Kota Kinabalu: The Ministry of Domestic Trade and Cost of Living (KPDN) has submitted a proposal to the Ministry of Finance (MOF) to provide diesel subsidies to ferry operators serving the Kudat-Pulau Banggi route following a reduction in trip frequency due to rising operating and fuel costs.
Its Minister Datuk Armizan Mohd Ali said the proposal followed an engagement session involving the Ministry, Banggi Assemblyman Datuk Mohamad Mohamarin, relevant government agencies and the two ferry operators, who cited escalating costs as the reason for reducing their trips.
He said the ferry service was the primary mode of transport connecting Pulau Banggi residents to Kudat town, making a diesel subsidy crucial to ensuring its continued operation.
“The proposal takes into account the fact that the ferry service on this route primarily serves the connectivity needs of the local population rather than tourism activities,” he said in a statement following a visit to Pulau Banggi in Kudat, Monday.
Armizan said the service enabled island residents to access essential services and purchase daily necessities in Kudat.
He expressed hope that the proposed subsidy would help both operators restore their trip frequency to meet the needs of the local community.
He added that details of the subsidy mechanism would be announced subject to the MOF’s consideration and approval.
Meanwhile, Armizan said the Ministry had intensified efforts to ease the cost of living for Pulau Banggi residents through the Program Jualan Rahmah Madani (PJRM) and the Essential Goods Distribution Programme.
He said 35 PJRM sales sessions had been held on the island from Jan 1 to Oct 18 this year, compared with 31 throughout 2025.
The Essential Goods Distribution Programme, meanwhile, covered 77 points of sale across three zones on the island, namely Karakit, Damaran and the surrounding islands.
