Kuala lumpur: Claims that the Federal Government is being unfair by continuing blanket diesel subsidies in Sabah, Sarawak, and Labuan are misguided, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. He emphasized that while targeted diesel subsidies have not been fully implemented in these regions, the government's approach is to roll them out in stages.

According to BERNAMA News Agency, the government's policy aims to reform subsidy distribution through targeted measures to ensure assistance effectively reaches the intended groups. As this represents a significant reform, it requires careful planning and phased implementation. Datuk Armizan shared these insights with reporters during the state-level Hari Raya Aidilfitri celebration at the Sabah International Convention Centre.

The Federal Government, in collaboration with the Ministry of Finance, is currently reviewing a proposed framework for targeted diesel subsidies specifically for Sabah, Sarawak, and Labuan. Once refined, this framework will be discussed with the respective state governments before moving forward with implementation.

Armizan highlighted that existing models, such as BUDI95, BUDI MADANI, the Subsidised Diesel Control Scheme (SKDS), and the Subsidised Petrol Control Scheme (SKPS), are being evaluated to design an effective subsidy mechanism. He also clarified misconceptions regarding diesel subsidies in Peninsular Malaysia, noting that subsidies continue to be provided in a targeted manner to the land and goods transport sectors and specific eligible groups.

The Minister further explained the necessity for careful assessment in Sabah, Sarawak, and Labuan due to their heavy reliance on diesel and the geographical challenges that lead to higher logistics costs. The cost of transporting goods by sea from Peninsular Malaysia to these regions exceeds that of major trade routes involving countries like China and India, contributing to significant price disparities influenced by logistics expenses and import dependence.