KOTA KINABALU, March 27 — Sabah DAP Deputy Chairperson and Kota Kinabalu MP Chan Foong Hin has expressed strong support for Prime Minister Anwar Ibrahim’s decision to maintain the diesel subsidy in Sabah and Sarawak at RM2.15 per litre, despite significantly higher prices of RM5.52 per litre in Peninsular Malaysia.
Chan said the move reflects a clear understanding of the unique challenges faced in East Malaysia, where geography, infrastructure gaps and logistical constraints make diesel an essential resource, particularly in rural and interior where communities rely heavily on diesel-powered transport.
He stressed that the subsidised rate should not be viewed as a privilege, but as a necessary measure to address regional disparities, noting that higher transportation costs in Sabah and Sarawak already contribute to increased prices of goods and services.
“The decision to maintain diesel at RM2.15 in Sabah and Sarawak is not a privilege, but a necessity. Our geographical realities and infrastructure limitations mean that diesel is essential for daily life, especially in rural and interior areas,” he said.
Chan added that any increase in fuel prices would directly impact households, small businesses and local economic activities, further raising the cost of living in the two states.
He also pointed out that diesel subsidies for Sabah and Sarawak rose from RM2 billion in 2025 to RM4.6 billion this year, reflecting the MADANI government’s commitment to balanced and inclusive development across all regions.
Touching on global factors, Chan noted that ongoing tensions in the Middle East continue to affect energy supply, particularly along critical routes such as the Strait of Hormuz. He also welcomed the Prime Minister’s diplomatic engagement with Iran’s President Masoud Pezeshkian, which has ensured the safe passage of Malaysian vessels.
“At the same time, this reminds us that the cost of living is closely tied to global developments. We must remain vigilant and prepared for potential changes in energy prices,” he said.
Chan emphasised that the policy should not be politicised, describing it as part of a broader national effort to address regional differences and promote equitable development.
“Stability and continued development in Sabah and Sarawak are vital to the overall strength and unity of Malaysia,” he added.
