Kota Kinabalu: Sabah Pakatan Harapan (PH) welcomed the Madani Government’s announcement on the implementation of the Budi Madani Diesel programme, which will enable eligible Malaysians to purchase subsidised diesel at RM2.10 per litre nationwide through the use of MyKad beginning 1 July 2026.
Sabah PH information chief Datuk Chan Foong Hin said PH Sabah supports efforts to reform the subsidy system through a more targeted and transparent approach that reduces leakages and ensures government assistance reaches those who genuinely need it.
“Any savings generated from subsidy rationalisation should be channelled back to the rakyat through targeted assistance, cost-of-living support measures, and improvements to public services,” he emphasised in a statement on Wednesday.
He noted that the success of the policy should not be measured solely by the standardisation of implementation mechanisms, but by its tangible impact on the daily lives of Sabahans.
“Given Sabah’s unique geographical and economic realities, particular attention must be paid to the needs of communities that depend heavily on long-distance land transportation, inter-district logistics, private diesel-powered vehicles, river transport services, and generators in rural and remote areas,” he said.
Chan also expressed appreciation for the active role played by Datuk Armizan Mohd Ali, Minister of Domestic Trade and Cost of Living (KPDN) and Papar MP, in helping to explain and facilitate the implementation of the policy.
“As a representative from Sabah who understands the state’s distinct economic and geographical circumstances, Datuk Armizan’s involvement is important in ensuring that fiscal reforms are balanced with consumer protection and price stability considerations in Sabah,” he noted.
To ensure the smooth implementation of the targeted diesel subsidy programme, PH Sabah urged the Government to give serious attention to several key areas.
Firstly, he said expansion of the Subsidised Diesel Control System (SKDS) should be closely monitored to prevent supply disruptions and delays in registration processes that could adversely affect consumers and businesses.
Chan stressed that additional diesel quota mechanisms for users in rural and remote areas should be implemented in a flexible and practical manner, recognising the different consumption patterns and greater travel distances faced by communities in Sabah.
“KPDN and relevant enforcement agencies should intensify monitoring and enforcement efforts to ensure that changes to the subsidy mechanism are not exploited as a justification for unreasonable increases in the prices of goods or transportation charges.”“The intended benefits of subsidy reform must be felt by the people and not be undermined by unnecessary price increases throughout the supply chain,” he added.
He also said assistance and complaint channels should be strengthened, particularly in rural and remote areas, to ensure that affected individuals can easily access information, support, and redress under the new system.
Sabah PH welcomed the Government’s decision to maintain subsidies for strategic sectors, including fishermen, small-scale farmers, public transport operators, river boat operators, and generator users in remote areas.
Chan stressed that subsidy reform should not be viewed solely as a fiscal exercise. Rather, it should serve as a tool to create a fairer and more efficient system, reduce leakages, and safeguard the welfare of the people, especially Sabahans who face distinct economic and logistical challenges.
He reaffirmed PH Sabah’s commitment to working constructively with the Madani Government to ensure that the implementation of the policy delivers meaningful benefits to the people while ensuring that no community is left behind.
