KOTA KINABALU: The Federal Government should postpone its planned July 1 move to limit diesel subsidy for registered vehicle owners as it would burden Sabahans, says Parti Warisan’s Tham Yun Fook.
The Likas assemblyman said the government must recognise that a large number of diesel vehicle users in Sabah are not necessarily the registered owners of the vehicles.
“The policy, in its current form, risks causing unnecessary hardship for genuine users while having little impact on those engaged in illegal activities,” he said.
Tham proposed that the federal government maintain the existing diesel subsidy arrangements for Sabah and Sarawak without introducing additional restrictions, quota systems, or new policies that may increase the burden on the people.
“There has been significant negative feedback from the public regarding the new policy announced by the Finance Ministry, which limits the purchase of subsidised diesel only to registered diesel vehicle owners throughout Malaysia.
“While we understand that the government introduced this policy to curb diesel smuggling and reduce subsidy leakages, particularly in Sabah, we urge the federal government to take into account the unique circumstances faced by the people of Sabah,” said Tham said in a statement Friday (June 27).
In Sabah, he said many diesel vehicles are registered under the name of a family member, while the vehicle is used daily by another person within the household.
“For example, a vehicle may be registered under the name of a child who is working in another town or state, while the parents are the actual users of the vehicle. These individuals are not involved in any illegal activities, they simply rely on diesel-powered vehicles, particularly four-wheel drives, which are essential for transportation in rural and interior areas where road conditions remain challenging,” he said.
He also noted that many diesel vehicle owners have registered their vehicles under enterprises or small businesses.
Under the current policy, these vehicles may not qualify for subsidised diesel, creating additional burdens for small business operators and vehicle users who depend on them for their daily livelihood,” he added.
At a time when Sabah continues to face numerous economic challenges, including infrastructure deficiencies, road conditions, port congestion, and higher logistics costs, Tham said Sabahans cannot afford policies that may further increase the cost of doing business and the cost of living.
Tham hopes the government would further strengthen enforcement efforts against diesel smuggling through more targeted inspections, monitoring, and enforcement actions.
“Those involved in illegal activities should be dealt with firmly, but law-abiding citizens should not be unnecessarily burdened by policies that affect their daily lives,” he added.
