Its minister Armizan Mohd Ali said in a statement today that the movement was the result of the federal government’s decision to implement targeted diesel subsidy only for consumers across Peninsular Malaysia last month, and exempt those in Sabah, Sarawak and Labuan.
“We hope to bolster enforcement efforts in plugging the leakage of subsidies through monitoring and information dissemination. The misappropriation and smuggling of controlled goods are not only legal offences but also deny the people from enjoying their subsidy rights,” he said after opening a Petronas petrol station in Bukit Garam here.
Armizan, who is Papar MP, said trading of controlled goods is not only against the law but also sabotages the country’s economy and undermines the government’s efforts in distributing social assistance to those in need.
Meanwhile, he said exempting Sabah, Sarawak and Labuan from the targeted diesel subsidy would cost the government an estimated RM3.6 billion for this year.
According to Armizan, the key factor behind the federal government’s decision to continue the diesel subsidy in Sabah, Sarawak and Labuan was the high dependency of its consumers on diesel-powered vehicles.
It is also due to the considerations of the potential ripple effects where the prices of goods and services are higher compared with those in the peninsula, as well as the level of readiness and access to information among diesel users to implement subsidy profiling, he said.
“(However) the government does not deny that the issue of leakage caused by misappropriation and smuggling of diesel is also happening in Sabah, Sarawak and Labuan,” he added.
Armizan said the government had directed all relevant agencies, including his ministry, the customs department, police, road transport department, and border control agencies, to strengthen their enforcement strategies and approaches.
He also urged all parties, including the public, to report activities involving misappropriation and smuggling of subsidised controlled goods by lodging detailed and accurate complaints with the ministry.