The Domestic Trade and Cost of Living Ministry of Malaysia announced it is drafting specific regulations under the Control of Supplies Act 1961 to create a clearer legal framework for managing fleet card use in fuel subsidy programs [1, 2]. The planned regulations will define the responsibilities of fleet card holders and oil companies, along with offences and punishments for subsidy abuse [1, 2].
Since 2023 through May 14, authorities have blocked 223 fleet cards linked to the Subsidised Diesel Control Scheme (SKDS) and Subsidised Petrol Control Scheme (SKPS) due to misuse [1, 2]. The ministry aims to impose stricter penalties, such as fines against parties found embezzling fuel subsidies, rather than only restricting card use [1, 2].
Datuk Armizan Mohd Ali, the Domestic Trade Minister, said in a press conference on May 16, "KPDN will continue to strengthen monitoring and enforcement at the field level and any party who misuses fleet cards for the purpose of embezzling diesel and petrol subsidies will be subject to strict action" [2].
The SKDS diesel fuel subsidy, currently covering 23 categories of land transport vehicles at RM2.15 per litre, will expand to include Sabah, Sarawak, and Labuan. Registration for companies in these regions began on May 4 [1, 2].
This subsidy program is part of the Kita Beli Barangan Malaysia initiative designed to support local industry demand and promotion [1, 2].
The ministry’s next step is to finalize the drafted regulations for enforcement to better regulate fleet card usage and curb subsidy fraud across Malaysia’s land transport sector [1, 2].
