Malaysia says it's considering using its chip-based national identity card to prevent visitors from Singapore and Thailand buying cheap subsidised fuel meant for locals.

Its latest plan comes as the government begins radically reviewing its fuel subsidies, expected to cost 13 billion dollars this year if oil prices hover around $120 per barrel.

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

Singaporeans often make day trips across the causeway linking the island state to Malaysia to fill their petrol tanks and buy groceries.

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

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