Orchestrating Malaysia's largest targeted subsidy ecosystem
BUDI MADANI proves how national subsidy programmes can be delivered accurately, securely and at scale.
Moving from blanket subsidy to targeted delivery
For years, subsidised fuel was available to everyone at the pump. The programme cost an estimated RM50 billion a year, but it was difficult to control. Non-eligible users consumed fuel, smuggling crossed borders and misuse went untracked.
Targeted delivery required more than a policy shift. It needed infrastructure that could verify eligibility, manage quotas and process payments across fuel stations, oil companies and citizens with mixed digital readiness.
Three realities that made this difficult
Different systems
Every oil company and fuel channel used its own systems, terminals and integrations. There was no common standard to build on.
Variable station operations
Fuel stations across the country had different counter setups, pump terminals, payment flows and connectivity.
Mixed digital readiness
Citizens had different levels of familiarity with digital tools. The solution had to work for someone using a smartphone and for someone who does not own one.
Ecosystem players
Oil companies, retailers, payment providers and government agencies were connected without each having to rebuild their systems.
The same process, whatever the channel
Every BUDI MADANI transaction follows the same five steps, whether the user pays with cash, card or e-wallet, and whichever station they visit.
1
User at pump
The user decides how much fuel they want to purchase
2
Verification
Their identity is verified, typically through their MyKad
3
Eligibility
The system confirms in real time whether they qualify for the subsidy
4
Customer pays
Payment is made by cash, card or e-wallet
5
Customer fills up
The user fills up at the subsidised price
What happens behind the scenes:
Identity presented
The user presents their government-issued ID (eg: MyKad, MyTentera) at the terminal, triggering the verification process.
Eligibility
check
The system verifies their eligibility in real time against programme records.
Access quota balance
The user's remaining monthly subsidy allocation is checked and confirmed before the transaction proceeds.
Authorise spending
Once eligibility and quota are confirmed, the pump is released for them to fill up.
Ways of accessing fuel subsidy
Eligible citizens can claim subsidies through multiple channels. Each one connects to the same verification and quota system.
IPT — Indoor payment terminal
Present an ID card at the cashier counter inside the station. The cashier processes the subsidy through the indoor terminal. This option works for citizens with low digital literacy or no smartphone.
OPT — Outdoor payment terminal
Authenticate at the fuel pump using a government-issued ID, with no cashier needed. This is faster at busy stations and gives users a self-service option.
TNG eWallet
Access the subsidy digitally through TNG eWallet. Identity is already verified through eKYC, so eligibility is confirmed automatically at payment. No physical ID needed.
Oil company app
Claim the subsidy through an oil company's app. Eligibility is checked in the app and the pump is activated once confirmed. This works within the oil company's existing systems without changing how they operate.
Managing programme rules in real time
As programme requirements evolve, rules need to be updated quickly across a nationwide network without disrupting live operations.
NADI TECH's logic product manages programme rules centrally, allowing changes to be applied across the entire ecosystem in real time without rebuilding any part of the infrastructure.
Quota configuration
Eligibility rules
Merchant participation
Live quota tracking
Proven through national-scale execution
Over 16 million
Citizens served
1.3 million
Transactions processed daily
More than 4,000
Fuel stations connected all over Malaysia
Less than 1 year
From programme design to nationwide execution
One control layer
Real-time rules, usage visibility and programme oversight
This model can apply to
Build your next programme with NADI TECH
From access to delivery to oversight, NADI TECH gives you the foundation to deploy with control, visibility and confidence.