MENUMBOK: Engagement sessions between the Federal Government and the Sabah and Sarawak governments are underway to gather grassroots feedback on the implementation of diesel subsidy targeting in the two states.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the engagement process is being spearheaded by the Ministry of Finance (MOF), which is responsible for formulating fuel subsidy targeting policies.
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“When the implementation, which began in Peninsular Malaysia in 2024, is expanded to Sabah, Sarawak and Labuan, several issues have inevitably arisen.
“However, the Federal Government has expressed its readiness to improve the implementation in collaboration with the state governments, which have a better understanding of the realities and needs of communities at the grassroots level,” he said.
He said this at a press conference after launching the Kampung Angkat Madani Project for Kampung Sekalong under the Kuala Penyu constituency, recently.
Also present was Assistant Works and Utilities Minister Datuk Limus Jury, who is also the Kuala Penyu Assemblyman.
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Armizan was responding to proposals to improve the diesel subsidy mechanism in Sabah, Sarawak and Labuan.
He said the MOF has begun engagement sessions with government agencies in Sabah and Sarawak to identify implementation challenges and formulate appropriate solutions to ensure the diesel subsidy mechanism better reflects local realities.
The sessions will continue with meetings between the Secretary-General of the Treasury and elected representatives to obtain direct feedback on issues affecting their respective constituencies.
“There are cases where Federal agencies do not have sufficient access at the grassroots level, and state government agencies can assist in the registration and verification process for the targeted groups.
“When data collection and verification can be carried out effectively, I am confident the Federal Government is prepared to make improvements so that subsidies truly reach those who need them,” he said.
Armizan said any improvements to the subsidy mechanism must balance three key considerations: the people’s cost of living, efforts to curb subsidy leakages and the Government’s fiscal position.
According to him, a blanket subsidy approach is no longer appropriate, with assistance instead needing to be targeted at those who genuinely require it.
“Assistance for the underprivileged cannot be compromised. The Government must continue helping them to ease the burden of the rising cost of living,” he said.
