Company-Owned Pick-Up Trucks and SUVs Added to Malaysia’s Targeted Diesel Subsidy Programme
PETALING JAYA, July 3 — Malaysia has widened eligibility under its Subsidised Diesel Control System (SKDS), allowing company-owned pick-up trucks and sport utility vehicles (SUVs) used for business purposes to benefit from targeted diesel subsidies beginning later this month.
The expansion was announced by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, who said the latest measure is intended to provide additional support for micro and small enterprises that depend on diesel-powered vehicles for their daily operations.
Registration for the new category opens today, while approved applicants will become eligible to receive subsidised diesel from July 15 once their applications have been processed and fleet cards issued.
The newly introduced category expands the existing SKDS framework, which previously covered public land transport operators and businesses involved in transporting essential consumer goods.
With the latest revision, the programme now covers a total of 35 vehicle types and usage classifications.
Armizan said the initiative specifically targets sole proprietorships and partnership businesses, acknowledging that many small enterprises rely on company-owned pick-up trucks and utility vehicles to transport equipment, products and supplies.
He said broadening the programme would allow more eligible businesses to manage operating costs while ensuring that diesel subsidies remain targeted towards sectors requiring government assistance.
To qualify, vehicles must be registered as company-owned business vehicles under the “Private Company” (AE) usage classification recorded in the Road Transport Department’s (JPJ) MySikap database.
Businesses must also be legally registered with the Companies Commission of Malaysia (SSM), while applicants in Sabah and Sarawak may qualify if registered with their respective local authorities.
According to Armizan, diesel subsidies under the SKDS will continue to be distributed through the existing fleet card mechanism.
Each approved business will receive a predetermined diesel quota, with allocations varying according to factors such as vehicle body type, technical classification and approved usage category.
He urged eligible business owners to submit their applications through the MySubsidi portal as soon as possible to ensure they are able to access subsidised diesel once the expanded programme becomes operational on July 15.
The minister said the latest enhancement forms part of the government’s ongoing efforts to improve the efficiency of targeted subsidy delivery while directing public assistance towards businesses that genuinely require support.
Apart from the SKDS, Malaysia continues to implement several other targeted diesel assistance programmes under different ministries.
Individual diesel users who meet the qualifying criteria may receive support through the BUDI Diesel initiative administered by the Ministry of Finance.
Meanwhile, farmers, livestock breeders and smallholders remain eligible for assistance under the BUDI Agri-Komoditi programme, while diesel subsidies for fishermen continue to be managed separately through the Fishermen Diesel Subsidy Scheme under the Ministry of Agriculture and Food Security.
Armizan said the expansion demonstrates the government’s commitment to refining its targeted subsidy framework by adapting eligibility criteria to reflect the operational realities faced by smaller businesses that depend on commercial diesel vehicles, while maintaining accountability in the distribution of public subsidies.
