Sabah, Sarawak will be exempted despite lawsuit

KOTA KINABALU (Oct 12): The government is not planning on backing down from its stand to exempt Sabah and Sarawak from the targeted diesel subsidy implementation despite facing a potential lawsuit.

Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali confirmed to have received a writ of summons around three weeks ago, which named himself, Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim, Transport Minister Anthony Loke, Economy Minister Rafizi Ramli and the Federal Government on the basis of being unfair due to not implementing the targeted subsidy concurrently nationwide.

Although he did not specify the amount, Armizan said the lawsuit involves millions of ringgit, and his office will consult with the Attorney-General’s Chambers for further action.

“As I’ve said before, we will defend our stand. It is their right to bring the matter to court, and the government will answer – this is government policy, a policy which is based on facts.

“What are the facts? First, we implemented the targeted diesel subsidy in the Peninsular before Sabah and Sarawak to first observe its implementation.

“Second, infrastructure, road and geographical factors demand people in Sabah and Sarawak to use diesel fuel-powered vehicles, leading to their higher usage.

“And the most important reason which many might not understand is the price gap of goods and services between the Peninsular and Sabah and Sarawak, which is quite big.

“So we hope that they can understand. Whatever it is, we will answer, because it is not an act of discrimination – far from it,” he told reporters after visiting the site for the upcoming Madani Rakyat Sayangi Sabah programme near Likas here on Saturday.

Armizan denied that Sabah and Sarawak’s exclusion from the controversial targeted diesel subsidy was made due to political factors as claimed by several members of parliament during parliamentary sittings, stressing the reason it was taken is due to the Bornean states’ unique situations.

He said this is a sensitive issue and no matter how hard his side tries, it would surely have certain effects, but despite the chaotic early stages of the subsidy implementation which has also become campaign fuel in several recent by-elections, overall progress has been going well so far.

“The subsidy was never stopped, not even in the Peninsular. It is just done in a more targeted manner now, where it is channeled via fleet cards and cash aid to those who really need it instead of selling in bulk at gas stations, so there is no discrimination whatsoever.

“So the fact of the matter is that deserving groups, including private diesel-powered vehicle owners, are benefitting from the targeted subsidy in the Peninsular, whether through the Subsidised Diesel Control System fleet cards or Budi Madani RM200 cash aid,” he said.