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Published: 11 June 2024

Diesel Subsidies – Commentary by Association of Malaysian Hauliers

Representing over 200 member companies, Association of Malaysian Hauliers (AMH) recently commented on the Malaysian government abolishing subsidies for Diesel. AMH stated that those members who are still receiving diesel subsidies from the government feel grateful and relieved that this assistance continues. According to AMH, this subsidy is crucial in ensuring that operating costs do not increase drastically, which would negatively impact the transportation industry. “We appreciate the government's efforts in providing this subsidy, as it helps maintain the stability of our operations. However, the sudden announcement has caused some concern because many members have not yet received their 'fleet cards',” an AMH spokesperson commented.

The diesel subsidy provided by the government not only eases the financial burden on AMH members but also significantly benefits the Malaysian public. With this subsidy, transportation costs can be controlled and do not need to be increased. This means that the prices of goods and services provided can be maintained at reasonable levels, which in turn helps reduce the cost-of-living pressures on the public.

“We at the Association of Malaysian Hauliers (AMH) would like to provide some advice regarding the recent announcement on the implementation of the diesel subsidy (SKDS 2.0) by the government. We understand that there is still confusion and uncertainty among members about the implementation and mechanism of SKDS 2.0.” AMH has asked members to not panic or make rushed decisions pertaining to this measure.

“First and foremost, AMH would like to advise all members not to panic regarding this announcement. We at AMH are working hard to obtain clearer and more detailed information from the relevant authorities. All the latest developments will be communicated to members as soon as possible.”

AMH would also want to emphasize the importance of not spreading inaccurate or unauthenticated information about SKDS 2.0. The spread of false information or speculation can cause confusion and chaos among members and the general public. Therefore, AMH urges all members to obtain official and up-to-date information through AMH's official communication channels or directly from the relevant authorities.

Further, the association also urges all members to use social media wisely. AMH implores members to avoid spreading information that has not been verified or is speculative. Instead, members are to use social media platforms to share accurate information and help clarify any confusion among industry peers.

We at AMH are always committed to supporting our members and ensuring your well-being. We are continuously in the process of obtaining further clarification regarding the implementation of SKDS 2.0 and will strive to ensure that any changes will not negatively affect the operations of our members.

AMH urges “Once again, we ask all members to remain calm and not to panic. Together, we will face these changes with wisdom and patience. Thank you for your cooperation and support.”

Chronology of action taken by AMH since the announcing the proposal of targeted diesel subsidies:

 

  1. Prime Minister (PM) announce the targeted diesel subsidies to start in 2024 - 13 October 2023
  2. NLTF Meeting, AMH president raised about the diesel subsidy - 21 November 2023
    3. MOF called for meeting engagement with industry - 27 November 2023
    4. AMH Secretariat requests members to submit diesel consumption - 22 December 2023
    5. AMH reminds members to submit diesel consumption - 4 January 2024
    6. KPDN announced SKDS 2.0 1st phase for six companies’ trial run - 10 January 2024
    7. AMH reminds members to submit diesel consumption - 23 January 2024
    8. KPDN called for meeting engagement with industry - 8 February 2024
    9. KPDN announced SKDS 2.0 2nd phase to open for all companies - 7 March 2024
    10. AMH reminds members to submit diesel consumption - 7 March 2024
    11. AMH submitted the NLTF issues to MOT - 8 March 2024
    12. MOT requested AMH data on Diesel, and association submitted it - 27 March 2024
    13. AMH submitted the list of the impact of the diesel price increase to MITI - 8 April 2024
    14. MOT requested the same data according to their template - 8 April 2024
    15. AMH shared the Google form to members - 9 April 2024
    16. AMH submitted the data to MOT - 15 April 2024
    17. MOF called AMH for online meeting - 19 April 2024
    18. AMH reminds members to register SKDS 2.0 and apply fleet card - 21 April 2024
    19. KPDN called AMH for a meeting - 23 April 2024
    20. KPDN Press Conference - 23 April 2024
    21. AMH reminds members to stand by for June Implementation - 5 May 2024
    22. NLTF Meeting, KPDN presented the SKDS 2.0 - 17 May 2024
    23. PM announces rationalisation of fuel subsidies - 21 May 2024
    24. KPDN Open Day for SKDS 2.0 - 30 May 2024
    25. MOF Minister announces new diesel price without subsidy - 9 June 2024