KUALA LUMPUR, MALAYSIA - MALAYSIA on Sunday said it was considering using its chip-based national identity card to prevent visitors from Singapore and Thailand buying cheap subsidised fuel meant for Malaysians.

Its latest plan comes as the government begins radically reviewing its fuel subsidies, expected to cost RM43 billion (S$19 billion) this year if oil prices hover around US$120 per barrel.

Malaysia heavily subsidises petrol, diesel and gas as well as 21 food items but rising global prices and controls have triggered severe shortages, as well as smuggling across its porous borders and long coastline.

'The technical features are there on the MyKad (Malaysian identification card) and can be integrated with fuel pumps so they can be used to identify the person,' said Domestic Trade and Consumer Affairs Minister Shahrir Samad.

'We are looking to see if we can use it on the fuel pumps so that only Malaysian citizens get the subsidy,' he added.

'We should not be subsidising fuel and goods for foreigners like Singaporeans and Thais. Those without MyKads can continue to buy the fuel at the pumps but at non-subsidised prices.'

Singaporeans often make day trips across the Causeway to Johor Baru to fill their petrol tanks and buy groceries, which are cheaper here.

Smuggling of supplies of cooking oil, petrol and flour is also rife across Malaysia's porous northern border with Thailand.

Mr Shahrir said the government was also developing a subsidy management system that would ensure cheap fuel went to the poor to prevent wastage of the subsidy.

'If we can save money on fuel subsidies, we can use this to fund anti-inflationary projects to keep prices and costs low for Malaysians,' he said. - AFP