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Diesel subsidy applications for Sabah, Sarawak and Labuan open May 4
Published on: Friday, May 01, 2026
Published on: Fri, May 01, 2026
By: Hayati Dzulkifli
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Diesel subsidy applications for Sabah, Sarawak and Labuan open May 4
For illustrative purposes only. - Getty Images/iStockphoto
PUTRAJAYA: Applications for registration under the Subsidised Diesel Control System (SKDS) for the land freight transport sector in Sabah, Sarawak and the Federal Territory of Labuan will open on May 4.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said applications can be submitted online via the official government portal at mysubsidi.kpdn.gov.my from 9am.

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He said land transport companies in the three regions must meet several conditions to qualify for diesel subsidies under the system.

Among the main requirements are that vehicles must have a valid and active Motor Vehicle Licence (LKM) and be registered as commercial vehicles with the Commercial Vehicle Licensing Board (LPKP) in Sabah or Sarawak.

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He said companies, businesses or cooperatives must also be registered with the Companies Commission of Malaysia (SSM), local authorities (PBT) or the Malaysian Cooperative Commission (SKM), and vehicles must fall under one of the 23 approved land freight categories under SKDS.

Armizan said the diesel subsidy rate for the land freight transport sector under SKDS has been set at RM2.15 per litre to help reduce operating costs, particularly in Sabah, Sarawak and Labuan.

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He advised applicants to ensure they meet eligibility requirements and select the correct registration category to avoid delays or rejection, adding that subsidised diesel purchases will be implemented through a fleet card system via selected oil companies.

He said approved companies can apply for fleet cards by submitting their approval letter and vehicle list to oil companies, with applications processed within two to three weeks and validity tied to the vehicle’s LKM, while urging eligible parties not to miss the opportunity to apply as the government remains committed to implementing targeted subsidies effectively.
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