KUCHING: Consumers Voice of Sarawak (COVAS) welcomed Budget 2026’s targeted subsidy reforms but stressed that fair implementation and rural accessibility are crucial to protect households.
The Budget introduced targeted subsidies for chicken, eggs, electricity, diesel and RON95, with estimated annual savings of RM15.5 billion.
Covas President, Michael Tiong, said while fiscal savings were necessary, the real concern was their impact on daily living costs.
“The real issue lies in how these measures will affect daily living costs and whether implementation can truly protect those who need help the most.
“Targeted subsidies will inevitably cause some price adjustments, and consumers must understand that subsidies can no longer be unlimited or affordable solutions.
“Prices will continue to rise gradually due to inflation, even for subsidised goods,” he told Sarawak Tribune.
As such, Tiong said that while subsidy rationalisation was necessary, fairness, practicality and regional realities must remain central to policy.
He urged the government to channel savings into Rahmah sales, targeted cost-of-living programmes, and household-based aid that considers family size as well as income.
“Only with careful enforcement, localised adjustments and transparent execution can Budget 2026 truly ease the cost of living for all Sarawakians,” he stressed.
Tiong suggested that direct monthly assistance, such as the MyKasih system for verified B40 households, would be more effective than broad subsidies that benefit higher-income groups.
He commended the Domestic Trade and Cost of Living Ministry (KPDN) for its enforcement work but urged continued vigilance to stop traders from using subsidy changes as an excuse for unjustified price hikes.
He added that while programmes like BUDI95 were commendable in supporting fishermen, smallholders and e-hailing drivers, refinements were still needed to ensure no eligible consumers, especially in rural Sarawak, were left behind.
On the same note, Tiong raised concerns over rural realities, noting many villages are far from petrol stations and rely on small traders who resell fuel in limited quantities.
“Special consideration must also be given to rural residents who travel long distances to access supplies or to small farmers who need to transport goods frequently.
“They should not be unfairly penalised by fuel quota limits when their travel needs are essential and unavoidable.
“When quotas restrict how much subsidised fuel these traders can purchase, they may be forced to raise prices, indirectly burdening rural consumers,” he added.
He stressed that Sarawakians’ long-distance travel for work, family or farming must also be considered.
Fuel quotas, he said, should be flexible enough to reflect these needs.
“The subsidy system must therefore be flexible enough to consider such realities and allow quota reassessments where necessary,” he asserted.
