Kuala lumpur: Improvements to the Subsidised Diesel Control System (SKDS) mechanism can help ensure a more targeted delivery of government assistance while safeguarding the country's fiscal position, according to analysts.

According to BERNAMA News Agency, Universiti Pendidikan Sultan Idris (UPSI) lecturer Prof Dr Ramlee Ismail emphasized that the move is a strategic measure to ensure effective distribution of assistance to economic sectors and micro-entrepreneurs that require support. The expansion of the SKDS is anticipated to benefit more operators involved in transportation, services, supply, and delivery activities, particularly micro-entrepreneurs. This measure can help reduce business operating costs, enhance the competitiveness of local enterprises, and ensure the smooth functioning of service and supply chains that support national economic growth.

Ramlee, who is with the Management and Economics Faculty, pointed out that for the logistics sector, including food, agriculture, educational supplies, school equipment, and tourism, access to subsidised diesel would be crucial in maintaining effective public services. As the International, Mobility and Advanced Education Centre director at UPSI, he highlighted that the SKDS expansion is not merely a fuel subsidy initiative but a significant step towards a more efficient, sustainable, and accountable assistance delivery system for the well-being of the people and the prosperity of the national economy. In light of the ongoing crisis in West Asia, Ramlee noted that oil prices will increasingly depend on supply availability and the longevity of existing stocks, emphasizing the need for prudent and needs-based consumption.

Meanwhile, Associate Professor Dr Ahmad Shahrul Nizam Isha of Universiti Teknologi Petronas remarked that the SKDS, which now also covers jeeps and pickup trucks, is an effective government measure to alleviate cost burdens on operators and small traders. He noted that in areas like Cameron Highlands, many vegetable growers and farm operators rely on pickup trucks for commercial purposes. To enhance subsidy management, Ahmad Shahrul Nizam suggested the government require companies to provide detailed fuel usage data to prevent leakages, advocating for continuous monitoring of diesel usage with accurate data provision by companies.

Azizi Ahmad, the Food Security Academy director at Sultan Azlan Shah University, proposed integrating the databases of the Ministry of Domestic Trade and Cost of Living and the Ministry of Agriculture and Food Security. This alignment, along with cooperation from the Road Transport Department, would ensure that jeep and pickup truck operators applying for the subsidy are genuinely involved in the agri-food sector. Among other improvements, Azizi recommended using GPS tracking to monitor food logistics vehicles receiving this subsidy to prevent leakages, and suggested implementing targeted diesel quotas based on geographical distances, while integrating AI technology to monitor fuel transactions. An early warning system could detect suspicious diesel purchasing patterns through users' fleet cards, allowing the government to monitor usage patterns effectively.