SCCI has reservations on practicality of govt’s diesel subsidy rationalisation

KUCHING (May 23): Sarawak Chamber of Commerce and Industry (SCCI) supports the Unity Government’s fuel subsidy rationalisation initiative but still has some reservations over its practicality on the business aspect.

SCCI said it noted that on the surface, exempting Sabah and Sarawak from the fuel subsidy rationalisation, which is now affecting diesel, suggests that it would be status quo in Sabah and Sarawak.

“This may not be the case as any rise in price of goods and services in Peninsular Malaysia would slowly but surely creep its way into Sabah and Sarawak,” SCCI secretary Albert Tang told The Borneo Post yesterday.

“For instance, freight charges between West and East Malaysia, unless exempted, would likely increase. It should be noted that the bulk of consumer products and a large quantities of industrial and construction materials come from Peninsular Malaysia.”

He said Sabah and Sarawak should be prepared to meet the increase in the cost of doing business.

Tang was commenting on the diesel rationalisation announced by Prime Minister Datuk Seri Anwar Ibrahim in a televised address on Tuesday night.

He pointed out Anwar had said that part of the RM4 billion savings from the diesel rationalisation would be used to enhance benefits of Sumbangan Asas Rahmah (Sara) and Sumbangan Tunai Rahmah (STR) to support the low-income group from the effects of inflation.

Tang said SCCI welcomes this and hopes that such enhancements of benefits under Sara and STR are also applicable to Sabah and Sarawak to support the low-income group.

SCCI supports the government’s initiative to rationalise its subsidy to only the targeted group and not to just everyone, he said.

At the same time, SCCI urged the government to be prudent in its spending and to tackle problems of leakages and wastages of taxpayers money, he added.