Likas Assemblyman Tham Yun Fook said he has received numerous complaints from members of the public and business operators since the Federal Government announced the implementation of the BUDI Diesel Subsidy Scheme last month and imposed a limit of 200 litres of subsidised diesel per month for diesel-powered vehicles.
He pointed out that although the BUDI Diesel Subsidy Scheme allows company-owned diesel vehicles to apply for and purchase subsidised diesel, many businesses in Sabah have been excluded from the subsidy mechanism in practice, preventing them from enjoying the benefits they are entitled to.
“The issue is that many sole proprietorships in Sabah are not registered with the Companies Commission of Malaysia (SSM), but instead operate legally under business licences issued by local authorities. However, the BUDI Diesel Subsidy system appears to be linked only to the SSM database, resulting in legitimate businesses operating under local authority licences and their diesel vehicles being unrecognised by the system.”
He said that in reality, the owners of these sole proprietorships and the registered owners of the vehicles are often the same individuals. Yet, solely because of differences in registration systems, they have been excluded from the subsidy scheme.
“This situation is clearly unreasonable and highly unfair to law-abiding small and medium-sized enterprises (SMEs). Many SMEs rely heavily on diesel vehicles for their daily operations. Without access to subsidised diesel, their operating costs will increase significantly, placing additional financial burdens on them.”
Tham also highlighted the frustration faced by affected business owners who have been passed back and forth between government departments without any clear resolution.
“Some business owners who approached the Ministry of Domestic Trade and Cost of Living (KPDN) for assistance were told to visit the Road Transport Department (JPJ) to amend their commercial vehicle registration details. However, when they went to JPJ, they were informed that the matter fell under KPDN’s jurisdiction. Even more disappointing was that some JPJ officers responded poorly, stating that the inability to obtain the subsidy was not the department’s responsibility.”
Tham said he had personally raised the matter with the Director of KPDN Sabah and was assured that the issue would be addressed promptly.
“However, to this day, the system and procedures remain unchanged, and affected business owners are still unable to apply for the subsidy. Therefore, I urge the Ministry of Finance to take immediate action to resolve the system integration and data-matching issues so that all eligible businesses can receive the diesel subsidy they rightfully deserve.”
He stressed that Sabah has a vastly different geographical and economic landscape from Peninsular Malaysia, and that the Federal Government should not adopt a one-size-fits-all approach when formulating subsidy policies.
“The Government must take into account Sabah’s unique geographical conditions, long-distance transportation requirements, and infrastructure challenges in designing a subsidy mechanism that better reflects the realities on the ground in Sabah.”
At the same time, he questioned the Sabah State Government’s position regarding the implementation of the BUDI Diesel Subsidy Scheme in Sabah.
“Why has the State Government not clearly voiced its objections to the policy despite the widespread concerns raised by the people? Why has it not actively conveyed the difficulties faced by Sabahans to the Federal Government?”
He further noted that the current Minister of Domestic Trade and Cost of Living is himself a Sabahan leader.
“With so many complaints and concerns being raised by the people of Sabah, why has the Minister not stood up and strongly represented Sabah’s interests by urging the Federal Government to review and adjust this policy in order to reduce the burden on the people and businesses?”
Tham emphasised that the Government should focus more resources and effort on combating diesel smuggling and strengthening enforcement operations, rather than restricting the ability of legitimate businesses and ordinary citizens to purchase diesel, thereby creating unnecessary inconvenience and hardship.
