Targeted diesel subsidy system improvements expected in ‘1 to 2 months’

In the next one to two months, the Malaysian government plans to make several improvements to the targeted diesel subsidy system. Finance Minister II, Datuk Seri Amir Hamzah Azizan, revealed these plans during a press conference after a budget engagement session in Tawau. The improvements include streamlining the application process and reviewing eligibility requirements for recipients.

Amir Hamzah highlighted issues such as vehicles with "sambung bayar" (taking over hire-purchase payments), owners owning more than one vehicle, and the transfer of quotas to immediate family members in certain circumstances. He emphasized that these improvements aim to make the implementation of the targeted diesel subsidy easier and ensure that government assistance reaches eligible individuals.

Currently, about 120,000 owners of four-wheel drive vehicles in Sabah are eligible to apply for a 300-litre diesel subsidy quota, following an expansion of eligibility to this category. However, only around 49,000 vehicle owners have applied so far. Amir Hamzah stressed the importance of informing eligible vehicle owners about the assistance available and encouraging them to apply. The Ministry of Finance has provided facilities and mechanisms to facilitate applications.

To assist those who may face difficulties in applying online or are less tech-savvy, the government is collaborating with the Inland Revenue Board (IRB), the Urban Transformation Centre (UTC), and oil companies. Applicants can seek support at LHDN and UTC branches, while oil companies will offer assistance at petrol stations. The hope is that all eligible vehicle owners in Sabah will apply to take advantage of the provided assistance and quota.