Free MyKad Chip Replacement Ahead of BUDI95 Rollout

Ensuring Access to Subsidised Fuel - As Malaysia gears up for the launch of the BUDI95 fuel subsidy programme, the government is taking proactive steps to make sure no one is left out. From 23 September to 7 October 2025, the National Registration Department (JPN), under the Ministry of Home Affairs (KDN), will be offering free replacements for damaged MyKad chips nationwide.

This initiative is directly tied to the BUDI95 scheme, which allows eligible Malaysians to purchase RON95 petrol at a subsidised price of RM1.99 per litre using their MyKad for verification. The programme officially goes live on 27 September, and having a functional card is crucial for motorists to access the subsidy.

Why the MyKad Matters

Home Minister Datuk Seri Saifuddin Nasution Ismail highlighted that the MyKad plays a central role in enabling targeted subsidies like BUDI95. Card readers will be installed at all petrol stations and pump terminals, allowing for smooth verification at the pump. A faulty chip could mean being denied access to subsidised fuel, making this free replacement exercise an important safeguard.

Cost Fully Covered by the Government

The two-week programme is expected to cost around RM714,660, which the government has pledged to fully absorb. Saifuddin stressed that no eligible citizen should be excluded from BUDI95 benefits simply because of technical issues with their identification card.

How the Subsidy Works

Under BUDI95, all Malaysians with a valid car or motorcycle driving licence are entitled to up to 300 litres of RON95 petrol per month at the subsidised price of RM1.99 per litre. Any fuel purchased beyond this quota will be charged at the market price, currently estimated at RM2.60 per litre.

More Options Coming Soon

While MyKad will be the primary verification method at launch, the government has confirmed that alternative platforms are on the way. Touch 'n Go (TnG) eWallet and fuelling apps like Setel will soon be integrated into the system, providing drivers with more ways to access the subsidy conveniently.