PAPAR, Feb 2 — The Domestic Trade and Cost of Living Ministry (KPDN) will hold discussions with the Sabah and Sarawak governments before implementing any diesel subsidy retargeting programme in both states.
Its minister Datuk Armizan Mohd Ali said the discussions are crucial in determining which community groups which will receive the subsidy if the Federal government decides to retarget the diesel subsidy and expand it to Sabah and Sarawak.
The retargeting has not been implemented in Sabah and Sarawak thus far due to its high consumption in both states.
“The state governments and enforcement agencies need to be prepared to see which components or segments of the community can be proposed to be considered for the retargeting of diesel subsidy if implemented in Sabah and Sarawak in the future.
“We are preparing in advance, if the government decides to expand (the programme) to Sabah and Sarawak, at least we can submit a proposal to the Federal government for any segment of society with high (diesel) consumption; we recommend (subsidy) with a certain mechanism,” he said.
Armizan was speaking at a press conference today in conjunction with the announcement of the Festive Season Maximum Price Control Scheme (SHMMP) for the Chinese New Year celebration, which will be in effect from February 6 to February 14.
Yesterday, he announced the Subsidised Diesel Control System 2.0 (SKDS 2.0) for land transport, a pilot project by his ministry, will be implemented for two months starting yesterday to provide a mechanism for the diesel subsidy retargeting, expected to be implemented in the second quarter of this year in the Peninsula.
In this regard, Armizan said KPDN also needs the cooperation of all enforcement agencies, including the state governments, to jointly streamline control and enforcement mechanisms so diesel smuggling in Sabah and Sarawak can be curbed.
“It is pointless for us continuing the high subsidy if, in the end, the subsidy flows out, and instead of being enjoyed by the target groups, it is smuggled out at the border,” he said.
— Bernama
