By DayakDaily Team
KUCHING, July 8: The federal government has been urged to maintain the RON95 petrol subsidy for Sarawak, given the State’s vital role as an oil-producing region that has long contributed to Malaysia’s petroleum industry.
While expressing support for the national subsidy rationalisation initiative, Democratic Action Party Socialist Youth (DAPSY) Sarawak treasurer Wong King Yii emphasised that Sarawak’s vast oil and gas reserves have significantly supported Malaysia’s energy industry, and it is only just that the people of Sarawak benefit directly through continued fuel subsidies.
“Additionally, petrol consumption in Sarawak is relatively small compared to Peninsula Malaysia. Maintaining the RON95 subsidy here would not have a major impact on the national subsidy bill but would greatly ease the financial burden of our people,” he explained in a statement on Monday (July 7).
Wong also stressed that Sarawak’s unique socioeconomic landscape must be taken into account to avoid disproportionately burdening its people.
“I support the federal government’s move to rationalise the RON95 petrol subsidy as part of a broader effort to strengthen national finances and ensure subsidies reach those who truly need them. Reducing leakages and improving efficiency is necessary for the country’s long-term economic health,” he said.
However, he cautioned that a one-size-fits-all policy would unfairly affect Sarawakians, many of whom rely heavily on personal vehicles due to the Sarawak’s severely underdeveloped public transportation system.
“In places like the Klang Valley, the government has invested billions in MRT, LRT, and other public transit systems. In contrast, Sarawak lacks even basic alternatives—there are no trains, and bus services are extremely limited. For most Sarawakians, owning a car is not a choice, but a necessity,” he pointed out.
The rationalisation of petrol subsidies without regional considerations, he said, would intensify the cost-of-living pressures especially in rural and remote communities.
As such, Wong called on the federal government to maintain the RON95 subsidy for Sarawak; recognise the State’s underdeveloped public transport infrastructure and heavy dependence on private vehicles; honour Sarawak’s contributions as a petroleum-producing State; and ensure future subsidy reforms are discussed with the Sarawak government and local stakeholders.
“Sarawak is not asking for special treatment. We are asking for fair treatment based on our reality on the ground. Any national policy must reflect regional differences. I urge the federal government to ensure that subsidy reform does not come at the expense of ordinary Sarawakians,” he asserted.
The RON95 subsidy rationalisation, which is expected to begin in the second half of this year, follows the diesel subsidy rationalisation implemented in July 2024, in which Sarawak and Sabah were exempted due to the regions’ heavy reliance on diesel. The initiative aims to reduce government expenditure and redirect resources more efficiently.
According to recent reports in national dailies, the federal government is currently in the process of finalising the details of the RON95 subsidy rationalisation.
Finance Minister II Datuk Seri Amir Hamzah Azizan stated that, similar to the diesel subsidy rationalisation, the main objective is to plug leakages and ensure that businesses and the wealthy contribute their fair share.
The government is expected to adopt a technology-driven approach for RON95 fuel subsidies, with plans to implement identification card-based eligibility checks at petrol stations, extending the model used in the recent diesel subsidy reforms. — DayakDaily
