Reasons for not implementing targeted diesel subsidy in Sabah, Sarawak

The government does not intend to implement targeted diesel subsidy in Sabah and Sarawak since a majority of the transportation for economic activities and development projects depend on diesel.

“The geographic condition there also limits the implementation of a fleet card mechanism that requires better facilities and infrastructure, especially in the interior areas,” said Finance Minister Datuk Seri Anwar Ibrahim.

He said this in a written reply to Datuk Dr Ahmad Yunus Hairi (PN-Kuala Langat) who questioned the rational of implementing targeted diesel subsidy only in the peninsula without involving Sabah and Sarawak.

He added that the implementation of targeted diesel subsidy in Peninsula Malaysia is the first phase that provides a space for fuel companies to develop and prepare itself with facilities and infrastructure necessary when the targeted subsidy is expanded to include Sabah and Sarawak.

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