Ascertain usage before raising subsidy quota, says economist

Economist Tan Peck Leong has warned the government to ascertain genuine need before increasing the diesel subsidy quota, citing data-driven decision-making. In rural Sabah and Sarawak, the government is considering a blanket 500-litre diesel subsidy quota, but Tan argues that actual consumption data is available to help determine appropriate subsidy amounts.

While calls for a higher quota are understandable given the difficulties faced by rural communities, Tan warns that a blanket increase could undermine the aim of targeted subsidies to curb leakages and smuggling. Transport consultant Rosli Khan also opposes a blanket increase, arguing that higher fuel consumption should not be the sole determinant of eligibility for additional subsidies.

Tan proposes an AI-assisted appeal system that assesses factors such as postcode, vehicle type, and fuel-use patterns to recommend additional quotas, ensuring assistance reaches those who genuinely need it without extending broader quotas.