Kota Kinabalu: The Ministry of Domestic Trade and Cost of Living (KPDN) is drafting a proposed specific legal provisions under the Supply Control Act 1961 to tighten regulations of fleet card usage in relation to the distribution of fuel subsidies through the Subsidised Diesel Control Scheme (SKDS) and the Subsidised Petrol Control Scheme (SKPS).
KPDN Minister Datuk Armizan Mohd Ali said such move aims to establish a clearer, more comprehensive and well-organised for the implementation, regulation and enforcement of fleet card usage in a stricter and more effective manner.
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He said the new regulations would cover the responsibilities of fleet card holders and oil companies which issue the fleet cards, while also detailing offences and penalties for any form of subsidy abuse by misusing the fleet cards.
“The government is committed to ensuring that diesel and petrol subsidies reach only the eligible groups and sectors, while closing any loopholes that could be manipulated by irresponsible parties.
“As such, KPDN is currently drafting the proposed specific regulations under the Supply Control, following detection of several modus operandi involving leakages and misappropriation of subsidised diesel and petrol through the misuse of fleet cards.
“From 2023 until May 14, 2026, a total of 223 fleet cards under the implementation of SKDS and SKPS had been blocked after being detected involved in suspicious activities and violations of misusing the fleet card usage,” Armizan said.
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He said this in a press conference that was held in conjunction with the ‘Kita Beli Barangan Malaysia (KBBM) programme, officiated by Chief Minister Datuk Seri Hajiji Haji Noor, at Sabah International Convention Centre here on Saturday.
To a question, Armizan said among the main offences identified from the 223 blocked fleet cards, was the use of subsidised diesel purchased through fleet cards by vehicles that were not registered under the respective fleet cards.
“Such abuse of the fleet card is clearly an offence because each fleet card is registered not only under the name of the eligible company in the goods transportation or public land transport sector, but is also specifically tied to particular vehicles from 23 categories of vehicles.
“There were also cases that we detected, such as one in Johor recently, where our enforcement officers uncovered premises being used to store diesel collected in small quantities. The diesel was kept in large containers at the premises for certain purposes and for sale to industries by imposing non-subsidised pricing.
“We found three fleet cards at the concerned premises which indicates that one of the modus operandi involving fleet cards is purchasing small amounts of diesel repeatedly and then accumulating it at such premises.
“So, in certain cases, we immediately blocked the fleet cards involved. That is why it is important for us, at this stage, not only to impose restrictions or block the fleet cards but to introduce specific regulations that are clearer and more comprehensive to act as deterrent against these violations and act of misusing the fleet cards,” he said.
According to Armzian, KPDN has already prepared the draft regulations and need to go through several processes, including engagement sessions with stakeholders.
“It must also go through the Regulatory Impact Analysis (RIA) process, as well as, most importantly, engagement with the Attorney General’s Chambers.
“Only then can I bring the matter to the Federal Cabinet before the regulations are gazetted and enforced.
“However, at the KPDN level, we are already prepared with the draft, and we are aiming to complete all these processes as quickly as possible so that the regulations can be enforced immediately,” he said.
Previously, Armizan said the SKDS fleet card system for the Goods Transportation Sector was only implemented in Peninsular Malaysia, and he is confident that with registration now opened to Sabah, Sarawak and Labuan, its usage will increase significantly.
“As such, the need to establish specific legislation through dedicated regulations under the Supply Control Act 1961 is extremely important and must be expedited to deter misappropriation of the fuel subsidies,” he said
Armizan said KPDN will continue strengthening monitoring and enforcement at the ground level, and any party found misusing fleet cards for the misappropriation of diesel and petrol subsidies will face stern action.
He said the government will not compromise with any party attempting to take advantage of the subsidy system created to assist eligible rakyat and economic sectors.
He also issued a stern reminder that the government would continue ensuring subsidies are channelled only to those genuinely eligible, while safeguarding the interests of the rakyat and the nation’s finances.
