Fuel Subsidy Implementation

Ok, the proposed fuel subsidy initiative which is supposed to limit fuel subsidy to those really eligible.

'OutSyed The Box' creatively and analytically paints a better picture of what it is going to be, check out here.

"What this means is that owners of cars below 2000cc will not see any reduction in their living expenses. They will still pay RM1.80 per litre for RON95 like they do today - no change there, except they will now have to flash their MyKads every time they buy petrol, because they will only get say 100 litres of subsidised petrol a month."

What he said makes sense and fair.

For me, I think that the IT system to support that kind of initiative is really going to be a hard hard job.

And this may not work because there will be major changes to existing IT systems of petrol kiosks and it cannot afford to go wrong by 1st of May. I think the reason for delay of the implementation is due to the IT system.

And even if they managed to get it up by 1st of May, it is not tested as well given the short time frame.

What about those people whose MyKad is faulty, how do they able to claim for the subsidy on real-time basis ?

And let's say the roll-out failed, what will happen ?

Everybody will have to pay for RM 2.10 per liter ? Maybe.

So what's next ?

Based on my analysis, I think eventually they will scrap the idea of real-time and resort to reimbursement system.

So, I predict that this whole initiative will need some sort of receipt validation system as a backup plan to the proposed real-time validation system which supposed to come in phases. What I mean is that shouldn't non real-time system come first before the real-time system will slowly take over ?

To implement a real-time nationwide system is really not easy, just think about the case of e-Filling: LHDN.

This is probably the 4th or 5th (year) into roll-outs and it is getting better but still with issues. Do you remember all the issues with the first roll-out ?

And this proposed fuel subsidy system is many times more complex, real-time than the e-Filling (LHDN) system which involves:
  • Telecommunication (hardware & software)
  • Online system (software)
  • MyKad (hardware)
  • MyKad reader (hardware and software)
  • Credit card (hardware, software, banks, etc)
  • etc

I think suddenly, all petrol kiosks will need to hire at least one IT executive. Just like the old days when every company will have an IT executive stand by all the computer problems such cannot print, cannot read, cannot start, cannot stop, printer out of paper and etc.

Really hard job.