KUCHING: Bandar Kuching MP Dr Kelvin Yii says he will be pushing for the Cabinet and the ministry to consider giving special consideration and exemption to Sabah and Sarawak in the implementation of the targeted petrol subsidy scheme and maintain the current subsidy system, especially for RON95 (RM2.08) and diesel in Sabah and Sarawak.
“This is in view of the recent announcement by both Domestic Trade and Consumer Affairs minister Saifuddin Nasution Ismail and deputy minister Chong Chieng Jen on the proposed mechanism on the implementation of the targeted subsidy scheme although it has to be finalised and decided by the Cabinet,” he said.
“The federal government is currently subsidising the price of RON95 and diesel and capping RON95 at RM2.08 while the price of RON97 is floated weekly.
“Based on official statements by the Ministry of Finance, the government spent a total of RM4.89 billion in subsidies for RON95 and diesel between January and November, 2018.
“For this year, the federal government spent about RM50 million a week in subsidy from Aug 23 to Sept 13. Currently, the federal government is spending even more due to the higher prices of oil due to conflicts in the Middle East,” Dr Yii explained.
Based on the announced proposal, he said the petrol subsidy scheme was only applicable to Malaysian households earning below than RM3,900 a month with cars under 1,500cc and motorcycles under 125cc.
“Cars will be eligible for a subsidy of 30 sen and motorcycles, 12 sen per litre of RON95 petrol, limited to two cars and two motorcycles per household.
“While I understand the heavy financial implication it may cost the government as well as the risk that such subsidies are abused to benefit those that are not qualified, I urge that Sabah and Sarawak to be given special consideration in view of our huge contributions to federal coffers, especially with our oil and gas resources.
“This will send a strong message of appreciation and special consideration to Sarawak and Sabah for our contribution to the federal government as well as recognition of our special status in the federation.
“On top of that, the proposed targeted scheme may not be so practical in the context of Sabah and Sarawak as here, many families own higher CCs vehicles not because they are rich but out of necessity due to the road conditions and ground terrains of both these territories,” he said.
According to him, in his past parliamentary debate, he had urged that Sarawak be given special consideration due to the higher usage of these vehicles, especially in rural areas and also among other rural transportation like longboats or express boats.
Dr Yii acknowledged that a proper check mechanism had to be in place to make sure that those intended parties benefitted from the system rather than it being abused and used to profit the rich.
He also called for the border patrol to be more vigilant so that subsidised fuel are not sold to neighbouring countries or even commercial factories where these subsidies are not intended to benefit.
