By DayakDaily Team
KUCHING, July 21: The federal government is consulting the Sabah and Sarawak governments on possible improvements to the targeted diesel subsidy mechanism following concerns over its implementation in the two States and Labuan.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said this in response to proposals to review and improve the diesel subsidy mechanism in Sarawak, Sabah, and Labuan.
He also added that the Ministry of Finance (MOF) was leading the engagement process as it was responsible for formulating fuel subsidy policies.
Armizan said several issues surfaced after the targeted diesel subsidy mechanism, which was first introduced in Peninsular Malaysia in 2024, was extended to Sarawak, Sabah, and Labuan.
“The federal government is ready to improve its implementation in collaboration with the State governments, which have a better understanding of the realities and needs of communities at the grassroots level,” he said, according to the Daily Express.
Armizan added that the MOF has begun meeting government agencies in Sarawak and Sabah to identify implementation challenges and formulate solutions that better reflected local conditions.
At the same time, Treasury secretary-general Johan Mahmood Merican would also meet elected representatives to obtain direct feedback on problems affecting their constituencies.
Armizan said state agencies could support federal authorities in registering and verifying eligible recipients, particularly in areas where federal agencies have limited access.
“When data collection and verification can be carried out effectively, I am confident the federal government is prepared to improve the mechanism so that subsidies truly reach those who need them,” he said.
He added that any revision to the subsidy mechanism must take into account the cost of living, efforts to curb subsidy leakages, and the government’s fiscal position.
Emphasising that blanket subsidies are no longer suitable, Armizan said assistance should instead be targeted at those who genuinely need support.
“Assistance for the underprivileged cannot be compromised. The government must continue helping them to ease the burden of the rising cost of living,” he said. — DayakDaily
