Government to Review Diesel Subsidy for Fishermen, Including Zone C2, Amid Rising Energy Costs
PUTRAJAYA, April 2 — The Malaysian government is set to reassess diesel subsidy claims for fishermen, including those operating in Zone C2 deep-sea areas, as part of broader discussions at national-level economic meetings in response to the ongoing global energy crisis.
Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said the matter will be examined in detail during meetings of the National Cost of Living Action Council (NACCOL) and the National Economic Action Council (MTEN), with the aim of refining subsidy mechanisms to ensure sustainability and fairness.
He highlighted that the government is currently facing a sharp increase in fuel subsidy expenditure, which has surged from approximately RM700 million to RM3.5 billion.
“This represents a significant financial burden. We must approach this issue rationally, recognising that the current pressures are driven by global factors, particularly developments in the Middle East,” he said after attending a ministry event.
Inclusive Approach to Fishermen Support
Addressing concerns from the fishing community, Zahid confirmed that deep-sea fishermen in Zone C2 will also be included in the review process.
He noted that decisions will be made after evaluating operational costs, economic conditions, and the government’s fiscal capacity.
“We want to ensure that assistance is targeted and reaches those who genuinely need it. All categories of fishermen will be considered,” he said.
This move is seen as crucial in helping the fishing industry remain viable amid rising fuel prices, which directly affect daily operations.
Rural Communities Face Growing Pressure
Zahid also pointed out that the global energy crisis is having a widespread impact on rural populations, affecting an estimated 8.1 million people across Malaysia.
Smallholder rubber farmers, who contribute around 84.7 per cent of the country’s natural rubber production, are among the most vulnerable due to rising input costs and volatile commodity prices.
In addition, more than 224,000 Orang Asli individuals are facing increased challenges, as higher fuel costs disrupt essential services such as water supply, student transportation, healthcare access, and the delivery of basic aid in remote areas.
“As fuel costs rise, the entire logistics chain is affected, placing additional strain on daily life,” he said.
Potential Cash Flow Strain if Crisis Persists
Zahid warned that if the crisis continues into the middle of the year, its impact will extend beyond rising costs to more severe cash flow pressures within rural communities.
He said this could necessitate expanded government assistance programmes to support affected groups.
“If the situation persists, we may need to introduce additional measures to help those impacted,” he said.
Mitigation Measures Already in Place
In response to these challenges, the government has implemented mitigation strategies, including maintaining subsidies, stabilising prices, and introducing targeted assistance.
Zahid emphasised that his ministry’s role is to ensure rural communities can withstand the effects of global economic pressures.
“This is not a crisis to be feared, but one that must be managed effectively through the right strategies,” he said.
The ongoing review reflects the government’s effort to balance fiscal responsibility with the need to protect vulnerable communities during a period of heightened global uncertainty.
-wilayah.com.my
