Sabah and Sarawak get full diesel subsidies, not unfair, because the cost of living is higher and the roads require diesel vehicles

The targeted diesel subsidy has is yet to be implemented in Sabah, Sarawak and Labuan for specific valid reasons, and not because of double standards or unfair treatment, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

Rationalization of diesel subsidies was implemented in Peninsular Malaysia on June 10 this year, and saw the retail price of diesel fuel rise to RM3.35 per liter from the current subsidized price of RM2.15 per liter in effect nationally since February 2021which still applies to East Malaysia.

The first reason for the delay in its implementation in these states is the difficulty in profiling to ensure that the aid reaches those who are actually in need, which has led to its pilot implementation in Peninsular Malaysia, reports Bernama.

“In Peninsular Malaysia, we have a clearer target group, and the government can channel subsidies through the channels Subsidized diesel control system (SKDS) under the Budi Madani initiative” said Armizan.

The second reason was for reasons related to the logistics and geography of Borneo, on which its inhabitants depend diesel vehicles out of necessity instead of choice. The third reason is the long-standing disparity between Peninsular Malaysia and East Malaysia in the price of goods, which the report said has not yet been fully addressed.

Armizan noted that the ministry’s price monitoring officers collected prices for more than 480 items between July and September, and found that 65% to 68% of the goods surveyed were significantly more expensive in Sabah and Sarawak compared to Peninsular Malaysia.

Armizan reiterated his commitment as a minister and as Sabahan to ensure this subsidy leakage be addressed effectively in these regions.

“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.

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