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Targeted diesel subsidy: ‘No impact on essential goods prices in Sabah, Sarawak and Labuan’
Published on: Monday, June 10, 2024
By: Bernama
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Targeted diesel subsidy: ‘No impact on essential goods prices  in Sabah, Sarawak and Labuan’
PUTATAN: The targeted diesel subsidy measure in Peninsular Malaysia, starting today, should not have a ripple effect causing an increase in the prices of essential goods in Sabah, Sarawak, and Labuan, said Communications Minister Fahmi Fadzil.

Fahmi, who is also the Unity Government spokesman, said this is because the government is supporting  traders and those involved with various initiatives, especially through the Subsidised Diesel Control System 2.0 (SKDS 2.0) and the Budi Madani initiative, which among other things, help cover the transportation costs of the goods involved.

He said that through SKDS 2.0, 23 categories of vehicles are eligible for fleet card assistance, including the transportation of food, essential and daily items, allowing them to purchase diesel at the subsidised price of RM2.15 per litre while those eligible receive RM200 per month through Budi Madani.

"This issue does not have an impact on Sabah, Sarawak, and Labuan... I see it more as whether there could be unforeseen negative effects by the Federal Government. But as we have explained, we have taken into account and evaluated this matter.

“We strive to ensure that all vehicles involved in the supply chain of goods, including the delivery of goods to Sabah, Sarawak, and Labuan, continue to receive the subsidy, while individuals are also given the opportunity to receive RM200 per month (through Budi Madani),” he said here today.

He told this to reporters after attending the "Sembang Santai Komuniti Madani" event for the Putatan parliamentary constituency, which was also attended by Information Department director-general Julina Johan and Sabah Information Department director, Jainisah Mohd Noor.

Fahmi said that some parties have posted on social media claiming that traders are affected by transportation costs due to the targeted diesel subsidy measure.

He advised these parties to seek information and apply for SKDS 2.0 and Budi Madani.

He added that no party should take advantage of the situation by raising prices excessively, as they still benefit from the diesel subsidy through SKDS 2.0 managed by the Ministry of Domestic Trade and Cost of Living (KPDN).

“We request that if there is a noticeable spike (in prices), any party taking advantage by raising prices even though Sabah, Sarawak, and Labuan are not affected, inform KPDN for immediate enforcement,” he said.

Meanwhile, when asked about the progress of telecommunications tower construction in Sabah, he said that positive developments were observed last month as the companies involved managed to complete more towers than targeted.

“One company promised 21 towers by May but successfully completed 26 towers, and I welcome this new spirit. We will continue to monitor this and expedite the construction to enhance telecommunications facilities in Sabah,” he said.

He noted that part of the construction is under Phase 1 of the National Digital Network Plan (Jendela), which is not commercial in nature, but rather funded to provide internet access to the people, thus requiring the construction to be carried out responsibly.

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