Registration Opens for Diesel Subsidy System in Sabah, Sarawak and Labuan, Says Armizan

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Kuala Lumpur 5 May 2026 (The Capital Post) – Registration for the diesel subsidy system has officially opened in Sabah, Sarawak and Labuan, allowing eligible users to apply for targeted fuel subsidies, according to Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

Armizan said the initiative is part of the government’s broader effort to streamline subsidy distribution and ensure that assistance reaches the intended groups more efficiently.

The system is designed to benefit specific sectors that rely heavily on diesel, including logistics, transportation, and small businesses, particularly in East Malaysia where fuel usage is critical for daily operations.

He urged eligible individuals and businesses to register promptly to avoid disruptions, as the targeted subsidy mechanism aims to replace blanket subsidies with a more structured and sustainable approach.

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Authorities added that the registration process will help build a comprehensive database to improve transparency and reduce leakages in subsidy distribution.

The rollout marks another step in Malaysia’s subsidy rationalisation strategy, which seeks to balance fiscal responsibility with the need to support key economic sectors and vulnerable groups.

Further details on eligibility criteria and implementation timelines will be communicated through official government channels as the registration phase progresses.-The Capital Post