Three reasons why targeted diesel subsidies have not been implemented in Sabah, Sarawak, says Armizan

TAWAU: The targeted diesel subsidy has not been implemented in Sabah, Sarawak and Labuan, not because of double standards or unfair treatment, but because of specific, valid reasons, says Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali.photo).

He explained that the first reason is the difficulty in profiling to ensure that aid reaches those who are actually in need, which led to a pilot implementation first in Peninsular Malaysia.

“In Peninsular Malaysia, we have a clearer target group, and the government can channel subsidies through the Subsidized Diesel Control System (SKDS) under the Budi MADANI initiative,” he told reporters after the Kita Gempur @ Tawau program with strategic consumer partners here on Monday (October 28).

The second reason, he noted, has to do with the logistics and geography of Borneo, where residents rely on diesel vehicles out of necessity, rather than choice, given the terrain.

The third factor, he added, is the long-standing and significant price differential for goods in Sabah, Sarawak and Labuan compared to Peninsular Malaysia, an issue that has not yet been fully addressed.

“I recently presented a note to the Cabinet on the monitoring by our price observation officers. Over three months, in July, August and September, we collected data on 480 items.

“We then compared prices and found that 65 to 68 percent of these goods were significantly more expensive in Sabah and Sarawak than in Peninsular Malaysia,” he said.

Armizan further explained that, as a minister and as a Sabahan, he is committed to ensuring that subsidy leakages in these regions are effectively addressed.

“The diesel subsidy allocation for Sabah, Sarawak and Labuan amounts to RM3.6 billion annually, which is a significant amount. It is our shared responsibility to ensure that no leakages occur,” he added.

He also reminded all parties not to blame the government when measures are taken to tackle subsidy abuse, given the recurring problems of leakage. – Bernama