Domestic trade and cost of living minister Armizan Mohd Ali says feedback is being gathered to ensure the targeted subsidy programme reflects local conditions.
The domestic trade and cost of living minister said the finance ministry was leading the engagement process as it was responsible for formulating fuel subsidy policies.
He said several issues emerged after the targeted subsidy mechanism, first introduced in the peninsula in 2024, was expanded to Sabah, Sarawak and Labuan.
“The federal government is ready to improve its implementation in collaboration with the state governments, which have a better understanding of the realities and needs of communities at the grassroots level,” he said, according to the Daily Express.
Armizan was responding to proposals to review and improve the diesel subsidy mechanism in Sabah, Sarawak and Labuan.
He said the finance ministry has begun meeting government agencies in Sabah and Sarawak to identify implementation challenges and formulate solutions that better reflected local conditions.
Treasury secretary-general Johan Mahmood Merican would also meet elected representatives to obtain direct feedback on problems affecting their constituencies, he said.
Armizan also said state agencies could assist federal authorities in registering and verifying eligible recipients, particularly in areas where federal agencies had limited access.
“When data collection and verification can be carried out effectively, I am confident the federal government is prepared to make improvements so that subsidies truly reach those who need them.”
Armizan said any revision to the mechanism must take into account the cost of living, efforts to curb subsidy leakages and the government’s fiscal position.
He said blanket subsidies are no longer appropriate and assistance should instead be directed towards those who genuinely needed support.
“Assistance for the underprivileged cannot be compromised. The government must continue helping them to ease the burden of the rising cost of living,” he said.
Last week, Sabah chief minister Hajiji Noor said his administration was discussing with the finance ministry and relevant federal agencies over the implementation of the targeted diesel subsidy programme.
The BUDI Diesel initiative was implemented nationwide on July 1, with eligible private diesel vehicle owners receiving a basic monthly quota of 200 litres at the subsidised price of RM2.10 a litre. - FMT
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