KUCHING: Prime Minister Datuk Seri Anwar Ibrahim has clarified the federal government’s decision to exempt Sarawak and Sabah from the diesel subsidy rationalisation exercise, citing higher diesel usage in these states compared to Peninsular Malaysia.
He said the exemption was not due to demands or pressures but rather based on a thorough understanding of the circumstances specific to these regions.
“We have exempted Sabah and Sarawak from the diesel subsidy rationalisation because, in these states, diesel usage is higher. Nearly every boat and vehicle relies heavily on diesel.
“Implementing it would be challenging due to the extensive diesel usage in these regions. But, we have implemented the rationalisation of diesel subsidies in Peninsular Malaysia.
“Although it has sparked some controversy, diesel consumption there is not as high, particularly for diesel vehicles,” he said.
He said this during the 2024 Sarawak state-level Gawai Dayak Gala Dinner held at Borneo Convention Centre Kuching (BCCK) last night (June 22).
Anwar assured that individuals such as school bus operators, fishermen, farmers and small business operators are still receiving assistance and are not adversely affected by the subsidy rationalisation measures.
“Through the rationalisation of diesel subsidies approach, the government could save RM4.5 billion,” he said.
He added the subsidies given by the government are intended to benefit the B40 and M40 groups.
“But, the subsidies are being enjoyed by those who are rich too, including more than 3.5 million foreigners who do not pay taxes.
“I think that if this policy continues, it does reflect prudent economic management,” he said.
He said therefore the subsidies will be targeted, primarily benefiting 85 percent of the country’s population who fall within the B40 groups.
“I want to take this opportunity to explain this policy so there are no misunderstandings.
“Although I have been criticised by some MPs in Peninsular Malaysia, questioning why Sabah and Sarawak are exempted, I invite them to visit these states to understand better.
“As one nation, we must understand the specific needs of different states,” said Anwar.
