Lau said clearer communication and detailed guidelines are essential to ensure the subsidy programme reaches those who genuinely need assistance. — Bernama photo
SIBU (June 25): The federal government has been urged to engage with more stakeholders in Sarawak before implementing the latest diesel subsidy initiative to ensure the policy reflects the state’s unique economic and geographical circumstances.
Sarawak United People’s Party (SUPP) Youth Central chairman Cr Kevin Lau said while the recent announcement by Second Finance Minister Datuk Seri Amir Hamzah Azizan to provide a basic quota of 200 litres of subsidised diesel—with eligible jeep and pickup truck owners able to apply for an additional 100 litres—was a positive step towards assisting targeted groups and curbing diesel smuggling, it still lacks clarity regarding its implementation.
“There remains insufficient clarity regarding the application process, eligibility requirements, and implementation mechanisms, particularly for stakeholders in Sarawak.
“As such, I urge the Ministry of Finance to engage directly with relevant stakeholders in Sarawak to ensure that the concerns and realities on the ground are properly understood and addressed,” Lau said in a statement on Thursday.
He added that clearer communication and detailed guidelines are essential to ensure the subsidy programme reaches those who genuinely need assistance.
He pointed out that many small and medium enterprises (MSMEs), agricultural operators, food transporters, contractors, and rural service providers rely heavily on diesel to sustain their daily operations.
He noted that Sarawak’s vast geographical landscape, long transportation distances and logistical challenges result in fuel consumption patterns that differ significantly from those in Peninsular Malaysia.
Additionally, he said many goods consumed in Sarawak continue to be transported from Peninsular Malaysia, resulting in additional transportation costs that are ultimately borne by consumers.
Lau also highlighted that Sarawak has been at the forefront of implementing B20 biodiesel, which contains 20 per cent palm-based biodiesel and contributes towards reducing dependency on conventional fossil diesel.
“This level of adoption is ahead of many parts of Peninsular Malaysia, where implementation remains between B12 and B15.
“Therefore, Sarawak’s unique circumstances should be given due consideration when formulating and implementing diesel subsidy policies,” he said.
He stressed that particular attention must also be given to the agricultural sector, especially vegetable and crop farmers who are already facing rising production costs, including increased fertiliser prices.
Any additional burden arising from fuel-related costs, he warned, will inevitably affect food production and supply chains, potentially leading to higher food prices for consumers and undermining efforts to strengthen food security.
“For this reason, there is an urgent need for the Ministry of Finance to conduct comprehensive engagement sessions with stakeholders in Sarawak, including representatives from the agricultural, transportation, logistics, and small business sectors,” he said.
According to Lau, such engagement will ensure that the implementation framework is practical, equitable, and responsive to local conditions.
He also called on the relevant agencies to provide detailed and accessible information on the application procedures, eligibility criteria, required documentation and approval process, to prevent confusion and ensure deserving recipients can access the assistance without unnecessary bureaucratic hurdles.
“The objective of any subsidy programme should be to genuinely ease the burden on the people. Therefore, effective stakeholder engagement and transparent communication are crucial to ensuring that this initiative achieves its intended purpose and delivers meaningful assistance to the people.”
The post SUPP Youth chief urges Putrajaya to engage more Sarawak stakeholders before diesel subsidy rollout appeared first on Borneo Post Online.