Fed Cabinet approves 300-litre monthly diesel subsidy for small businesses, local contractors

A car filling up diesel at a petrol station in Kuching. Photo credit: DayakDaily
Advertisement

By DayakDaily Team

KUCHING, July 19: Small companies and local contractors previously excluded from existing subsidised diesel schemes will now receive a monthly allocation of 300 litres of subsidised diesel through fleet cards following federal Cabinet approval.

According to Bernama, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the immediate measure is intended to assist micro-enterprises that had been unable to access diesel assistance because they applied under individual names rather than company registrations.

Advertisement

The assistance is specifically targeted at diesel-powered vehicles registered under partnership companies and sole proprietorships for business use, helping to ease operating costs following the implementation of the targeted diesel subsidy programme in Sabah, Sarawak and Labuan on July 1.

Armizan explained that many of these businesses had fallen outside the existing Subsidised Diesel Control System (SKDS), which currently covers only the public transport sector and the transport of goods and essential items, despite relying on diesel-powered vehicles for their day-to-day operations.

“These small companies are not included under the two sectors of the Subsidised Diesel Control System (SKDS), which are the public transport sector and the goods or consumer necessities transport sector.

“They use those vehicles for their small business needs,” he told reporters after officiating the Madani Foster Village Programme at Kampung Sekalong, Menumbok on Saturday (July 18).

Meanwhile, he said the federal government remains open to refining the implementation of the targeted diesel subsidy programme in Sabah, Sarawak and Labuan, with any improvements guided by three key considerations: reducing the cost burden on the people, preventing subsidy leakages and maintaining the government’s fiscal position.

He emphasised that any refinements to the mechanism must strike a balance between protecting consumers, curbing abuse of the subsidy system and ensuring the long-term sustainability of public finances.

To strengthen implementation, particularly in rural and interior areas, state-level agencies will be mobilised to assist with registrations and verify eligible recipients so that no deserving businesses are left out.

Separately, Armizan announced that Kampung Sekalong had received RM500,000 under the Madani Foster Village Programme to carry out five community projects. The allocation will fund the construction of an open multipurpose hall, upgrades to village roads, repair and construction of culverts, installation of solar-powered streetlights and the development of a village landmark.

The Papar MP said work on the projects would begin immediately and is expected to be completed within two to three months.

He added that Kampung Sekalong is the third village selected under the programme after Mukim Kaiduan in Papar in 2024 and Mukim Tikam Batu in Kedah last year. — DayakDaily

Advertisement