KUALA LUMPUR: The government will move ahead with its plan to implement targeted subsidies for RON95 petrol this year, but the rollout will be phased to ensure the most effective and least disruptive mechanism is adopted.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the aim is to strike a careful balance, delivering fiscal reforms while safeguarding the welfare of the rakyat.

"The prime minister (Datuk Seri Anwar Ibrahim) has made it clear that targeted subsidies for RON95 will be introduced this year," he said.

"However, as with the diesel subsidy reform, we need to ensure the mechanism is precise and does not impose unnecessary burdens on the people."

Amir Hamzah said the Finance Ministry is currently in the process of finalising a robust targeting system, which will be presented to the Cabinet once completed.

Speaking at the launch of SME Bank's 2025 Budget initiatives today, he also stressed that the eventual rollout would be measured and manageable.

"As the prime minister has assured, the government will not impose a high threshold," he said. "Our priority is to protect the majority of Malaysians from any adverse impact arising from the RON95 subsidy rationalisation."

He added the move is part of broader efforts to improve subsidy efficiency and ensure that public funds are directed to those who need them most.

Last week, Anwar reiterated that the RON95 subsidy reform will proceed as planned, dismissing speculation that it would trigger widespread hardship.

He also hit back at the opposition, describing their criticism as "political theatrics" designed to stir fear and mislead the public on the government's intentions.