Kuala lumpur: The Fisheries Development Authority of Malaysia (LKIM) has taken decisive measures by suspending diesel subsidy and blacklisting 119 fishing vessels as of August, in a bid to address leakage issues.
According to BERNAMA News Agency, Finance Minister II Datuk Seri Amir Hamzah Azizan stated that since 2019, the government has imposed a limit on the subsidised diesel quota for the fishing sector, reducing it to 70 million litres per month from the previous 80 million litres per month. This initiative aims to benefit coastal fishermen and those operating in Zones A, B, and C by providing subsidised diesel at RM1.65 per litre, thereby helping to alleviate some of their operational costs.
However, Amir Hamzah highlighted that deep-sea fishermen operating in Zone C2 are excluded from receiving subsidised diesel due to their generally substantial financial capabilities as commercial fishermen. This exclusion is part of broader government efforts to tackle the issue of diesel leakage, particularly in deep-sea regions. His remarks were made while concluding committee-level debates on the Supply Bill 2026 in the Dewan Rakyat.
In response to a query from Datuk Awang Hashim (PN-Pendang) about diesel subsidy leakage, Amir Hamzah explained that the government, via LKIM, has developed the MyIsytihar application since 2024. This application serves as a control measure, ensuring fishermen who receive diesel subsidies accurately report their catch to LKIM.
He further stated that enforcement operations are being bolstered through strategic collaborations with enforcement agencies. These integrated operations focus on improving border control and curbing smuggling activities via land and sea routes.
Additionally, addressing the effects of the targeted diesel subsidy on paddy farmers and smallholders, Amir Hamzah noted that 180,000 farmers, breeders, and smallholders have benefited from the BUDI Agri-Komoditi program. This initiative has provided RM350 million in payments as of September 30, 2025, including a monthly contribution of RM200, or RM2,400 annually, for registered farmers, breeders, and smallholders with the relevant ministry.