Consumer group welcomes new regulation targeting foreign-registered vehicles buying RON95

KUCHING (Jan 30): The Consumer Voice Association of Sarawak (Covas) has welcomed the government’s plan to draft new regulations targeting owners of foreign-registered vehicles purchasing RON95 petrol, describing it as a necessary step to close enforcement gaps and curb long-standing subsidy leakages, particularly in border areas.

Its president, Michael Tiong, said the move to hold buyers accountable, in addition to petrol station operators, reflects a more comprehensive and effective regulatory approach to safeguarding subsidies intended for Malaysians.

He commended Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali and the ministry for their ongoing multi-agency enforcement efforts and stakeholder engagement aimed at ensuring fair and transparent implementation.

“Covas fully supports measures that protect public subsidies and we stand ready to work with KPDN to promote awareness and responsible management of these subsidies,” he told The Borneo Post.

On Wednesday, Armizan told Parliament that the regulation is being drafted to strengthen enforcement and address subsidy leakages, particularly in border areas.

Under the proposed regulation, individuals purchasing subsidised petrol would also be held liable, whereas current laws apply only to petrol station operators.

“Regarding leakages in border areas, especially at petrol stations, the latest approach by KPDN is to introduce a new regulation under Section 6 of the Supply Control Act, prohibiting the purchase of RON95 by foreign-registered vehicles,” he said when responding to a query by Datuk Andi Muhammad Suryady Bandy (BN-Kalabakan).

KPDN aims to finalise and enforce the new regulation starting April 1.