Sabah, Sarawak Diesel Subsidy Justified By Local Conditions, Say Leaders

Sabah: The federal government's decision to maintain the diesel subsidy at RM2.15 per litre in Sabah, Sarawak, and Labuan is not an act of favouritism, but a necessity based on local socioeconomic conditions. State leaders said the regions' vast and challenging geography makes diesel essential for daily movement, with both land and water transport relying on it to connect rural areas to towns and deliver basic goods.

According to BERNAMA News Agency, Sabah Agriculture, Fisheries and Food Industry Minister Datuk Jamawi Jaafar explained that difficult terrain and limited road infrastructure make diesel-powered vehicles, particularly four-wheel drives, a necessity compared to Peninsular Malaysia. He stated that the decision is appropriate and should be understood by the wider public. Jamawi expressed gratitude to Prime Minister Datuk Seri Anwar Ibrahim for maintaining the subsidy, as the geographical conditions and daily travel needs in Sabah are very different. He also urged the public to use the subsidy responsibly and help prevent misuse.

Jamawi revealed that his ministry is in discussions with the Ministry of Domestic Trade and Cost of Living (KPDN) to ensure small-scale farmers benefit from the subsidy. He encouraged farmers to switch to compost fertiliser as a more cost-effective alternative amid rising prices of chemical fertilisers.

Meanwhile, former Sabah Youth and Sports Minister Tan Sri Liew Yun Fah stated that the subsidy is not unfair to other states. The Parti Harapan Rakyat Sabah (PHRS) president justified the move given differences in basic facilities, road conditions, and higher logistics costs. He noted that Sabahans have long endured poorer road conditions without questioning the development gap. Liew highlighted the travel time disparity, noting that a journey from Kota Kinabalu to Tawau takes nearly 10 hours, compared to about six hours for a similar distance from Kuala Lumpur to Perlis, due to poor road conditions and lack of Rest and Recreation areas.

Sabah Education, Science, Technology and Innovation Minister Datuk James Ratib expressed hope that the subsidy will be maintained to avoid a sharp rise in the cost of living. He pointed out that higher fuel prices would directly increase transportation costs and, in turn, raise prices for consumers. Ratib emphasized that not everyone in Sabah is wealthy, and essential goods are already more expensive than in Peninsular Malaysia.

Deputy Chief Minister III Datuk Ewon Benedick argued that Sabah deserves the subsidy as one of the country's main oil and gas-producing states. Ewon, who also serves as Sabah Industrial Development, Entrepreneurship and Transport Minister, said the state's resources have long contributed to national development. He called on the federal government to review the needs of Sabah as an oil and gas-producing state and ensure the benefits are returned to the people. Ewon added that although some rights of Sabah and Sarawak have yet to be fully implemented, this has not affected the spirit of cooperation and unity among regions in Malaysia.