Three reasons targeted diesel subsidy hasn’t been implemented in Sabah, S’wak – Armizan

TAWAU (Oct 28): The targeted diesel subsidy has not been implemented in Sabah, Sarawak, and Labuan not because of double standards or unfair treatment, but due to specific, valid reasons, emphasised the Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali.

He explained that the first reason is the difficulty in profiling to ensure assistance reaches those genuinely in need, leading to a pilot implementation in Peninsular Malaysia first.

“In Peninsular Malaysia, we have a clearer target group, and the government can channel subsidies through the Subsidised Diesel Control System (SKDS) under the Budi MADANI initiative,” he told reporters after the Kita Gempur @ Tawau programme with strategic consumer partners here Monday.

The second reason, he noted, relates to Borneo’s logistics and geography, where residents rely on diesel-fueled vehicles out of necessity rather than choice, given the terrain.

The third factor, he added, is the long-standing and significant price disparity for goods in Sabah, Sarawak, and Labuan compared to Peninsular Malaysia, an issue that has yet to be fully addressed.

“Recently, I presented a note to the Cabinet regarding monitoring conducted by our price observation officers. Over three months in July, August, and September we collected data on 480 items.

“We then compared the prices and found that 65 to 68 percent of these goods were significantly more expensive in Sabah and Sarawak than in Peninsular Malaysia,” he said.

Armizan further explained that he is committed, as both a minister and a Sabahan, to ensuring that subsidy leakages in these regions are effectively addressed.

“The diesel subsidy allocation for Sabah, Sarawak, and Labuan reaches RM3.6 billion annually, which is a substantial amount. It is our shared responsibility to ensure there are no leakages,” he added.

He also reminded all parties not to blame the government if actions are taken to address subsidy misuse, given the recurring issues with leakage. – Bernama