SIBU: The federal government has been urged to undertake broader and more meaningful engagements with stakeholders in Sarawak before fully implementing the revised diesel subsidy mechanism, particularly given the state’s unique economic and geographical challenges.
In making the call, Sarawak United People’s Party (SUPP) Youth Central Chairman, Kevin Lau Kor Jie, said while the federal government’s latest announcement to provide a basic quota of 200 litres of subsidised diesel, with an additional 100 litres available upon application for eligible jeep and pickup truck owners, is a step towards targeted assistance and curbing fuel smuggling, significant concerns remain over the policy’s implementation.
He noted that many Sarawakians and businesses are still unclear about the application process, eligibility process, approval procedures, and over implementation framework.
“Without comprehensive clarification and stakeholder consultation, there is a risk that many genuine recipients may face difficulties accessing the assistance intended to them,” he said in a statement today (June 25).
Lau, who is also SUPP Bawang Assan Branch chairman, stressed that Sarawak’s circumstances differ considerably from those in Peninsular Malaysia, making it crucial for federal policymakers to understand local realities before finalising implementation measures.
He pointed out that micro, small and medium enterprises (MSMEs), agriculture operators, transporters, contractors and rural service providers across Sarawak rely heavily on diesel to sustain daily operations.
“Due to Sarawak’s vast geographical landscape, scattered population centres, and extensive transportation routes, fuel consumption patterns are fundamentally different from those in other parts of the country,” he said.
He added that many consumer goods in Sarawak continue to be transported from Peninsular Malaysia, resulting in higher logistics costs that eventually translate into increased prices for consumers.
Lau further highlighted Sarawak’s leadership in adopting B20 biodiesel, which contains 20 per cent palm-based biodiesel and contributes towards reducing dependence on conventional fossil fuels.
“Sarawak has already implemented B20 biodiesel statewide, while many areas in Peninsular Malaysia remains at B12 to B15 levels. This demonstrates Sarawak’s commitment to supporting national sustainability goals and should be taken into account when formulating diesel subsidy policies,” he said.
He warned that the agricultural sector could be disproportionately affected if fuel-related costs rise further.
“Any additional burden arising from diesel-related expenses will inevitably affect food production, supply chains and market prices, ultimately impacting consumers and national food security efforts,” he said.
In light of these concerns, Lau urged the Ministry of Finance to organise dedicated engagement sessions in Sarawak involving representatives from the agricultural, logistics, transportation and small business sectors.
Such consultations, he said, would help ensure that the subsidy framework is practical, equitable and tailored to the state’s operational realities.
At the same time, he called on the relevant authorities to provide detailed and accessible information regarding application procedures, documentation requirements, eligibility conditions and approval timelines to minimise confusion among affected groups.
“The primary objective of any subsidy programme should be to ease the burden on the people. Effective stakeholder engagement and transparent communication are therefore essential to ensure that the initiative delivers meaningful assistance to those who genuinely need it,” he added.
