Malaysia Considers Blocking Foreign Credit Cards at Petrol Stations to Curb Subsidy Leakages

KUALA LUMPUR, Feb. 9: The Malaysian government is studying a proposal to block the use of foreign-registered credit cards at outdoor payment terminals at petrol stations as part of new measures to curb fuel subsidy leakages.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd. Ali said the move is among several additional steps being considered to strengthen enforcement under the Budi 95 RON95 targeted petrol subsidy mechanism.

“We are evaluating whether this mechanism can be expanded, and plainclothes ministry officers will also be deployed to monitor known hotspots,” he said during his winding-up speech on the motion of thanks for the Royal Address in the Dewan Rakyat today.

Armizan also warned that threats allegedly made against petrol station operators over the sale of RON95 fuel are criminal offenses, urging affected parties to lodge police reports.

From April 1, regulations barring occupants of foreign-registered vehicles from purchasing subsidized RON95 petrol will be enforced. He added that the government is reviewing legislative amendments to hold individuals accountable for illegally pumping subsidized fuel, instead of placing responsibility solely on petrol station operators.

On the digital economy front, Armizan said the ministry is finalizing new e-commerce legislation, which is expected to be tabled at the next parliamentary sitting. Existing laws such as the Consumer Protection Act of 1999 and the Competition Act of 2010 are also being used to tighten enforcement against an influx of foreign products and services.

He added that updated guidelines on foreign business involvement will be introduced to ensure the domestic market is not dominated by foreign entities while ensuring fair competition for micro, small, and medium enterprises (MSMEs).

Armizan also encouraged small traders and cooperatives to participate in the Madani Rahmah sales programs, noting that most of the 2,100 participating operators nationwide are small retailers.