Several senior state leaders contend that regional realities in Sabah and Sarawak—especially elevated transportation and distribution expenses—make the ongoing diesel subsidy both essential and defensible.

Sarawak Deputy Premier Datuk Amar Douglas Uggah Embong highlighted that delivering fuel to distant, low-population zones significantly raises costs. “Extended maritime routes, reduced delivery quantities and limited infrastructure all raise the landed price of diesel above levels in the Peninsula,” he elaborated. “Should the subsidy be removed or sharply cut, end-users—including farmers, fishermen and small enterprises—would face a dramatic rise in operating expenses.”

Sabah Finance Minister Datuk Seri Masidi Manjun echoed these points, noting that numerous rural communities depend on diesel generators for power and diesel boats for access to markets and healthcare. “This subsidy keeps vital services within reach for those with no viable alternatives,” Masidi said.

During a joint press conference on Monday, both officials reaffirmed their backing for the federal government’s plan to maintain diesel at RM2.05 per litre in East Malaysia, versus RM2.15 in Peninsular Malaysia. They explained that the RM0.10 differential reflects the additional logistical burdens.

“This subsidy is not a mere handout—it’s a focused policy to guarantee fair access to fuel,” Uggah Embong stressed. “Without it, rural households and small industries would bear an unfair share of the burden.”

Federal Energy Minister Takiyuddin Hassan has confirmed that Kuala Lumpur is tracking nationwide fuel-supply trends to avoid shortages but currently has no intention to unify diesel pricing across the country. He emphasised that any adjustments will acknowledge the distinct geographical and economic hurdles in the Bornean states.

Some critics in Peninsular Malaysia have questioned the equity of a dual pricing system, claiming it exerts extra pressure on federal finances. However, Sabah and Sarawak leaders argue the scheme actually equalises opportunities, helping to narrow the development and cost-of-living gap between West and East Malaysia.

“We should see this subsidy as investing in our connectivity and advancement,” Masidi said. “By keeping fuel costs down, we bolster trade, tourism and the daily livelihoods of our citizens.”

The diesel subsidy policy for Sabah and Sarawak will be reviewed in the coming months, and both state governments are seeking public input before making any changes.

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• Malaysia Property Guides & Tips

Note: This story was automatically sourced from reputable outlets. Details are provided for general purposes only. Always confirm project specs, prices and investment decisions with certified agents or official developers.