Organisations view Putrajaya’s decision to continue diesel subsidies in S’wak, Sabah positively

KUCHING (May 22): The federal government’s decision to exempt Sarawak and Sabah from diesel subsidy rationalisation has been received positively by local organisations.

Sarawak Federation of Chinese Associations president Datuk Richard Wee welcomed the move as favourable in the short term.

“However, long-term subsidies are never a solution to address the issue of prices of goods and services as it tends to distort the market place and may lead to abuse by unscrupulous individuals.

“As for the petrol and diesel, my personal view is that the government can have measures taken to provide a softer landing to ensure it will prevent the prices to spike and cause further inflationary pressure,” he told The Borneo Post when contacted today.

Dayak Chamber of Commerce and Industry (DCCI) secretary-general Libat Langub said the decision is greatly welcomed in view of the unique needs of residents of the two territories, where the need for diesel is intrinsic to daily life.

“The diesel subsidy has played an important role in alleviating the financial burden faced by many motorists and residents, especially those in the rural areas in the two territories.

“Due to rugged terrain and challenging road conditions, people in these areas have no choice but to opt for four-by-four vehicles, which run on diesel,” he said.

Libat pointed out diesel is an essential daily commodity for many families in Sarawak.

“And the said rationalisation, if implemented in Sarawak, would have drastic economic consequences, especially on the rural people as costs of things would increase tremendously as a result thereof,” he added.

In a televised address to the nation last night, Prime Minister Datuk Seri Anwar Ibrahim announced the exemption of Sarawak and Sabah from the new diesel subsidy rationalisation programme.

He said the scheme, which had been agreed upon by the Cabinet earlier in the day, would solely impact consumers in the peninsula.

He explained the Cabinet opted to postpone implementation in Sarawak and Sabah as it could potentially have a burdensome impact on the people.