Finance Minister II Datuk Seri Amir Hamzah Azizan said the Malaysian government is studying several improvements to the targeted diesel subsidy system and expects to announce them within the next one to two months [1, 2, 3, 4, 5]. The proposed changes aim to simplify the application process, relax eligibility for vehicles taken over through hire-purchase (‘sambung bayar’), and allow quota transfers to immediate family members [1, 2, 3, 4, 5, 6].
The targeted diesel subsidy is designed to ease cost-of-living burdens at the grassroots level. The government wants subsidy allocations to have a tangible impact by improving delivery and ensuring those truly eligible benefit optimally, according to Amir Hamzah [1, 2]. “Through the 2027 Budget Tour series, we are examining various improvements to the targeted diesel subsidy mechanism,” he said [2].
In Sabah, approximately 120,000 owners of pickup trucks and jeeps have been identified as eligible for a diesel subsidy quota of more than 300 litres each. However, only about 49,000 eligible owners have registered and submitted applications so far [1, 2, 3, 4, 5, 6]. The government encourages more eligible vehicle owners in Sabah to apply immediately, emphasizing that application facilities and channels are already available [3].
The Finance Ministry is working with the Inland Revenue Board (LHDN), Urban Transformation Centres (UTC), and oil companies to provide application guidance at counters and petrol stations. This assistance targets applicants who are less familiar with technology [1, 2, 3, 4, 5, 6]. Amir Hamzah said, “Applicants can get assistance at LHDN and UTC branches while oil companies also assist at petrol stations. We hope that out of the approximately 120,000 eligible vehicle owners in Sabah, all of them will be able to apply so that they can enjoy the assistance and quota that has been provided.” [6]
The announcement on the improvements is expected within the next one to two months, likely after engagements related to the 2027 Budget [1, 6]. The government aims for more effective and comprehensive delivery of assistance via the diesel subsidy.
