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The targeted diesel subsidy has yet to be implemented in Sabah, Sarawak and Labuan for specific valid reasons, and not due to double standards or unfair treatment, said the minister of domestic trade and cost of living Datuk Armizan Mohd Ali.
Diesel subsidy rationalisation was implemented in Peninsular Malaysia on June 10 this year, and saw the retail price of diesel fuel climb to RM3.35 per litre, compared to the current subsidised price of RM2.15 per litre which had been in place nationwide since February 2021, which still applies to East Malaysia.
The first reason for the delay in its implementation in these states is the difficulty in profiling to ensure that assistance reaches those who are genuinely in need, leading to its pilot implementation in Peninsular Malaysia, reported Bernama.
“In Peninsular Malaysia, we have a clearer target group, and the government can channel subsidies through the Subsidised Diesel Control System (SKDS) under the Budi Madani initiative,” Armizan said.
The second reason was for reasons related to Borneo’s logistics and geography, where its residents rely on diesel-powered vehicles out of necessity rather than choice. The third reason is the long-running disparity between Peninsular Malaysia and East Malaysia in the price of goods, which has yet to be fully addressed, according to the report.
Armizan noted that the ministry’s price observation officers collected prices for more than 480 items between July and September, and have found that 65% to 68% of the goods surveyed were significantly more expensive in Sabah and Sarawak compared to Peninsular Malaysia.
Armizan reiterated his commitment as a minister and as a Sabahan to ensure that subsidy leakage in these regions are effectively addressed.
“The diesel subsidy allocation for Sabah, Sarawak, and Labuan reaches RM3.6 billion annually, which is a substantial amount. It is our shared responsibility to ensure there are no leakages,” he added.
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