How will SKDS 2.0 and Budi Madani shield Sabah/Sarawak from price hikes?

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SKDS 2.0 and Budi Madani Initiatives to Mitigate Price Hikes in Sabah, Sarawak, and Labuan

The targeted diesel subsidy measure implemented in Peninsular Malaysia, effective June 10, is not anticipated to trigger an increase in the prices of essential goods in Sabah, Sarawak, and Labuan. This is primarily due to the government's provision of support mechanisms, namely the Subsidised Diesel Control System 2.0 (SKDS 2.0) and the Budi Madani initiative, designed to offset potential rises in transportation costs for traders and individuals. These programmes ensure that the benefits of the subsidised diesel continue to reach the supply chains serving these East Malaysian regions.
Subsidised Diesel Control System 2.0 (SKDS 2.0) Benefits

The SKDS 2.0 initiative offers fleet card assistance to 23 categories of vehicles, critically including those involved in the transportation of food, essential, and daily items. Through this system, eligible vehicles can purchase diesel at a subsidised rate of RM2.15 per litre. This provision is intended to maintain the cost-effectiveness of transporting goods, thereby preventing an upward adjustment in prices for consumers in Sabah, Sarawak, and Labuan, even with the broader national subsidy rationalisation.
Budi Madani Initiative for Individual Support

Complementing SKDS 2.0, the Budi Madani initiative provides direct financial assistance to eligible individuals. These recipients receive RM200 monthly to help manage their transportation expenses. This measure aims to cushion the impact of any potential indirect cost increases on individuals who might be involved in smaller-scale transport or whose livelihoods are tied to transportation costs, further reinforcing the shield against price inflation in the affected regions.
Ensuring Continued Subsidy Access

The government's objective is to ensure that all vehicles operating within the supply chain, including those responsible for delivering goods to Sabah, Sarawak, and Labuan, continue to benefit from diesel subsidies. This comprehensive approach aims to prevent any disruption or increased costs in the movement of essential items. Parties claiming to be adversely affected by transportation costs due to the subsidy adjustments are encouraged to seek information and apply for assistance under SKDS 2.0 and Budi Madani.
Enforcement and Reporting Mechanisms

The Ministry of Domestic Trade and Cost of Living (KPDN) is responsible for managing the SKDS 2.0 programme. The authorities have urged the public to report any noticeable price spikes that are not justified by the subsidy changes. This mechanism allows for prompt enforcement action against any parties attempting to exploit the situation by raising prices excessively, particularly in regions like Sabah, Sarawak, and Labuan, which are not directly impacted by the Peninsular Malaysia diesel subsidy rationalisation.

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How will SKDS 2.0 and Budi Madani shield Sabah/Sarawak from price hikes?

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