Fuel subsidy scrapped due to MyKad snag
However, industry sources claimed that the latter is due to the fact that the current MyKad solution lacks the structure needed for smooth implementation of the programme.
Under the proposed programme, the transaction process involving the MyKad was meant to mirror that of a credit card’s. A customer would swipe his MyKad at the outdoor pump, key in the cash amount and automatically receive a subsidy.
But FMT learnt that Malayan Banking Berhad, the company that was awarded the fuel subsidy programme, doesn’t have a solution that supports the use of the MyKad at outdoor pumps.
So 70% of customers who purchase petrol in cash would be subjected to a lengthy process in order to receive their subsidy.
The cashier would have to insert a customer’s MyKad into a terminal and an optical scanner will read the customer’s thumb print.
The information will be sent to Maybank’s database to be verified and the customer will then key in the subsidised amount at the outdoor pump.
Petrol dealers and oil companies expressed concern that this process will lead to overcrowding in petrol stations and give rise to irate customers.
The government reviewed the complexity of the process and acknowledged it as yet another reason to scrap the programme.



March 9, 2010
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