Malaysia’s LKIM has suspended diesel subsidies and blacklisted 119 fishing vessels to curb leakage, with deep-sea fishermen ineligible for support.
KUALA LUMPUR: The Fisheries Development Authority of Malaysia (LKIM) has suspended diesel subsidies and blacklisted 119 fishing vessels and boats as of August.
Finance Minister II Datuk Seri Amir Hamzah Azizan said this firm action aims to curb subsidy leakage.
Since 2019, the government has limited the subsidised diesel quota for the fishing sector to 70 million litres per month.
This is down from the previous allocation of 80 million litres per month.
Coastal fishermen and those operating in Zones A, B and C benefit from subsidised diesel priced at RM1.65 per litre.
The subsidy helps offset part of their operating costs.
However, deep-sea fishermen operating in Zone C2 are not eligible for subsidised diesel.
Amir Hamzah said these commercial fishermen generally have stronger financial capacity.
“This is part of the government’s efforts to address the issue of diesel leakage, particularly in deep-sea areas,” he said.
He was responding to a question from Datuk Awang Hashim (PN-Pendang) about diesel subsidy leakage.
The government has also developed the MyIsytihar application since 2024 as a control measure.
This requires fishermen receiving diesel subsidies to declare their catch to LKIM.
Enforcement operations continue to be strengthened through strategic collaboration with agencies.
Integrated operations aim to enhance border control and curb smuggling via land and sea routes.
Regarding targeted diesel subsidy impact, 180,000 farmers and smallholders have benefited from BUDI Agri-Komoditi.
Payments totalling RM350 million were made as of September 30, 2025.
The assistance includes RM200 per month or RM2,400 per year for registered farmers and breeders. – Bernama
