Sabah: The federal government has been urged to give special consideration to Sabah's tourism industry in the implementation of targeted diesel subsidies, including incorporating the sector into the subsidy mechanism or a more suitable form of support.
According to BERNAMA News Agency, Sabah Minister of Tourism, Culture and Environment Datuk Jafry Ariffin emphasized the importance of this consideration due to Sabah's unique geography and operational realities, particularly in island and interior areas that still depend on diesel. He pointed out that diesel is not only used for electricity generation but also serves as a key energy source for transportation, logistics, and various economic activities, including tourism operations.
Jafry noted that the current 200-litre monthly subsidised diesel quota is insufficient to meet the operational needs of tourism operators in Sabah's islands and interior areas. His ministry has received numerous complaints from industry players who rely entirely on the fuel. "Most tourism islands in Sabah are not connected to the electricity grid, and diesel is not a choice but a basic necessity to sustain operations for electricity supply, sea transport, logistics, and overall daily activities," he stated in a recent announcement.
He further elaborated that a significant number of tourism operators in Sabah do not fall under the eligibility category of the Subsidised Diesel Control System, compelling them to bear higher operating costs without any form of assistance. Jafry highlighted that the tourism industry is one of the main contributors to Sabah's economy and provides employment opportunities for thousands, making it essential for any diesel subsidy policy to consider the operational realities of the industry in Sabah.
Expressing his confidence in the federal government's constructive consideration of this appeal, Jafry stressed the importance of achieving subsidy rationalisation without affecting the sustainability of Sabah's tourism industry. He also expressed concern over the potential increase in operating costs during the peak tourism season, which could impact profit margins and cash flow for operators.
To address these issues, an official letter seeking special consideration for Sabah's tourism industry has been sent to Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, and Deputy Economy Minister Datuk Indera Mohd Shahar Abdullah.