Kota Kinabalu: Domestic Trade and Cost of Living Ministry (KPDN) Sabah Director Shahril Nizam Shahidin said it will forward a memorandum by Parti Warisan assemblymen to Putrajaya for Sabah to be exempted from the nationwide diesel subsidy policy or allowed a mechanism suited to the State’s needs.
“We are the implementing Ministry. We will convey and hopefully we can discuss together in a better way in future,” he said.
For the record, the Budi Madani Diesel subsidy system replaces the previous blanket diesel subsidy with a targeted mechanism verified through MyKad, a move the Federal Finance Ministry said was meant to ensure subsidies reach eligible Malaysians while closing loopholes that have cost the country billions of ringgits annually.
Full implementation took effect nationwide July 1, with subsidised diesel priced at RM2.10 per litre for verified eligible users at participating petrol stations.
Kapayan Assemblyman Chin Tek Ming, who led the delegation, said the current subsidy structure was unfair to Sabah.
“It is unfair to compare us with other places because our resources have been taken, and it is a miserable five per cent royalty returned to us,” he said.
He said Sabah’s poor road conditions leave most vehicle owners with no choice but to use diesel-powered four-wheel drives.
The memorandum contains, among others, four proposals to the Federal Government and the KPDN, namely an exemption for Sabah or a separate subsidy mechanism, formal recognition of the State’s higher fuel needs, a review of eligibility criteria to include business and community vehicles and targeted protection for rural transport, fisheries, tourism and small businesses.
The memorandum was also submitted simultaneously by Warisan’s Sandakan and Tawau delegates, led by Calvin Chong (Elopura) and Justin Wong (Sri Tanjong).
