KOTA KINABALU, June 23 -- The federal government's new MyKad-based targeted diesel subsidy system is expected to curb abuse and smuggling in the subsidised fuel supply chain, with authorities estimating savings of up to one billion litres of diesel annually.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the new mechanism, which takes effect in Sabah, Sarawak and Labuan on July 1, would link subsidised diesel purchases directly to eligible Malaysian citizens through their MyKad.

"We estimate that the implementation of this system can reduce leakages by as much as one billion litres of diesel per year. Besides reducing the government's subsidy burden, it will also help ensure a more stable domestic diesel supply," he told reporte...