The government will review diesel subsidies for fishermen as its fuel subsidy burden surges from RM700 million to RM3.5 billion due to the West Asia crisis
PUTRAJAYA: The government will further refine the diesel subsidy for fishermen at upcoming high-level council meetings. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said this move addresses a surging fuel subsidy burden.
The government’s subsidy cost has escalated from RM700 million to RM3.5 billion. “This is a very heavy burden,” Ahmad Zahid told reporters after a ministry assembly.
He attributed the pressure to external factors, not domestic policy. “We must be rational, and all parties must accept that this situation is driven not by domestic factors but by the crisis in West Asia,” he said.
The matter will be discussed at the National Cost of Living Action Council and the National Economic Action Council. Ahmad Zahid said discussions would include the status of deep-sea fishermen in Zone C2.
In a speech, he highlighted the global energy crisis’s direct impact on living costs. He said 8.1 million rural residents depend on fuel subsidies and basic logistics chains.
Rubber smallholders are particularly vulnerable to rising input costs and price volatility. They contribute about 84.7% of the country’s natural rubber output.
More than 224,000 Orang Asli also face mounting challenges from higher fuel costs. These costs affect water supply, student transport, healthcare, and aid delivery to remote areas.
Ahmad Zahid warned that prolonged disruptions could shift pressure to cash flow constraints. This may require expanded government assistance programmes by May or June.
“This crisis is not to alarm, but to be addressed with effective and decisive action,” he said. He stressed the government has taken proactive mitigation measures.
These measures include maintaining subsidies, stabilising prices, and implementing targeted interventions. The ministry’s priority is ensuring rural communities remain resilient.
