Kota Kinabalu: The expansion of the fleet card system for land freight operators to Sabah has been widely welcomed as a significant and transformative step towards ensuring more efficient and seamless diesel subsidy distribution across East Malaysia.
Sabah Chapter National Consumer Foundation Malaysia (YPNM) Chairman David Chan said the initiative reflects the government’s commitment to ensuring subsidies reach genuine transport operators while addressing long-standing issues of leakages and inefficiencies.
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He described the move, announced by Deputy Prime Minister Datuk Seri Fadillah Yusof, as crucial in supporting Sabah’s logistics ecosystem, which faces higher operating costs due to geographical challenges.
“YPNM views the fleet card mechanism as a positive step that can enhance transparency, reduce subsidy leakages, and safeguard the sustainability of government support amid rising global fuel prices and economic uncertainties,” he said.
During a briefing on the global energy crisis on Monday, Fadillah announced the expansion of the Subsidised Diesel Control Scheme (SKDS) to Sabah, Sarawak, and Labuan.
He also warned that firm action, including the suspension and revocation of approvals, would be taken against any parties found abusing the subsidies.
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Fadillah revealed that Ops Tiris 4.0 (Integrated), carried out from March 16 to April 5, recorded seizures of subsidised goods worth more than RM2 million following 8,148 inspections that resulted in 155 cases.
Of the total, 60 cases involved diesel with seizure values exceeding RM2.1 million, 47 cases involved RON95 (RM51,299), 21 cases involved liquefied petroleum gas (RM37,822), and 27 cases involved cooking oil, sugar and wheat flour.
Elaborating further, Chan said the structured implementation of the system is expected to strengthen monitoring and enforcement while fostering greater accountability among industry players.
He emphasised the importance of ensuring inclusivity for small-scale and rural operators, noting that a well-managed system would stabilise supply chains and maintain the affordability of essential goods, particularly in Sabah, where land transport plays a critical role in distribution.
“Sabah’s economy is highly dependent on land transportation for the distribution of goods. Any disruption or inefficiency in fuel subsidy mechanisms will have a direct impact on food prices, daily necessities, logistics and supply chain stability,” he said.
Chan also expressed confidence that with proper enforcement and clear guidelines, the initiative could deliver long-term benefits to both industry players and consumers.
The fleet cards system, he said, forms part of broader efforts to streamline fuel subsidy mechanisms, improve targeting and ensure sustainable fiscal management while safeguarding the welfare of the rakyat.
Meanwhile, Sabah United Chinese Chambers of Commerce (SUCCC) President Datuk Michael Lui said the fleet card rollout had to be carefully implemented to enhance efficiency without disrupting the existing SKDS relied upon by businesses.
He cautioned that introducing new measures without thorough consideration could create uncertainty and negatively impact development in the state.
“I called on the government to provide the public with a more detailed and comprehensive proposal and to engage in meaningful dialogue with local industry players... ensuring that policies are aligned with Sabah’s actual needs and long-term development goals,” he said.
Lui said the diesel subsidy system plays a crucial role not only in supporting transport operators but also in driving Sabah’s broader economic development, warning that any changes could increase costs for businesses and widen the development gap with Peninsular Malaysia.
“I cautioned that if new measures are introduced without thorough consideration, they could create uncertainty and negatively affect local development,” he said.
