KUCHING: Concerns have been raised over the Putrajaya’s decision to implement a nationwide targeted diesel subsidy mechanism beginning Jul 1, which will place Sabah and Sarawak under the same subsidy framework as Malaya.
MBKS councillor Eric Tay Tze Kok, while acknowledging the government’s efforts to ensure subsidies reach those who genuinely need them and to curb leakages and smuggling activities, stressed that any subsidy reform must take into account Sarawak’s unique geographical and transportation realities, according to a statement today.
He said although the announced reduction in diesel prices from RM2.15 to RM2.10 per litre may appear beneficial, many Sarawakians are more concerned about the proposed monthly subsidy quota system, under which diesel and RON95 subsidies are reportedly combined into a single allocation of 200 litres.
“Many people focus on the five-sen reduction in diesel prices, but the real concern is whether a shared 200-litre quota will be sufficient to meet the daily needs of Sarawakians,” he said.
Tay said Sarawak’s vast geographical landscape and longer travel distances make its situation significantly different from that of Malaya.
“In Sarawak, travelling between districts often involves hours on the road. Whether for work, business, official duties, or simply accessing essential services, long-distance travel is a normal part of daily life,” he said.
He said higher fuel consumption in Sarawak is not a matter of choice, but a necessity driven by geographical realities.
“People here are not using more fuel because they want to. They use more fuel because they have no alternative. Distance is a reality that cannot be ignored,” he said.
According to Tay, rural communities, farmers, small business owners, transport operators, and those who regularly travel between towns and districts depend heavily on diesel-powered vehicles for both transportation and their livelihoods.
He warned that if diesel and RON95 are required to share a combined monthly quota, households that own both diesel and petrol vehicles could face additional financial burdens.
“The concern for many families is whether the quota will be exhausted well before the end of the month. Once that happens, they will have no choice but to purchase fuel at market prices,” he said.
Tay pointed out that many diesel vehicle owners in Sarawak already consume significantly more than 200 litres per month due to work and travel requirements, adding that the savings gained from the five-sen reduction could easily be offset by higher fuel expenses once the subsidised quota is depleted.
While supporting efforts to combat smuggling, prevent subsidy leakages, and ensure responsible use of public funds, Tay stressed that policy implementation should be adapted to local conditions rather than applying a one-size-fits-all approach nationwide.
“Equality does not necessarily mean treating every region exactly the same. True fairness means recognising different realities and providing solutions that address those realities,” he said.
Given Sarawak’s vast land area, dispersed population, longer travel distances, and higher transportation costs, Tay urged the federal government to review the subsidy framework for Sabah and Sarawak.
He proposed either a higher subsidy quota or a more flexible mechanism for East Malaysia to ensure that subsidy reforms do not unintentionally burden those who genuinely depend on diesel for their daily lives and livelihoods.
“Sarawakians support reform, but reform must not overlook local realities. We support targeted subsidies, but targeted subsidies should also recognise the unique needs of different regions,” he said.
He added that meaningful engagement with local stakeholders and a more region-sensitive approach would help ensure that subsidy reforms achieve their intended objectives while continuing to benefit the people.
