is a big mistake to put the agriculture sector under the Budi Madani scheme,” Wee said on Facebook.

The Budi Madani scheme is a targeted diesel subsidy to eligible groups, including individual assistance (Budi Individu), farmers and small-scale growers (Budi Agri-Komiditi), as well as companies and transport vehicles (My Subsidi Diesel)

Under the scheme, more than 30,000 farmers and small-scale commodity growers have been approved to receive the RM200 cash subsidy, which will be disbursed through their bank accounts.

According to its website, the Budi Agri-Komoditi scheme is open to individuals or organisations that run small farms, actively produce food crops and goods, and generate annual agricultural product sales values from RM50,000 to RM300,000.

Consider other system

Offering solutions, Wee suggested that the agriculture sector should instead be covered under the Subsidised Diesel Control System 2.0 (SKDS 2.0), with more lenient subsidy criteria.

However, if the government insists on the plan, the Ayer Hitam MP urged for the subsidy to be increased and the criteria to be amended.

“The qualifying criteria must also include sole proprietors and the qualifying annual sales revenue should be changed from the current to a more reasonable figure of RM0 to RM1.5 million,” he said.

Domestic Trade and Cost of Living Minister Armizan Mohd Ali announced that 23 eligible commercial vehicles are under the SKDS 2.0 project.

These include rigid lorries (curtainsiders), food catering lorries, and other types used in agriculture and transportation.

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