Subsidies will not be completely withdrawn – Armizan

KOTA KINABALU (Dec 31): The government’s targeted subsidy policy does not mean that the subsidies will be completely withdrawn, said Domestic Trade and Costs of Living Minister Datuk Armizan Ali.

He explained that instead it involves reforms in the provision of subsidies and social aid to the people, and the Federal Government is committed to implementing a policy which comes with guaranteed social aid, including targeted cash aid subsidies.

Armizan said the core of the targeted subsidy policy and social aid reform implementation is the Central Database Hub (Padu) which will be launched by the Prime Minister on January 2, 2024, and he urged the people to register for the system and at the same time verify individual and household profile information.

“The government will give the people three months until March 31 2024 to register for the system.

“I am also urging all relevant parties to cooperate. Not just federal agencies, but cooperation from all State Governments, down to the district and village levels, is essential.

“The government will also provide space for both manual and online registration to ensure the communities in rural areas are not left behind. All Village Development and Security Committees (JPKK) are called on to assist in this effort,” he told reporters after attending the Samat Family Fun Hike event at Bukit Bendera, Papar on Sunday.

Armizan, who is also Papar Member of Parliament (MP), said his ministry is committed to helping the government implement the targeted subsidy agenda with a commitment that the policy will be accompanied by guaranteed social aid for those in need.

He said the form and amount of social aid will not only involve the aspect of income but also the amount of dependent commitments to address emerging issues related to the cost of living, adding that the consideration for the amount of social aid will be based on the PADU data.

Armizan said the ministry would implement stricter and more comprehensive enforcement next year apart from targeted subsidies.

The minister said he wants to focus on fighting leakages, misappropriation and the smuggling of subsidised goods such as diesel and other problems.

He said these crimes were an act of sabotage to the government giving subsidies and protection to people who needed it in this country.

“So for next year, we want to go all out to fight any form of wrongdoings for matters under our jurisdiction,” he added.

“For those still thinking about committing any offence, stop it. Find other forms of income that are legal,” Armizan said.

Asked about continuous smuggling attempts of subsidised and controlled goods in Sabah, he said this was an ongoing fight and effort by the government to address the issue.

“For Sabah, we understand that we have such a huge sea border, so that is why we have so many enforcement and monitoring mechanisms in place,” he said.

Armizan said this was among the reasons why the Federal government also came up with the SKDS 2.0 (subsidised diesel control system 2.0) and the introduction of fleet cards for gas stations and customers come 2024.

“But this fleet card system is designed for use in peninsula Malaysia first because Sabah and Sarawak do not have the targeted diesel subsidy yet, so Sabah and Sarawak will have other mechanisms,” he said.

He called for the community to work with the government to ensure that there would be no more leakages and smugglings in future.