Kota Kinabalu: The Sabah government will seek Cabinet backing for proposed improvements to the Federal Government’s Budi Diesel subsidy programme after highlighting how the current mechanism falls short of addressing the realities faced by rural communities in the State.
State Agriculture, Fisheries and Food Industry Minister Datuk Jamawi Jaafar said his ministry had convened an engagement session with federal agencies, including the Ministry of Finance (MOF) and the Ministry of Domestic Trade and Cost of Living (KPDN), to present issues encountered on the ground by farmers, food producers and rural transport operators.
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The findings will be tabled to the Sabah Cabinet on 13 Sept to secure the State government’s endorsement before they are formally conveyed to Putrajaya.
“The issues we raised reflect what is actually happening in rural Sabah. We wanted the Federal Government to understand the situation on the ground before considering improvements to the governance and implementation of the Budi Diesel programme,” he said to reporters after the MoU signing ceremony on Thursday.
Jamawi said the dialogue, attended by Treasury Secretary-General Johan Mahmood Merican and senior federal officials, allowed Sabah to present concerns that differ significantly from those in Peninsular Malaysia.
Among the key issues highlighted was the plight of rural school transport operators, many of whom do not qualify for diesel subsidies despite providing an essential service.
“Unlike in Peninsular Malaysia, many districts in Sabah do not have the conventional yellow school buses. Children are transported using various other vehicles that may not be eligible for diesel subsidies, yet they remain vital in ensuring students can get to school,” he said.
He added that the ministry also highlighted the impact of diesel costs on food industry players and agricultural operators, particularly those serving remote communities where transport costs are already significantly higher.
Jamawi said he had obtained Chief Minister Datuk Seri Hajiji Noor’s approval before convening the engagement session, which brought together heads of departments and agencies under both the Sabah Ministry of Agriculture, Fisheries and Food Industry (Maffi) and the Federal Ministry of Agriculture and Food Security operating in Sabah.
“We have conveyed what the people of Sabah are experiencing. The recommendations will now be brought to the State Cabinet so that the State government can support the issues and proposals gathered by the ministry,” he said.
He hoped that the engagement would lead to adjustments in the governance and implementation of the Budi Diesel programme to better reflect Sabah’s unique logistical and transportation challenges, particularly in rural areas where diesel-powered transport remains indispensable.
