Small companies and local contractors in Sabah, Sarawak and Labuan will receive a monthly quota of 300 litres of subsidised diesel through fleet cards, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said. 

The quota applies to diesel vehicles registered under partnerships or sole proprietorships for business use, following the rollout of the targeted diesel subsidy programme in the three areas on 1 July.

The measure was brought forward by the ministry and approved by the Federal Cabinet to help micro-entrepreneurs who previously struggled to apply for assistance under individual names.

A New Category For Small Businesses

Small companies were previously left out of subsidised diesel entirely, since the Subsidised Diesel Control System (SKDS) only covered two categories, public transport and goods or consumer necessities transport, Armizan said. This new 300-litre monthly allowance gives them access to the same RM2.15 a litre subsidised rate, instead of paying the RM4.37 market price other unregistered businesses face.

Registration for SKDS fleet cards is done through the MySubsidi portal, where businesses can check their eligibility and apply. Companies needing more than their allocated quota can also submit an appeal to the Petroleum Subsidy Approval Committee via mysubsidi@kpdn.gov.my

State Agencies To Assist With Registration

Armizan said to strengthen diesel subsidy delivery in the interior areas of Sabah and Sarawak, state-level agencies will be mobilised to help with registration and verify eligible target groups so that no one is left out.

The Federal Government remains open to further improving the subsidy’s implementation in Sabah, Sarawak and Labuan, guided by three factors: the cost impact on the public, managing the risk of leakage, and the government’s fiscal space.

Part Of A Growing Subsidy Bill

This quota adds to a fuel subsidy bill that’s already growing quickly nationwide. The government previously said diesel subsidy rationalisation is helping curb leakage and save roughly RM5 billion a year, even as overall fuel subsidy costs are expected to nearly triple this year due to global oil price pressure.

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Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

About THE AUTHOR

Iman Aminuddin

Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

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