The Malaysian federal government is set to announce improvements to the diesel subsidy mechanism within a month, according to the Ministry of Domestic Trade and Cost of Living (KPDN) and multiple sources [1, 2, 3, 4]. KPDN Minister Datuk Armizan Mohd Ali expressed optimism that the announcement could come earlier than the previously estimated one to two months timeframe given by the Finance Minister II on August 16 [1, 2, 3, 4].
Minister Armizan confirmed that feedback and input from the Sabah and Sarawak state governments, alongside KPDN, have been fully submitted to the Ministry of Finance (MOF), which oversees the subsidy mechanism. He said, "Feedback and input from the Sabah and Sarawak state governments, as well as KPDN, have been fully conveyed to the MOF as the federal government agency responsible for the matter" [1].
Identified improvements include simplifying the application process, relaxing eligibility for hire-purchase vehicle takeovers known as "sambung bayar," and allowing quota transfers between immediate family members to better target subsidy recipients and streamline access [1, 2, 3, 4]. In Mandarin, Armizan described the improvements as measures to ensure the subsidy mechanism protects public interests when implemented [4].
Meanwhile, KPDN has opened investigation papers under the Price Control and Anti-Profiteering Act against two ferry operators on the Kudat-Banggi Island route. The ferries raised fares jointly but failed to respond to data requests issued in late March. Armizan said, "I directed MyCC to begin an investigation following complaints that there were elements of collusion, as both companies had jointly announced fare increases. Any element of price-fixing is a violation of the Competition Act" [2].
Public passenger ferries qualify for subsidised diesel through skid tanks after applying to the Malaysia Marine Department. However, the two ferry companies have not submitted official subsidy applications despite guidance. "Our checks found that both ferry companies have yet to submit their official applications," Armizan said [3].
There is also a proposal for the Sabah state government to consider placing ferry regulation and licensing under the Sabah Ports and Harbours Authority to enhance market competition [4].
The government’s next step is the expected diesel subsidy improvements announcement within one month, as confirmed today by Minister Armizan Mohd Ali [1, 2, 3, 4].
