Kuala lumpur: The Federation of Malaysian Consumers Associations (FOMCA) has called on the government to strengthen monitoring of essential goods prices and enforcement following the expansion of the Subsidised Diesel Control System (SKDS).

According to BERNAMA News Agency, FOMCA stated that although the expansion of diesel subsidies for jeeps and pick-up trucks nationwide could help reduce transportation costs, there is no automatic guarantee that the savings would translate into lower retail prices. "Fuel and logistics costs are important components within the supply chain. However, effective monitoring and enforcement are necessary to ensure that cost savings are reflected in retail prices instead of being absorbed as additional profits by certain parties," it said.

FOMCA also welcomed the government's decision to expand the SKDS eligibility for jeeps and pick-up trucks nationwide, particularly for operators involved in land freight transportation. The association noted that the move was timely as transportation and logistics costs continued to contribute to higher prices of food, agricultural produce, and daily essentials faced by consumers.

According to the Domestic Trade and Cost of Living Ministry, the improved SKDS mechanism will allow companies nationwide that own jeeps and pick-up trucks for land freight purposes to register under the system beginning June 1. The government has also expanded eligibility to include certain vehicles previously registered under individual ownership, subject to company registration and transfer of vehicle ownership requirements.

FOMCA expressed appreciation for the government's continued efforts to address the rising cost of living amid global economic uncertainty and geopolitical tensions, which have contributed to higher global fuel and commodity prices.