THE Ministry of Domestic Trade and Cost of Living (KPDN) has pledged immediate investigation and firm enforcement should any complaints arise regarding misuse or manipulation of the BUDI MADANI RON95 petrol subsidy scheme (BUDI95) at fuel stations.
Minister Datuk Armizan Mohd Ali confirmed that, as of now, no formal reports have been received on any attempt to circumvent or exploit the targeted subsidy mechanism for petrol.
“We currently have a real-time monitoring system in place together with the Ministry of Finance to oversee subsidy usage,” he said. “KPDN will not hesitate to take action if there is evidence of such activity.”
Speaking at a press conference following the signing of a memorandum of understanding for the development of community cinemas, Armizan reaffirmed that the government’s main priority in subsidy reform was to eliminate leakages — not to reduce aid for the public.
“Our focus with this subsidy targeting — whether for diesel or petrol — is not to cut support to the people but to prevent leakages,” he stressed. “If anyone is found exploiting subsidies meant for the rakyat, we will take firm action.”
Armizan also reiterated the unity government’s stance, led by Prime Minister Datuk Seri Anwar Ibrahim, in clamping down on any abuse of subsidised goods, declaring that firm enforcement remains central to ensuring assistance reaches those it is intended for.
Federal Government Underscores Commitment to Resolving Sabah’s Water and Electricity Woes
Meanwhile, the Federal Government has reaffirmed its commitment to addressing long-standing water and electricity supply issues in Sabah, with a significant portion of the RM6.9 billion development allocation under Budget 2026 dedicated to improving basic infrastructure across the state.
Armizan said that despite water and electricity regulation now falling under state jurisdiction — the latter officially since 2024 — Putrajaya remains actively involved in resolving legacy infrastructure challenges inherited over decades.
“These are not new problems, and the solutions require major investment. The Federal Government remains fully committed to working with the Sabah State Government to ensure the wellbeing of the people and the development of the state,” he said in a statement today.
Among the key electricity-related commitments announced under Budget 2026 are:
RM1.2 billion in subsidies to stabilise electricity supply in Sabah, comprising RM880 million for tariff support, fuel subsidies, and large-scale solar subsidies — an increase from RM700 million in 2025.
RM189.8 million under the Rural Electricity Supply Programme (BELB) via the Ministry of Rural and Regional Development.
RM128 million for electricity connection projects led by the Special Project Team for Electricity Supply in Sabah (PPKBES) under the Ministry of Energy Transition and Water Transformation (PETRA).
A further RM765 million has been allocated for the Southern Link Grid project — a long-awaited 330km, 275kV electricity transmission network to connect the eastern and western grids of Sabah.
“Phase I of the Southern Link is already under construction. The new allocation will enable Phase II to proceed, connecting key areas including Sipitang, Tenom, Kalabakan and Tawau,” Armizan said, noting that the plan has been in the pipeline since the 1980s.
Though energy regulatory powers have now shifted to the Sabah Energy Commission (ECoS), Armizan emphasised the Federal Government’s ongoing support, including through Tenaga Nasional Berhad (TNB), which still holds majority ownership in Sabah Electricity Sdn Bhd (SE), the state’s main utility provider.
On water supply, he confirmed that RM1 billion has been allocated over a three-year period (2024–2026) to address critical water infrastructure needs. This includes new pipe installations in Tawau and upgrades to ageing pipes in Kota Kinabalu, Penampang and Putatan, with projects already underway and expected to be completed by next year.
“These are not just budget figures — they are real investments in the daily lives of Sabahans,” he added. - October 11, 2025
