PAPAR: The Domestic Trade and Cost of Living Ministry will hold discussions with the Sabah and Sarawak governments before the implementation of any diesel subsidy retargeting programme in those states.
Minister Datuk Armizan Mohd Ali said the discussions are crucial to determine the community groups that will receive the subsidy if the Federal Government decides to retarget the diesel subsidy and expand it to Sabah and Sarawak.
The Papar MP said that the retargeting of the diesel subsidy has not been implemented in Sabah and Sarawak thus far, due to high consumption in both states.
“The state governments and enforcement agencies need to be prepared to see which segments of the community can be proposed to be considered for the retargeting of the diesel subsidy in the future.
“We are preparing in advance – if the government decides to expand (the programme) to Sabah and Sarawak, at least we can submit a proposal to the Federal Government for any segment of society with high (diesel) consumption; we (can) recommend a certain mechanism,” he told Bernama at a press conference here yesterday in conjunction with the announcement of the Festive Season Maximum Price Control Scheme for the Chinese New Year celebration.
On Thursday, Armizan announced that the Subsidised Diesel Control System 2.0 (SKDS 2.0) for land transport, a pilot project by his ministry, was being implemented for two months from Feb 1, to provide a mechanism for the retargeting of the diesel subsidy, expected to be implemented in the second quarter of this year in the peninsula.
For this, he said his ministry needs the cooperation of all enforcement agencies, including state governments, to jointly streamline control and enforcement mechanisms so that diesel smuggling in Sabah and Sarawak can be curbed.
“It is pointless for us continuing the high subsidy if, in the end, the subsidy flows out, and instead of being enjoyed by the target groups, it is smuggled out at the border,” he added.
