Kuala Lumpur: Both government and opposition politicians as well as civic groups continue to call on the Federal Government to review its diesel subsidy policy to better reflect the realities in Sabah and Sarawak.
Sandakan MP Vivian Wong Shir Yee, speaking during the parliamentary debate said global supply chain disruptions were hitting Sabah harder than peninsula because of the state’s dependence on imported goods and higher logistics costs.
She said geopolitical conflicts, supply chain disruptions, rising shipping costs and global economic uncertainty had driven up the prices of food, raw materials and daily necessities.
“As a state that depends heavily on sea and land transportation for supplies, every increase in logistics costs in Sabah is eventually passed on to consumers,” she said, Tuesday.
Wong said she received numerous complaints from traders, farmers, fishermen and small business operators in Sandakan over rising operating costs, forcing many to raise prices.
She noted that several industries in Sabah, including tourism, were either excluded from the subsidy programme or did not qualify for assistance, placing additional pressure on businesses and affecting local supply chains.
Wong also stressed that diesel-powered four-wheel-drive vehicles were a necessity rather than a luxury in Sabah’s rural and interior areas.
“Many roads in the interior are unpaved, muddy and frequently flooded. People depend on four-wheel drives to send their children to school, seek medical treatment and transport agricultural produce,” she said.
Wong questioned whether the current MyKad-based diesel subsidy quota system adequately met the needs of Sabahans, noting that residents in districts such as Tongod, Kinabatangan, Beluran, Nabawan and Pensiangan often travel hundreds of kilometres each week.
“A return journey alone may use up most of their subsidised quota,” she said.
Warisan Vice President Datuk Junz Wong said the nationwide rationalised diesel subsidy mechanism was another example of Putrajaya imposing a peninsula-centric policy on Sabah without properly accounting for the State’s geographical, economic and logistical realities.
The Tanjung Aru Assemblyman said Warisan supported the Federal Government’s efforts to curb diesel smuggling and subsidy leakages but pointed out that honest Sabahans and legitimate businesses should not become collateral damage because of enforcement weaknesses elsewhere.
Wong said that before the latest rationalisation exercise, Sabahans benefited from a practical diesel subsidy arrangement that reflected the State’s dependence on diesel powered transport and machinery, particularly in rural and interior areas where four-wheel drive vehicles are a necessity rather than a luxury.
“Today, that practical arrangement has been replaced with quotas, applications, fleet cards and administrative requirements that have made it increasingly difficult for many genuine diesel users, especially small and medium enterprises, to continue enjoying subsidised diesel. Instead of making life easier for businesses, the new mechanism has complicated operations, increased compliance costs and created uncertainty for thousands of entrepreneurs who are already struggling with rising operating expenses,” he said.
Wong said the greatest irony was that Sabah remained one of Malaysia’s largest oil and gas producing states, having contributed significantly to the nation’s petroleum wealth for decades.
“In effect, Sabah has lost twice. We have lost a practical diesel subsidy arrangement that suited our needs, and in its place, we are expected to navigate quotas, applications and bureaucratic hurdles that many genuine users cannot even qualify for.
“It is a double blow to Sabah’s businesses, economy and ordinary families,” he said.
