KUALA LUMPUR (July 2): The government has approved 115,000 applications for cash subsidies on diesel from individual vehicle owners under the Budi Madani initiative as of July 1, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

While emphasising that the government will intensify efforts to raise awareness among the public and streamline the application process to ensure eligible individuals receive the cash aid, Amir noted that some eligible applicants may choose not to apply for the cash aid due to personal reasons.

"Based on data from the Inland Revenue Board, out of the 300,000 eligible individuals, approximately 100,000 have not submitted an income tax declaration form for at least five years, even though they are below retirement age. Additionally, the majority of those who did not apply for the cash aid also have no records with the IRB," Amir told the Dewan Rakyat on Tuesday.

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The Budi Madani initiative is a platform to distribute diesel subsidy cash aid following the government's reform of diesel subsidies, which began in June, resulting in floating diesel prices in Peninsular Malaysia.

The initiative includes individual assistance (Budi Individu) and assistance for farmers and small commodity planters (Budi Agri-Komoditi). Eligible recipients will receive RM200 monthly.

Meanwhile, Amir highlighted that early indications show targeted subsidies are effective in reducing leakages, with diesel retail sales in Peninsular Malaysia dropping by over 30%, and border area petrol stations experiencing reductions of 40% to 50% since the subsidy cuts.

"This is a clear sign of reduced smuggling. Incremental retail price increases by the government will not achieve this result because they do not address the price gap," Amir added. 

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