Kota Kinabalu: The Federation of Sabah Industries (FSI) has urged the Federal Government to adopt Sabah-specific safeguards in implementing the BUDI Diesel Subsidy Scheme to avoid increasing costs for businesses and communities.
While supporting targeted subsidies, FSI Vice-President (Government and Industrial Liaison) Sylvester Chua said Sabah's dependence on diesel for transport, logistics, agriculture, fisheries and rural livelihoods required greater flexibility due to the State's geographical and infrastructure challenges.
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Sylvester warned that insufficient quotas, delays in approvals or cumbersome application procedures could disrupt business operations, supply chains and raise the cost of goods and services.
He called for diesel quotas to reflect operational needs, faster approvals and appeals, simpler application procedures, more district-level support centres and regular engagement with Sabah industry groups during the implementation process.
Sylvester said Sabah-sensitive implementation would help achieve the scheme's objectives while safeguarding businesses, livelihoods and the State's economic resilience.
