By DayakDaily Team
KUCHING, Mar 28: Minister of Domestic Trade and Cost of Living (KPDN) Datuk Armizan Mohd Ali has dismissed claims that the federal government is being “unfair” in keeping bulk diesel subsidies for Sabah, Sarawak, and Labuan.
In a news report by NST, he explained that targeted diesel subsidies are planned, but the rollout will be done in stages.
“The government’s policy from the start has been to reform subsidies through a targeted approach to ensure aid reaches eligible groups and sectors accurately.
“Subsidy targeting is a major reform that requires meticulous planning and phased implementation,” he said after the Sabah government Aidilfitri reception at the Sabah International Convention Centre (SICC) today.
He said targeted diesel subsidies began in the peninsula in 2024, while the nationwide RON95 petrol subsidy started in 2025.
Armizan said the Finance Ministry is reviewing the plan for targeted diesel subsidies in the three regions before further talks with state authorities.
“Fundamentally, diesel subsidies will continue but through targeted methods to curb leakages, including misappropriation and smuggling,” he said.
He added that the implementation would draw from existing models such as Budi95, Budi Madani, the Subsidised Diesel Control System (SKDS), and the Subsidised Petrol Control System (SKPS).
Armizan explained that the delay in targeted subsidies for the three regions is due to local factors, including high diesel use, geography, and a wide price gap for basic goods. High logistics costs from the peninsula also necessitate bulk subsidies.
“For instance, transport costs to Sabah and Sarawak are higher than to most major trading hubs in the region, such as China and India, which contributes to the price difference of goods in the market,” he said. — DayakDaily
