The Federal Government is expected to announce improvements to the targeted diesel subsidy mechanism within the next month, according to Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
Armizan said the Ministry of Domestic Trade and Cost of Living (KPDN) is optimistic that the announcement could be made earlier than the initial estimate of one to two months. He stressed that the ministry did not intend to pre-empt the Finance Ministry (MOF), which is responsible for the policy and allocation.
According to him, engagement sessions involving relevant stakeholders have already been conducted, with feedback from the Sabah and Sarawak state governments as well as KPDN submitted to MOF for consideration. Several improvements have also been identified to ensure the targeted subsidy mechanism continues to safeguard the interests of the people.
“We have fully submitted the feedback and input from the Sabah and Sarawak state governments, as well as KPDN, to the Finance Ministry,” he said after officiating the Sentuhan Kasih Programme, Jualan Rahmah MADANI and Safe Internet Campaign on Saturday.
On Aug 16, Finance Minister II Datuk Seri Amir Hamzah Azizan said the government was reviewing several improvements to the targeted diesel subsidy system, including simplifying the application process, relaxing eligibility requirements for vehicles under hire-purchase arrangements and allowing quota transfers to immediate family members.
Meanwhile, Armizan said KPDN has opened investigation papers under the Price Control and Anti-Profiteering Act against two ferry operators over an increase in passenger fares for services between Kudat and Banggi Island.
He said the companies had been issued notices seeking information at the end of March, but failed to respond. The matter subsequently prompted him to instruct the Malaysia Competition Commission (MyCC) to investigate possible elements of price-fixing after both operators announced fare increases at the same time.
“I have instructed MyCC to begin an investigation following complaints of possible collusion, as both companies announced the fare increase together. Any form of price-fixing is an offence under the Competition Act,” he said.
Addressing claims that the ferry operators were not receiving diesel subsidies, Armizan explained that public passenger ferries are eligible for subsidised diesel through skid tanks by submitting applications to the Marine Department Malaysia.
However, checks by the ministry found that both ferry operators had yet to submit any formal applications, despite being advised by the relevant authorities to do so.
Armizan also suggested that the Sabah state government consider taking over the regulation and licensing of passenger ferries under the Sabah Ports and Harbours Department to encourage greater competition in the market.
He said the proposal would be brought to the attention of Sabah Deputy Chief Minister III Datuk Ewon Benedick, who is also the state Minister of Industrial Development, Entrepreneurship and Transportation and oversees the transportation and ports portfolio.
