Federal govt urged to review diesel subsidy criteria to support SMEs, welfare organisations

By DayakDaily Team

SIBU, Aug 7: The federal government has been urged to review and widen the eligibility criteria under the Subsidised Diesel Control System (SKDS) for commercial vehicles and welfare organisations to prevent rising operating costs from affecting businesses and community services.

Sarawak Deputy Minister of Public Health, Housing, and Local Government Datuk Michael Tiang Ming Tee said the move would ease financial pressure on small and medium enterprises (SMEs) and non-profit organisations that rely on diesel-powered vehicles for their daily operations.

In a report by the Sarawak Public Communications Unit (Ukas), Tiang said several categories of commercial and industrial vehicles remain excluded from the subsidy despite playing an important role in supporting economic activities.

These include construction-material lorries, tipper trucks, rigid dumpers, self-loaders, heavy-machinery transporters, and skylifts.

“Without access to subsidised diesel, some operators may not be able to continue their projects or undertake new ones that have already been secured,” he said when met after the Fleet Card Application and Diesel Subsidy Engagement Session organised by the Sibu Chinese Chamber of Commerce and Industry on Aug 6.

He said the affected vehicles are widely used in commercial and industrial operations and are essential to sustaining local businesses and development projects.

Tiang also proposed expanding the diesel subsidy coverage to include NGOs and non-profit organisations, particularly religious bodies that use vehicles for social and welfare activities.

He said these organisations are not profit-driven and often operate with limited financial resources while providing essential services to those in need.

“For those who genuinely use diesel for commercial purposes and to earn a living, please consider their needs. We are not in a prosperous economic situation at the moment,” he said.

Tiang also urged the Ministry of Domestic Trade and Cost of Living (KPDN) to continue engaging with industry players and stakeholders, and to regularly review the eligibility criteria under the SKDS.

He said the review should be an ongoing process to ensure that those who genuinely require assistance are not excluded from the diesel subsidy programme. — DayakDaily

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