Rural East Malaysia still needs diesel subsidy, Saratok MP urges against hasty withdrawal

KUCHING (Jan 22): The federal government has been urged not to rush into withdrawing diesel subsidies for Sabah and Sarawak, but to instead strengthen enforcement against leakages and smuggling, said Saratok MP Datuk Ali Biju.

Speaking during the Dewan Rakyat debate on the Motion of Thanks for the Royal Address, Ali said maintaining the retail diesel price at RM2.15 per litre in Sabah and Sarawak was necessary due to higher living costs caused by logistical, geographical, and infrastructure challenges.

“Do not withdraw the subsidy hastily because of leakages or smuggling. Instead, strengthen enforcement by the relevant authorities,” he said.

He noted that while Peninsular Malaysia moved away from full diesel subsidies in June 2024, Sabah, Sarawak, and Labuan continue to enjoy subsidised prices.

Ali said this differentiated approach was fair and reflected the realities faced by rural, interior, and coastal communities.

“This subsidy is not an ordinary form of assistance. It helps stabilise the prices of food, groceries, fares, transportation and daily services,” he said, adding that diesel subsidies played a significant role in easing the cost of living in the region.

He said the subsidy also supported key economic sectors, including fisheries and agriculture, benefiting small farmers, market traders and families in districts such as Sebuyau, Kapit and Lawas.

Addressing perceptions that Sabah and Sarawak were being treated “specially”, Ali said the policy was an acknowledgement of East Malaysia’s geographical and economic conditions.

He called on the government to retain the subsidy until comprehensive studies were completed and control infrastructure, including fleet card systems, were fully implemented, particularly in remote areas.

Ali also requested updated data from the government on diesel subsidies, including the amount channelled specifically to electricity generation stations, as well as the total diesel subsidy allocated to Sabah and Sarawak across all eligible sectors for 2025.