MIRI: The decision to maintain diesel subsidies in Sabah and Sarawak is seen as a critical step in protecting the people's cost of living and ensuring the economic viability of rural areas in East Malaysia.

Sarawak Transport Minister and Senadin Assemblyman Dato Sri Lee Kim Shin explained that this decision takes into account Sarawak’s vast geographical reality, its scattered rural communities, and the high dependency on diesel as a primary source for mobility and the economy.

According to him, the diesel subsidy is not merely an economic policy; rather, it is a basic necessity that supports the daily lives of the people, including access to services, transportation, and income sources.

He said this when met by the media after officiating the Curtin University ‘The Greater Escape 2036’ programme on Friday.

He added that high logistics and transport costs resulting from geographical factors have a direct impact on commodity prices and living expenses; therefore, maintaining the subsidy plays a role in stabilising prices and reducing the financial burden on the people.

At the same time, he emphasised that key sectors such as agriculture, fisheries, and plantations—which rely heavily on diesel—require continuous support to prevent disruptions to the local economic chain.

Furthermore, he noted that the implementation of targeted subsidies in rural and interior areas faces significant challenges regarding execution and the effectiveness of aid delivery.

In this regard, he is of the view that the existing approach is more practical and inclusive in ensuring that assistance reaches those who truly need it. — UKASnews

Translator: Ryan Lim