Teething problems predicted for SKDS 2.0

UOBKH Research said the SKDS 2.0 requires a two-layered application process that places undue burden on petroleum companies.

PETALING JAYA: The subsidised diesel control system 2.0 (SKDS 2.0), which was introduced to tackle the misappropriation and smuggling of subsidised diesel, has gotten off to a rough start since commencing its pilot phase on Feb 1, say analysts.

UOB Kay Hian Research (UOBKH Research) said although the SKDS 2.0 initiative was introduced with good intentions, potential teething issues could persist until the second half of 2024 (2H24) as diesel subsidy retargeting may have been “messy”.