Solidarity essential to tackle global energy supply crisis

Analysts says diesel subsidy retargeting can be a shared responsibility between peninsular Malaysia and Sabah and Sarawak as global uncertainty disrupts oil supplies.

Although oil flows through the Strait of Hormuz have started to recover, shipments from the Middle East have yet to return to pre-conflict levels, leaving supply uncertain, raising price risks.

Universiti Malaya’s Awang Azman Pawi said the conflict in West Asia had intensified pressure on Malaysia’s fuel supply, making prolonged blanket subsidies increasingly unsustainable.

He said subsidy retargeting should be viewed as a test of national solidarity and “mature federalism”, rather than simply a fuel price adjustment.

“The retargeting of diesel subsidies reflects the ability of leaders from Sabah, Sarawak and the peninsula to share responsibility in implementing an unpopular but necessary measure to protect public finances and curb leakages,” he told FMT.

Awang Azman said Sabah and Sarawak’s participation should not be framed as the two states being compelled to adopt a peninsula-centric model.

Instead, he said, it demonstrated their willingness to work with Putrajaya to address a national challenge at a time when resources must be safeguarded against smuggling and abuse.

However, he stressed that such cooperation must be reciprocal.

“Solidarity does not mean surrendering state interests to the federal government. It must be built on negotiations, evidence and recognition of each region’s unique needs,” he said.

From July 1, eligible recipients will receive up to 200 litres of subsidised diesel each month at RM2.10 per litre through MyKad. Owners of selected pickup trucks and jeeps may also apply for an additional 100 litres.

The subsidised diesel scheme has also been extended to about 70,000 commercial vehicles in Sabah and Sarawak, as well as riverboat operators and generator-set owners in interior areas.

Sabah deputy chief minister Masidi Manjun has said the federal government took into account geographical and socioeconomic conditions, usage patterns, and the dependence of rural communities on four-wheel-drive vehicles.

He also said the mechanism could be adjusted if Sabah’s specific circumstances warranted change.

Universiti Teknologi Mara’s Tony Paridi Bagang said the support of the Sabah and Sarawak governments reflected their commitment to tackling subsidy leakages through negotiations that respected state rights and interests while allowing for policy adjustments.

He said the state governments must continue monitoring the impact on rural and interior communities and seek improvements if implementation issues emerge.

Awang Azman said national goals could be pursued without imposing a one-size-fits-all approach across the country.

“True solidarity is achieved when Sabah, Sarawak and the peninsula jointly shoulder national challenges while Putrajaya continues to listen and adapt implementation to local needs,” he said.

He added that the public would be more willing to accept difficult decisions if leaders could clearly demonstrate the benefits, safeguards and tangible outcomes of the negotiations.