By Shikin Louis
KUCHING, July 2: Kuching South City Council (MBKS) Mayor Dato Wee Hong Seng has urged the federal government to simplify the diesel subsidy application process, warning that bureaucratic hurdles are preventing thousands of Sarawak businesses from receiving assistance meant to ease rising operating costs.
Speaking after visiting the Ministry of Domestic Trade and Cost of Living (KPDN) office this morning, Wee said he received numerous complaints from business operators who had spent hours queueing to resolve issues involving the Subsidised Diesel Control System (SKDS).
He said many applicants encountered technical problems during registration, with some receiving messages stating that no eligible vehicle could be found despite operating legitimate commercial vehicles.
“We have about 35,000 eligible businesses, but only around 19,000 have registered.
“Since they are already eligible, why not make it automatic?” he said during a press conference held at MBKS building today.
Wee said only a handful of officers were available to assist applicants, resulting in long waiting times and repeated visits because of incomplete documentation or system issues involving multiple government agencies.
He warned that difficulties in obtaining subsidised diesel would significantly affect Sarawak’s small and medium enterprises (SMEs), many of which depend on diesel-powered four-wheel drives, vans and lorries for daily operations.
The increase in diesel prices from the subsidised rate to about RM3.97 per litre would raise transportation, logistics and project costs, eventually pushing up consumer prices, he said.
“When SMEs face higher operating costs, consumers will eventually bear the burden. Businesses also become less competitive,” he pointed out.
Wee also questioned why appeals from companies registered as private limited companies (Sdn Bhd) appeared to face greater difficulty than those registered as sole proprietorships or partnerships.
Thus, he called on the federal government to review the vehicle eligibility criteria under SKDS, resolve system issues that reject eligible commercial vehicles and ensure Sarawak businesses receive fair access to diesel subsidies.
At the same time, Wee said Sarawak’s diesel already contains about 20 per cent biodiesel, making production costs lower than in Peninsular Malaysia.
He suggested this difference should be taken into account when determining subsidy formulas.
“We also appeal to the federal government to take into consideration that diesel in Sarawak contains 20 per cent biodiesel, resulting in lower costs. This should be factored into the subsidy formula.
“If the aim is to reduce subsidy costs, then Peninsular Malaysia could also have 20 per cent biodiesel in its diesel, like Sarawak,” he explained.
Describing SMEs as the backbone of Sarawak’s economy, Wee said policies intended to reduce business costs should support enterprises rather than create additional obstacles.
“We must stand with the rakyat during difficult times. If people are suffering, we should simplify the process instead of making things harder,” he said.
He added that MBKS councillors would continue engaging affected businesses and assist them with registration and subsidy appeals where possible. — DayakDaily
