KUCHING: Small and medium enterprises (SMEs) in Sarawak are calling on the federal government to review the diesel subsidy mechanism after claiming many legitimate commercial vehicles have been excluded from the Subsidised Diesel Control System (SKDS).
In a statement, the group said businesses that rely on diesel-powered vehicles for their daily operations are facing difficulties in accessing the subsidy, despite using the vehicles for commercial purposes.
Among the affected vehicles are Hilux four-wheel drives, vans and tipper lorries commonly used by SMEs in transportation, logistics, construction and other industries.
According to the statement, many businesses attempting to apply under the SKDS have encountered the system message ‘Tiada Kenderaan Yang Layak Dijumpai’ (No eligible vehicle found) when entering their vehicle registration numbers.
It said the issue has raised concerns over the eligibility criteria and implementation of the subsidy programme as commercially operated vehicles appeared to be automatically excluded despite meeting operational needs.
The group warned that rising diesel prices have significantly increased transportation, logistics and project costs, affecting the competitiveness and profitability of local SMEs.
It urged the relevant authorities to review the vehicle eligibility criteria under the SKDS, resolve technical issues affecting the application system and ensure eligible commercial vehicles are not unfairly excluded from receiving the subsidy.
The statement stressed that SMEs form the backbone of Sarawak’s economy and that policies introduced to ease business costs should be implemented effectively rather than creating additional barriers for businesses.
It also called on the federal government to take into account Sarawak’s diesel composition when reviewing subsidy policies, noting that diesel supplied in the state contains 20 per cent biodiesel, which it said contributes to lower production costs compared to Peninsular Malaysia.
The group said this difference should be taken into account when determining future diesel subsidy mechanisms for Sarawak.
