THE Sabah government said it does not agree with the implementation of the targeted diesel subsidy by limiting the 200-litre quota set by the Federal government, following various issues faced by the people in the state.

Finance Minister, Datuk Seri Masidi Manjun, called for the establishment of a special committee (task force) to examine the implementation of the scheme before officially submitting improvement proposals to the Federal government.

He said this when answering a supplementary question from Tham Yun Fook (Warisan-Likas), who wanted to know the Sabah government’s official stance on the 200-litre quota diesel subsidy policy currently being implemented.

Masidi said that the state government is of the view that the existing diesel subsidy system still needs many improvements to ensure that it truly meets the needs of the people of Sabah.

“That’s why we formed this task force or committee, because we disagree. I think there is a lot of need for improvement in this subsidy system.

“Actually, we proactively called the Treasury Secretary-General last Sunday to start discussions on how we can overcome this problem,” he said during the winding-up session of the Sabah State Legislative Assembly (DUN) on Tuesday.

According to him, the state government has informed the Treasury Secretary-General that all improvement proposals will be detailed by the special committee before being officially submitted to the Federal Government.

“When this committee refines and prepares all our counter-proposals and improvements, we will officially submit them to the Federal Government.

“So, in short, we formed this special committee because we are not satisfied with the current scheme. That is our stance,” he said. – July 21, 2026