Malaysia to extend fuel subsidy to workers commuting to Singapore

The system will take about two weeks to set up, and until then, Malaysians who hold Singapore driving licenses cannot access the subsidy, which came into effect Tuesday, Transport Minister Anthony Loke said at a press conference Tuesday.

An estimated 200,000 to 250,000 Malaysians cross into Singapore daily for work, he added.

A motorist holds the nozzle to fill-up fuel to his car at a petrol station in Kuala Lumpur on August 1, 2008. Photo by AFP

"They are entitled to the subsidy. In principle, they are Malaysians and live in Malaysia. The only thing different is that they hold Singapore driving licences," he said, as reported by The Straits Times.

"But we need a bit more time because the data kept by the Singapore authorities is not integrated with ours," he added, explaining that Singapore’s privacy laws prevent data sharing with Malaysia’s Road Transport Department.

Under the new subsidy scheme, announced Sept 22, Malaysians can purchase RON95 fuel at MYR1.99 (US$0.47) per liter, a nearly 3% discount from market price. Consumption is capped at 300 liters monthly per individual.

"These benefits and privileges are given as an appreciation and recognition of the spirit of National Day and Malaysia Day, as well as to honor all Malaysians," the Road Transport Department said in a statement.