Malaysia open to reviewing diesel subsidy quotas in rural Sabah

The federal government is prepared to examine suitable mechanisms for implementing diesel subsidy quotas in rural areas, especially in Sabah, in cooperation with the state government. Second Finance Minister Datuk Seri Amir Hamzah Azizan affirmed the government's openness to improving targeted diesel subsidies to ensure they benefit the intended recipients.

Amir Hamzah acknowledged the difficulties faced by rural residents who depend on diesel vehicles for transportation. He emphasized that any enhancements must be implemented through appropriate mechanisms. "Not only in Sabah, but nationwide. If there is a mechanism that allows it, we will look into it," he stated, highlighting the importance of state government cooperation and feedback to develop effective solutions.

He further explained that diesel vehicles used for business purposes, such as transporting passengers or goods, can apply for higher quotas under the Subsidized Diesel Control System (SKDS) managed by the Ministry of Domestic Trade and Cost of Living. The use of fleet cards allows for the assessment and adjustment of diesel quotas based on business operational needs. For private use, the basic quota is 200 liters, with an additional 100 liters available upon application. However, vehicles used as primary transport in rural areas, like taxis or rental cars, can be classified as business use and are eligible for SKDS.

The government will continue to evaluate proposals to ensure the targeted diesel subsidy program meets the actual needs of the people without compromising efforts to curb leakages. Amir Hamzah also reported that the targeted diesel subsidy implementation has been smooth so far, with over 220,000 diesel vehicle owners nationwide having successfully increased their quotas from 200 to 300 liters.