Source: DayakDaily / KPDN Corporate Communication Unit

The federal government is now consulting the Sarawak and Sabah governments on how to improve the targeted diesel subsidy rollout for East Malaysia.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the Ministry of Finance is leading the engagement because fuel subsidy policy sits under MOF.

What is being looked at

Armizan said several issues came up after the targeted diesel subsidy mechanism, first introduced in Peninsular Malaysia in 2024, was extended to Sarawak, Sabah and Labuan.

He said MOF has started meeting government agencies in both states to identify problems on the ground. Treasury secretary-general Johan Mahmood Merican is also expected to meet elected representatives for direct feedback from their areas.

State agencies may help with registering and verifying eligible recipients, especially in places where federal agencies have limited reach.

Why it matters

For Sarawak, diesel is not just a city issue. It affects transport, contractors, small businesses, rural movement and daily cost of living.

Armizan said any revision still has to balance three things: cost of living, subsidy leakage, and the government's fiscal position.

Location: Sarawak, Sabah and Labuan
Details: Federal review of targeted diesel subsidy mechanism for East Malaysia
Hot Score: 25/30

Source: https://dayakdaily.com/fed-govt-reviewing-diesel-subsidy-mechanism-in-east-malaysia/

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