PETALING JAYA: The Federal Government is seeking to further refine the Subsidised Diesel Control System (SKDS) to ensure subsidies are more targeted, says Economy Minister Akmal Nasrullah Mohd Nasir.
He said the move also aimed to strengthen controls against leakage without disrupting business operations or supply chains.
"The National Economic Action Council meeting today examined proposals to improve SKDS, presented by the Domestic Trade and Cost of Living Ministry, to align diesel subsidy quotas.
"The proposal will be implemented in a balanced manner to tighten controls against leakage while safeguarding business operations and supply chains," he told a press conference on Tuesday (May 19).
Akmal Nasrullah said that, based on MySubsidi data as of April 9, more than 368,000 vehicles have been registered under SKDS.
This includes over 375,500 goods transport vehicles and around 23,000 public transport vehicles.
Meanwhile, Akmal Nasrullah said the government has put in place targeted financing support to help small and medium enterprises (SMEs) maintain cash flow, manage cost pressures, and ensure business continuity.
“This is because SMEs are more vulnerable due to their limited financial capacity to absorb prolonged cost pressures,” he said.
The support includes the SME Stabilisation Relief Facility (SME SRF), which is a RM5bil facility provided by Bank Negara Malaysia (BNM) previously to offer working capital financing to affected SMEs.
He also said the government provides financing guarantee support to SMEs through Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP) across economic sectors, including manufacturing, subject to scheme eligibility.
This followed a study presented by the Federation of Malaysian Manufacturers (FMM) on the impact of the global energy crisis and supply chain disruptions on the country’s manufacturing industry.
“The manufacturing sector is one of the key drivers of the national economy, particularly in terms of contributions to exports, job opportunities, investment and domestic supply chains.
“The main issues highlighted by FMM include raw material supply, rising logistics costs, cash flow pressures, export competitiveness, investment planning and the need to sustain employment,” he said.
The Economy Minister said findings show that the pressures faced by the manufacturing industry have had a cascading effect on production costs, operational efficiency, export deliveries and companies’ ability to sustain growth momentum.
“The government appreciates the efforts of companies that are taking internal measures to retain employment amid current pressures in order to safeguard jobs,” he added
