Decision to exclude Sabah, Sarawak not based on closed-minded politics

KOTA KINABALU (June 29): The core of the Federal government’s decision to exclude Sabah and Sarawak from the targeted diesel subsidy for the time being is not based on closed-minded politics, said Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali.

When asked to comment on Bersatu’s reported dissatisfaction on the exclusion of the two Bornean states, he said the move was done for the benefit of the people.

Armizan, who is also Papar Member of Parliament and Gabungan Rakyat Sabah deputy secretary-general, explained their rationale behind the decision.

“First, we do not want to rush things as the targeted diesel subsidy is quite a large reform – this is why it is being carried out in phases. We will observe the implementation in the Peninsular and make improvements as needed. That is why even though it was announced by our Prime Minister in the Budget 2024 presentation last year, we only implemented it in June this year.

“Second, the usage of diesel fuel in Sabah and Sarawak is high, so many would be affected if they are included in the targeted subsidy. Why is the usage high? Because of geographical and infrastructure factors which demands many people in the two states, especially in rural or out-of-city areas, to use four-wheel drive vehicles which uses diesel.

“So I hope that there are no parties trying to politicise the government’s decision in the matter. I think certain quarters who are dissatisfied have stated that they fight for the rakyat, so I am saying that our reasoning for the targeted diesel subsidy exclusion is to benefit the rakyat – the core in our decision is not based on close-minded political considerations,” he said.

Armizan told reporters this after witnessing the handing over of a 24-seater coaster and a multi-purpose tipper lorry donated by Sinyi Group at Langkah Syabas resort, Papar on today.

Despite the subsidy exclusion, he said Prime Minister Datuk Seri Anwar Ibrahim had stressed for KPDN and other relevant agencies to ensure that they overcome issues of leakages, misappropriation and smuggling of diesel in Sabah, Sarawak and Labuan.

The responsibility in this approach, he said, does not solely lie with his ministry but also other agencies such as Malaysian Maritime Enforcement Agency and Customs Department, which have their respective jurisdiction of power and legal provisions.

“Before the implementation of the targeted diesel subsidy, we had held a workshop involving all agencies in Sabah, and next month, I will go to Sarawak for the same workshop to see how we can improve the Standard Operating Procedures (SOP) and rules to make sure that we can resolve this issue.

“And even though Sabah and Sarawak are not included in said implementation for now, among the suggestions we received is for certain sub-sectors in the two states to be imposed with the use of fleet cards. However, this is still in the discussion stage and we have not made a final decision in the matter.

“In 2023, the Federal government had spent RM14 billion for diesel subsidies nationwide, with RM3.6 billion of the figure spent on Sabah and Sarawak alone, in which we are aiming for the same allocation for the two states this year. The Federal government has actually given a lot of assistance to them,” he said.

On June 20, Bersatu Youth chief Wan Ahmad Fayhsal Wan Ahmad Kamal had reportedly stated that the government’s move to only implement the targeted diesel subsidy in the Peninsular is a “coward’s policy”.

The Machang Member of Parliament claimed that it was done because the government was afraid of losing support from Sabah and Sarawak, further claiming that such a move was seen as bullying the Peninsular.

Also present at the handover ceremony were Kawang assemblyman Datuk Ghulam Haidar Khan Bahadar, Papar District Officer Mohd Fuad Abdullah and Sinyi Travel & Tourism Development Group director Howard Chou.