The government will review the SKDS diesel subsidy mechanism to combat fuel smuggling more effectively, with enforcement roles clarified for land, sea, and border agencies.
PUTRAJAYA: The mechanism for implementing the Subsidised Diesel Control System (SKDS) will undergo a thorough review to ensure more effective implementation, particularly in curbing fuel smuggling in Sabah and Sarawak.
Communications Minister Datuk Fahmi Fadzil, who is also the MADANI Government spokesman, said the Cabinet emphasised this need for review during its meeting today following feedback from a committee managing enforcement against fuel smuggling.
“One of the issues that was stressed on was the SKDS mechanism or the provision of diesel subsidy that may need to be reviewed more thoroughly, whether to continue with the existing mechanism or to draft a different mechanism,” he told a post-Cabinet media conference.
Fahmi added that the Cabinet also discussed coordinating the division of tasks among enforcement agencies to strengthen on-the-ground actions against diesel misuse and embezzlement.
He clarified that the Ministry of Domestic Trade and Cost of Living would focus on land-based enforcement, while the Malaysian Maritime Enforcement Agency (MMEA) would oversee waters and river areas.
The Malaysian Border Control and Protection Agency (AKPS) will manage enforcement in the country’s border areas, according to the minister’s statement.