Small traders and registered businesses now eligible for SKDS fleet cards with 300-litre diesel quota
MENUMBOK: Small traders and registered businesses operating as sole proprietorships can now benefit from the Subsidised Diesel Control Scheme (SKDS) following the government’s decision to expand eligibility for fleet cards under the programme.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the expansion allows eligible small businesses to receive a monthly quota of 300 litres of subsidised diesel through the fleet card facility.
He said the decision was made after the government identified a group of small traders who were affected by the implementation of targeted diesel subsidies because they did not meet the original requirements of the scheme.
When SKDS was introduced on July 1, applications for fleet cards were initially limited to vehicles registered under individual ownership as well as commercial vehicles and goods transportation companies classified under consumer goods transport usage.
However, Armizan said the government found that some small contractors and traders, particularly in Sabah, relied on diesel-powered vehicles for their daily business operations despite those vehicles being registered under company names rather than individuals.
“This situation caused them to be excluded from the original SKDS category even though the diesel was used for business purposes,” he said.
Armizan was speaking to reporters after officiating the Kampung Angkat MADANI Project launch at Kampung Sekalong.
He explained that based on data from the MySikap system managed by the Road Transport Department (JPJ), the Ministry of Domestic Trade and Cost of Living (KPDN) raised the matter for consideration by the Cabinet.
Following the review, the Cabinet approved the expansion of the scheme with immediate effect, allowing small businesses registered as sole proprietorships to apply for the subsidised diesel quota even if their vehicles are registered under company ownership.
Armizan said the move demonstrated the government’s willingness to continuously improve subsidy mechanisms by using accurate data to ensure assistance reaches groups that genuinely require support.
He added that the adjustment reflects the government’s commitment to preventing targeted diesel subsidy measures from creating additional pressure on small traders who depend on diesel vehicles for their business activities.
According to him, the expansion provides a fairer approach by recognising the operational realities faced by small businesses, especially those involved in transportation, contracting and other sectors requiring diesel-powered vehicles.
“The government is always prepared to refine implementation methods as long as reliable data is available to ensure subsidies are directed to the appropriate recipients,” he said.
Armizan said KPDN would continue monitoring the implementation of SKDS and evaluate further improvements where necessary to ensure the targeted subsidy system remains effective, transparent and fair.
The ministry will also continue working with relevant agencies to assess the impact of the scheme and ensure eligible businesses receive the support intended under the government’s diesel subsidy reform measures.
