Armizan defends diesel subsidy rationalisation exercise amid lawsuit


KOTA KINABALU: Datuk Armizan Ali stood by the Federal Government’s decision to implement the diesel subsidy rationalisation exercise in the country except in Sabah and Sarawak amid a lawsuit against the government over the policy.

The Domestic Trade and Cost of Living Minister said the government respected the right of the people to take legal action but pointed out the rationalisation drive was not meant to discriminate against anyone.

He said he had received the writ of summons three weeks ago, adding the Prime Minister, Finance Minister, Economy Minister, Transport Minister and the Federal Government were also named as respondents.

“We will discuss with the Attorney-General’s Chambers on the next course of action,” he told reporters after an event here on Saturday (Oct 12).

“The basis of the lawsuit was that we were considered to be unfair and discriminatory for not implementing the diesel subsidy rationalisation exercise simultaneously nationwide.

“That is their right to bring the matter to court (but) as I have said before, we will defend this,” Armizan added.

A judicial review application was filed last month by two individuals namely Azhani Marlan @Abd Halim and Mohd Hatta Sanuri at the Kuala Lumpur High Court opposing the government’s targeted diesel subsidy policy which started June 10.

The plaintiffs are seeking a declaration from the court that the government’s decision to lift the diesel subsidy in the peninsula was irrational, unreasonable and invalid as it allegedly contravened the Federal Constitution.

They also wanted the court to declare the decision by the government not to lift the subsidy in the Borneon states was equally irrational and unfair.

Armizan explained that the decision to exempt Sabah and Sarawak from the rationalisation drive was so the government could review the implementation in the peninsula.

Secondly, he pointed out, that the use of diesel vehicles in Sabah and Sarawak was widespread and driven by necessity rather than desire.

“Why? Because of the state of road infrastructure and geographical conditions that require people in Sabah and Sarawak to use diesel-powered vehicles.

“Moreover, it is crucial to understand the significant price disparity between goods and services in Peninsular Malaysia and, Sabah and Sarawak.

“So, we hope they understand, but we will respond (to the lawsuit) because this is not based on discriminatory actions, far from it,” Armizan said.

He said the issue had been aggravated due to certain MPs claiming in Dewan Rakyat sessions that the decision over the policy was taken due to political factors.

“I wish to deny this as the decision was taken due to current circumstances,” he said, adding the government acknowledged however this was a sensitive issue.

The Minister said the government did not discriminate against consumers in the peninsula as those qualified to receive the subsidy, including individual households and the private sector, were getting government assistance.

“The subsidy is being continued including in the peninsula but only that it is targeted.

“It is not being sold wholesale in fuel stations but we are giving help in the form of fleet cards and cash assistance to those in need.

“The initial phase is difficult and has been turned into issues in some by-elections but we are seeing that the implementation is running smoothly now,” Armizan said.

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