KUAMUT Assemblyman Datuk Masiung Banah urged the Federal Government to increase the Budi Diesel subsidy quota for Sabah and Sarawak from 200 litres to 500 litres per month, arguing that the current allocation does not reflect the realities of travel and daily life in the two states.
“The monthly 200-litre Budi Diesel quota for each privately owned vehicle is not reasonable for the road network in Sabah and Sarawak,” said Masiung, who is also Sabah Backbenchers Club Chairman, during his debate on the Supplementary Supply Bill 2026 in the State Legislative Assembly on Monday.
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“That amount is only enough for one or two days of travel in Sabah,” he said, noting that residents in his Kuamut constituency take five to six hours to reach Kota Kinabalu, consuming more than 100 litres of diesel for a one-way journey.
He said many rural communities in Sabah still lack road access and electricity, relying on boats for transportation and diesel generators for power.
“There are still many residents in Sabah who do not have access to roads and electricity. They depend on boats for transport and are forced to use diesel generators to produce electricity,” he said.
Masiung said Kuamut is larger in land area than Kedah, illustrating the geographical challenges faced by Sabah.
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“A 20-minute drive in Peninsular Malaysia could take you across two or three states, while a three-hour drive in Sabah covers only one or two districts,” he said.
He argued that the Federal Government’s diesel subsidy policy has disproportionately affected Sabah and Sarawak due to the stricter eligibility requirements, forcing many residents to purchase diesel at RM3.97 per litre.
He added that many farmers, fishermen and rural school bus operators are unable to qualify for the subsidy because their vehicles are not registered in their own names, having been acquired through loans or permit transfers.
“We hope that through this assembly sitting, the Federal Government will review this new diesel subsidy policy according to the suitability of the geography of Sabah and Sarawak,” he said.
Masiung also proposed increasing the number of recipients under the Sentuhan Kasih Rakyat (Syukur) assistance programme from the current 140,000 to between 200,000 and 300,000 people to help cushion the impact of the subsidy restructuring.
On local governance, he urged the State Government to appoint village chiefs for 12 newly gazetted villages in Kuamut, pointing out that while Village Development and Security Committee (JKKK) chairmen have already been appointed, no village chief positions have been created.
“At every one of these villages, there is no post of village chief that has been created,” he said.
“As a result, all matters involving village customs have to rely on village chiefs from neighbouring villages.”
He said a single village chief is often responsible for two or three villages, causing delays in handling customary matters such as engagements and weddings.
“People in my constituency are now starting to ask questions because one village chief has to help two or three villages that do not have one,” he said, urging the State Government to address the matter during the next State Legislative Assembly sitting, expected in October or November when the 2027 State Budget is tabled.
Masiung also welcomed the supplementary allocation for the Sabah Water Department, describing it as among the largest allocations in the bill, but appealed for Kuamut to benefit from future water infrastructure projects.
“There is still no piped water in Sogo-Sogo, and there is still no piped water in Masaum. I hope my area in Kuamut will be given attention in any budget or supplementary allocation to resolve the water problem,” he said.
He also attributed Sabah’s stronger financial position to its natural resources, prudent fiscal management that has attracted new investors, and political stability.
“No matter how strong our budget is, whether in the tens or hundreds of millions, it means nothing if implementation does not reach the ground,” he said, adding that government officers should be given adequate support to ensure approved allocations are fully utilised within the stipulated timeframe.
