News

by NURNABIHAH DINI 

CITIZENS have welcomed the nationwide rollout of BUDI Diesel, saying the expansion of the targeted fuel subsidy programme will help ease their monthly fuel expenses while offering a refuelling experience similar to the existing BUDI95 system.

Private diesel vehicle owner Syaqif Aiman Sharom said the government’s decision to extend the subsidy to diesel users was appreciated, as the programme had previously only covered RON95 users.

“As diesel users, we can finally enjoy the benefits of the government’s BUDI MADANI initiative. We are grateful that the subsidy has now been extended to diesel,” he told reporters after Finance Minister II Datuk Seri Amir Hamzah Azizan’s visit at a Caltex petrol station in Putrajaya today.

Syaqif said using the system was straightforward, with the process almost identical to that of BUDI95.

“For me, there is no significant difference. We tried it just now and the steps are basically the same as BUDI95, so I did not face any problems,” he added.

He estimated the subsidy could reduce his monthly fuel bill by between RM500 and RM1,000, given his relatively high diesel consumption of around 500 litres a month.

Meanwhile, Shahrizal Amri Ja’fah, a BUDI95 user, said although he does not drive a diesel vehicle, he welcomed the government’s decision to expand the programme.

“When the government announced that the subsidy would also be extended to diesel users, I think many of the concerns raised by diesel vehicle owners were addressed. I would like to thank the government for extending the benefit,” he said.

He added that targeted fuel subsidies had helped lower transportation costs, noting that BUDI95 had already reduced his commuting expenses for daily travel between Putrajaya and Kuala Lumpur.

“The lower fuel price really helps people who commute every day,” he said.

Under the expanded BUDI Diesel, eligible private diesel vehicle owners can now purchase subsidised diesel at RM2.10 per litre, down from RM2.15 previously and well below the current market price.

It is expected to benefit more than 700,000 eligible vehicle owners nationwide, comprising about 400,000 private diesel vehicle owners in Peninsular Malaysia and another 300,000 in Sabah, Sarawak and Labuan.

The post Malaysians welcome BUDI Diesel expansion, cite substantial monthly savings appeared first on The Malaysian Reserve.

by HIDAYATH HISHAM

MALAYSIA’S airport service decline reflects years of weak recovery and preventive maintenance as well as insufficient capital investment, says the Public Accounts Committee (PAC), calling for tighter oversight of Malaysia Airports Holdings Bhd (MAHB) after its privatisation.

PAC chairman Datuk Wira Mas Ermieyati Samsudin said the finding was contained in PAC’s report on public airport management under the Finance Ministry (MOF), Transport Ministry (MOT) and MAHB, which was tabled in the Dewan Rakyat today.

“The decline in service quality at the country’s main gateways, particularly the series of infrastructure and operational system failures at airports, is a clear manifestation of the failure to carry out proper recovery and preventive maintenance over the years, as well as a lack of capital investment,” she said in a statement.

PAC said public airport assets and infrastructure are ageing, require urgent improvements and would involve high costs.

However, the committee said MAHB, when it was still a listed company, faced a conflict between protecting shareholder interests and funding future growth.

The report followed 19 proceedings held between Feb 17 and Aug 20, 2025, involving witnesses from the MOF, MOT, Khazanah Nasional Bhd, the Employees Provident Fund (EPF), MAHB, airlines, Bursa Malaysia and the Securities Commission Malaysia, among others.

PAC said the National Airports Masterplan under MAHB was introduced in 2008 and reviewed in 2020, while the MOT had started work on the National Airports Strategic Plan to guide airport infrastructure and operations nationwide.

The plan is meant to define the role of each airport, whether as an international, domestic or feeder hub.

On airport facilities, PAC said the aerotrain upgrading project, which covered control systems, power systems, public announcement systems, closed-circuit television, platforms, track columns and carriage capacity, had been completed and began operations on July 1, 2025.

However, it noted that recurring service disruptions remain.

PAC also said the baggage handling system is still being upgraded, with MAHB taking steps to ensure high-priority capital projects are carried out quickly and efficiently.

Mas Ermieyati said the new Operating Agreement signed in March 2024 gives MAHB broader room and financing flexibility to channel capital expenditure into airport improvements and expansion.

She said former independent MAHB board members and the former CEO believed the company could rejuvenate its assets internally, supported by its AAA credit rating and capital flexibility under the new agreement.

However, Khazanah and EPF argued that privatisation through technical strategic partner Global Infrastructure Partners was needed to inject commercial “shock therapy”, speed up decision-making without public market dividend pressure and break the existing bureaucratic culture.

PAC said airlines were more concerned about the outcome of MAHB’s transformation plan than its ownership structure or choice of strategic partner.

The committee said airlines wanted sufficient capital investment for public airports, better operational competence and stronger service standards to improve customer experience.

Mas Ermieyati said the Securities Commission and Bursa Malaysia had confirmed that the MAHB takeover and privatisation process, including the extension of the offer period and the lowering of the acceptance threshold from 90% to 85%, complied with the law and takeover code.

Despite MAHB’s privatisation, she said the government still retains strategic control through a 70% shareholding held by Khazanah and EPF, as well as a golden share that allows the appointment of the chairman, managing director and four board members.

She said airport assets and land remain government-owned, while MAHB only operates the airports.

PAC also said MAHB and the consortium do not have access to classified data such as immigration information, which remains under the relevant ministries and agencies.

Among its eight recommendations, PAC said Khazanah and EPF’s combined local shareholding in MAHB must remain at least 70%.

It also said any future change in MAHB’s equity ownership structure or sale of strategic assets must receive Cabinet approval.

PAC recommended that the MOT and the Civil Aviation Authority of Malaysia require MAHB to publish regular operational performance and service key performance indicator reports to the public to preserve accountability after its delisting.

It also called for MAHB to submit regular physical progress and detailed cash flow reports for high-impact projects, including the aerotrain, baggage handling system and airport expansion projects.

These reports, PAC said, should be tabled regularly in the Dewan Rakyat and submitted to PAC to allow continued parliamentary oversight.

Mas Ermieyati said MAHB must also involve industry stakeholders, especially local airlines, in long-term infrastructure planning to ensure new facilities meet actual operational needs.

“Local airlines expressed their intention to be involved more proactively in the transformation plan and improvement of the country’s airport operations,” she said.

PAC also urged MAHB to tighten procurement procedures and contractor screening with the Malaysian Anti-Corruption Commission, CAAM and the Malaysia Competition Commission to prevent incompetent contractor cartels.

This, the committee said, is needed to ensure basic facility failures such as roof leaks, broken toilets and faulty aerobridges do not recur.

The post PAC: Airport service decline reflects years of weak maintenance, underinvestment appeared first on The Malaysian Reserve.