Armizan Introduces Staged Rollout of Targeted Diesel Subsidy for Sabah and Sarawak

The federal government will start implementing a targeted diesel subsidy in Sabah and Sarawak later this year, deputy domestic trade and costs-of-living minister Datuk Armizan Mohd Ali announced today. The programme, aimed at deterring smuggling and ensuring aid reaches those who need it most, will be rolled out in two stages.

In the first step, small-scale agricultural producers—such as oil-palm smallholders holding valid scheme licences—will be invited to register for subsidised diesel via an online portal. Each approved participant will receive a smart card that allows purchases of up to 1,000 litres of diesel per month at a capped rate of RM 2.15 per litre. Registration is slated to begin in mid-July, with card distribution set to follow shortly thereafter.

The second step, aimed primarily at registered fishermen, will commence a month later. State agriculture and fisheries offices in both Sabah and Sarawak will manage applications and issue the cards. Armizan said the government anticipates the phased rollout to extend into the final quarter of the year—starting in Sarawak before moving to Sabah—and expects the tighter focus to lower overall subsidy costs while supporting vulnerable rural communities. Commercial operators and other industries will continue to purchase diesel at prevailing market rates.

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