KOTA KINABALU: The Kota Kinabalu Hardware Machinery & Building Material Traders Association Sabah (KKHMBA) called on the government to improve its implementation of the targeted diesel subsidy in Sabah, saying delays in approvals are placing additional financial strain on businesses.
Its president, Tan Peng Juan, said many eligible businesses have yet to receive approval from the Ministry of Domestic Trade and Cost of Living (KPDN) or their fleet cards after a month of implementation in the State.
Although the association welcomed the government’s targeted diesel subsidy initiative, he said the delays have forced affected businesses to purchase diesel at market prices, increasing delivery costs at a time when businesses are already grappling with sluggish economic conditions and rising operating expenses.
“This comes at a time when the economy remains challenging, business is slow and operating costs continue to rise.
“The delay in subsidy approval has affected many hardware traders and will eventually increase costs for consumers,” he said in a statement here on Sunday.
Tan also urged the government to review the eligibility criteria for dump trucks used by hardware businesses, saying the vehicles are essential for transporting construction materials such as sand, aggregates and bricks to customers and project sites.
“Excluding these vehicles (dump trucks) from the subsidy scheme would inevitably raise transportation costs and, in turn, increase the cost of home repairs and construction projects,” he said.
Tan said the association also appealed to the government to reconsider the exclusion of jeeps and pickup trucks owned by small and medium enterprises (SMEs) registered as Sdn Bhd.
This is because, he said many hardware businesses are incorporated as Sdn Bhd entities despite operating as micro or small enterprises, adding that subsidy eligibility should instead be determined based on SME status or annual business turnover rather than company structure.
He also called on KPDN to engage industry associations, including KKHMBA and other diesel-dependent trade groups, before introducing future policy changes.
