The Malaysian Government is currently re-evaluating the Subsidised Diesel Control Scheme (SKDS) in Sabah and Sarawak to determine if the existing framework should be maintained or restructured through a fresh approach.
Government Spokesman Datuk Fahmi Fadzil confirmed that the matter was deliberated during a Cabinet meeting following feedback from enforcement committees tasked with tackling fuel smuggling in the two states.
According to Fahmi, the refinement of the SKDS mechanism is essential to ensure that diesel subsidies are distributed effectively and are not subject to abuse. He emphasised that the scrutiny would focus on whether the current system remains viable or if a completely different framework is required to plug existing loopholes.
The Cabinet meeting also addressed the division of responsibilities among various enforcement agencies to strengthen monitoring efforts. Under the proposed coordination, the Ministry of Domestic Trade and Cost of Living (KPDN) will oversee enforcement on land, while the Malaysian Maritime Enforcement Agency (MACC) will be responsible for patrolling waters and rivers. Border security remains under the purview of the Border Protection and Control Agency (AKPS), with further details currently being finalised.
Fahmi, who also serves as the Communications Minister, highlighted that the committee raised ongoing concerns regarding the misappropriation and illegal sale of subsidised diesel. He assured that integrated actions are being taken by all relevant agencies to minimise leakages and ensure that government subsidies reach the intended target groups.
