The Ministry of Home Affairs (KBN) will offer free replacement of damaged MyKad chips nationwide from September 23 to October 7. This is in conjunction with the launch of the Budi95 initiative which allows eligible Malaysians to buy petrol at RM1.99 per litre starting September 30.
This chip replacement programme will ensure that Malaysians continue to have access to targeted petrol subsidies without technical disruption. Since the use of MyKad is required to redeem the Sara scheme in conjunction with Merdeka Day, there has been a significant increase in MyKad exchanges every month. A total of 294,715 chip replacement applications were received between January and August 2025. MyKads with damaged chips can be replaced at all National Registration Department (JPN) offices.
The BUDI95 targeted subsidy can be availed by all Malaysians with a valid car and motorcycle driving licence, and will be set at RM1.99 per litre with a quota limit of only 300 litres per month. If the amount of petrol filled exceeds the limit, the vehicle owner will have to pay the market price which is estimated at around RM 2.60.