SANDAKAN: Tanjong Papat Assemblyman Alex Thien has urged the Federal Government to review and temporarily defer the implementation of the new nationwide diesel subsidy mechanism, saying that while subsidy reform is necessary to curb illegal diesel trading and leakages, the current system has unfairly excluded many law-abiding Sabahans from accessing subsidised diesel.
He stressed that authorities should strengthen enforcement against illegal syndicates instead of imposing restrictions that penalise legitimate users.
Thien also criticised the rollout of the policy, revealing that officers at the Sandakan office of the Ministry of Domestic Trade and Cost of Living (KPDN) were unable to explain certain implementation details when he sought clarification. He said the incident reflected inadequate coordination and briefing between the Federal Government and frontline agencies before the policy took effect.
He argued that the roughly one-week gap between the announcement and implementation showed insufficient preparation for a nationwide policy. According to Thien, the government should have conducted pilot projects and consulted extensively with Sabahans, enforcement agencies, businesses, SMEs and other stakeholders before finalising the mechanism, rather than issuing repeated clarifications after implementation.
Thien also questioned the data used to formulate a uniform nationwide diesel subsidy policy, asking how the government could accurately assess Sabah’s diesel consumption without comprehensive records on local usage patterns. He said relying on national averages ignores Sabah’s unique geographical realities, where long-distance travel between rural and urban areas is part of daily life.
Responding to claims that most diesel users consume less than 200 litres monthly, Thien said such figures were based on national statistics that do not reflect Sabah’s circumstances. He urged the government to disclose whether it has sufficient data on household vehicle sharing, travel distances, diesel consumption and rural mobility before using such statistics to justify the policy.
To address practical issues, Thien proposed introducing a “co-user registration” system through the Road Transport Department (JPJ), allowing family members who regularly use a vehicle to qualify for diesel subsidies. He said requiring ownership transfers is impractical, especially for vehicles still under hire-purchase loans, and fails to reflect common household vehicle usage in Sabah.
He also warned that the mechanism could significantly affect SMEs, particularly those in Sabah’s transport, logistics, retail and construction sectors that rely heavily on diesel-powered vehicles. Rising operating costs, he said, would eventually be passed on to consumers, and he proposed creating a separate subsidy category for company-owned commercial vehicles to improve clarity and operational efficiency.
Responding to Sabah Pakatan Harapan information chief Datuk Chan Foong Hin’s description of the mechanism as “comprehensive, fair and not burdensome,” Thien disagreed, saying continued concerns across East Malaysia showed otherwise. While reaffirming Sabahans’ support for efforts to combat subsidy abuse and illegal diesel trading, he urged the Federal Government to defer the mechanism, conduct comprehensive studies and field assessments, particularly in Sabah, and refine the policy to better reflect local realities while protecting law-abiding citizens. – James Leong
Alex Thien argued that the roughly one-week gap between the announcement and implementation showed insufficient preparation for a nationwide policy.
