Sabah urges targeted diesel subsidies for tourism due to island and interior reliance on fuel for power and transport.
KOTA KINABALU: The federal government has been urged to give special consideration to Sabah’s tourism industry in the implementation of targeted diesel subsidies, including incorporating the sector into the subsidy mechanism or a more suitable form of support.
Sabah Minister of Tourism, Culture and Environment Datuk Jafry Ariffin said this was important due to Sabah’s unique geography and operational realities, particularly in island and interior areas that still depend on diesel.
He said diesel is not only used for electricity generation but also serves as a key energy source for transportation, logistics and various economic activities, including tourism operations.
As such, Jafry said the 200-litre monthly subsidised diesel quota was insufficient to meet the operational needs of tourism operators in Sabah’s islands and interior areas, adding that his ministry had received numerous complaints from industry players who rely entirely on the fuel.
“Most tourism islands in Sabah are not connected to the electricity grid, and diesel is not a choice but a basic necessity to sustain operations for electricity supply, sea transport, logistics and overall daily activities,” he said in a statement today.
Jafry said a large number of tourism operators in Sabah do not fall under the eligibility category of the Subsidised Diesel Control System, forcing them to bear higher operating costs without any form of assistance.
“The tourism industry is among the main contributors to Sabah’s economy and provides employment opportunities for thousands of people in the state. Therefore, any policy related to diesel subsidies must take into account the operational realities of the industry in Sabah so that it can continue to grow sustainably.
“I am confident that the federal government will consider this appeal constructively to ensure the objective of subsidy rationalisation is achieved without affecting the sustainability of Sabah’s tourism industry,” he said.
Jafry also said the situation was concerning as Sabah’s tourism industry had not yet entered its peak season, which could lead to higher operating costs and impact profit margins and cash flow for operators.
He also said an official letter seeking special consideration for Sabah’s tourism industry had been sent to Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali and Deputy Economy Minister Datuk Indera Mohd Shahar Abdullah.
