Government Drafting New Regulations to Tighten Control Over Fuel Subsidy Fleet Card Abuse
KOTA KINABALU: Ministry of Domestic Trade and Cost of Living is preparing a new regulatory framework under the Control of Supplies Act 1961 to strengthen enforcement against the misuse of fleet cards linked to Malaysia’s subsidised fuel distribution system.
Its minister, Armizan Mohd Ali, said the proposed regulations are aimed at establishing a clearer and more comprehensive legal structure to improve monitoring, implementation and enforcement involving fleet card usage.
According to him, the federal government remains committed to tightening controls over the Subsidised Diesel Control Scheme (SKDS) and the Subsidised Petrol Control Scheme (SKPS) to reduce leakages and abuse involving fuel subsidies.
He explained that the proposed regulations would define the responsibilities of fleet card holders and oil companies while introducing stricter offences and penalties for subsidy-related violations.
Armizan Mohd Ali said authorities had detected various methods used to siphon and misappropriate subsidised diesel and petrol through misuse of fleet cards.
“From 2023 until May 14 this year, a total of 223 fleet cards under SKDS and SKPS have already been blocked due to suspected misuse involving subsidy leakages,” he said during a press conference after attending the Buy Malaysian Goods Inspiration Programme today.
He stressed that the ministry intends to impose stronger punishment against offenders, including appropriate financial penalties, instead of merely suspending fleet card usage.
In a related announcement, Armizan Mohd Ali said the diesel subsidy distribution mechanism for the land transport sector under SKDS will soon be expanded to Sabah, Sarawak and Labuan.
He said registration applications for transport companies in the three regions opened on May 4 as part of the initial rollout phase.
Under the current implementation of SKDS, 23 categories of land transport vehicles are eligible for subsidised diesel priced at RM2.15 per litre.
Touching on the Buy Malaysian Goods Inspiration Programme, Armizan Mohd Ali said the initiative serves as a strategic platform to promote local industries and stimulate demand for Malaysian-made products.
The programme brings together businesses from multiple sectors including food and beverages, fashion, lifestyle, beauty, handicrafts and services involving micro, small and medium enterprises as well as established local premium brands.
-wilayah.com.my
