SIBU: Deputy Minister of Public Health, Housing and Local Government, Datuk Michael Tiang Ming Tee, has urged the Federal Government to expand the Subsidised Diesel Control System (SKDS) to cover more categories of commercial and industrial vehicles as well as non-governmental organisations (NGOs) in Sarawak.
Tiang said while the Federal Government’s move to rationalise diesel subsidies was understandable, its implementation had created significant challenges for businesses in the state.
He said this at a Fleet Card Application for Commercial Vehicles and Engagement Session today.
The event, which included dialogue with representatives from the Ministry of Domestic Trade and Cost of Living (KPDN) and the Road Transport Department (JPJ), was organised to gather feedback on the SKDS, which was implemented nationwide on July 1, 2026.
“We understand that the government’s objective is to rationalise diesel subsidies across Malaysia, and we respect that intention. However, based on the feedback I have received from the ground, the implementation of this policy has had a significant impact, particularly on the commercial and industrial sectors, especially small and medium enterprises (SMEs),” he said.
According to Tiang, many business owners had informed him that they were excluded from receiving subsidised diesel despite relying heavily on diesel-powered vehicles for their daily operations.
He pointed out that the issue was particularly acute in Sarawak because of its vast geographical area and the state’s dependence on road transport.
“We have waited for decades for proper highway infrastructure. While progress is finally being made, many businesses are now facing another setback because they are no longer eligible for subsidised diesel,” he said.
Tiang appealed to KPDN to review two key groups currently affected by the subsidy policy.
The first group comprises commercial and industrial vehicle operators, several categories of whom are excluded from the list of vehicles eligible for subsidised diesel.
Among them are lorries transporting construction materials, which he described as vital to the construction industry.
He said some contractors had told him they were unable to continue ongoing projects or accept new jobs because rising fuel costs had significantly increased their operating expenses.
Other excluded vehicles include dump trucks, self-loading vehicles and heavy machinery transporters used to carry excavators, bulldozers and other heavy equipment.
Sky lifts, which are commonly used for maintenance work, painting and the installation of advertising materials, are also not eligible for subsidised diesel.
“These vehicles are used solely for commercial and industrial purposes, not for private use. They are essential to supporting economic activities and should therefore be included in the subsidy scheme,” he stressed.
The second group Tiang urged the government to consider comprises non-governmental organisations (NGOs), particularly non-profit and religious organisations.
He said many of these organisations operate vans and pick-up trucks to deliver welfare and humanitarian assistance, especially to people living in rural and remote areas.
“They are not profit-making organisations. Their mission is to serve the community by providing welfare and humanitarian assistance.
“Because they do not generate profits, they have very limited financial resources to absorb the higher cost of unsubsidised diesel. Yet they continue to contribute significantly to the well-being of our communities,” he said.
For that reason, Tiang said such organisations deserved to be included in the subsidised diesel scheme as the fuel was used solely to serve the public rather than for commercial gain.
He urged the Federal Government to expand the list of eligible vehicles and organisations after reviewing the feedback received from stakeholders.
Tiang also called for the review process to remain ongoing instead of being treated as a one-off exercise.
“The government should keep the door open to genuine cases and continue listening to those who rely on diesel to earn a living and support the economy.
“We are living in a very challenging global economic environment. This is not a time of economic prosperity. Therefore, I sincerely urge the government to take these concerns into consideration,” he said.
