THE Government is intensifying efforts to clamp down on fuel subsidy leakages while simultaneously accelerating a nationwide campaign to strengthen domestic industries, with Sabah emerging as a key testing ground for both economic initiatives.
The Ministry of Domestic Trade and Cost of Living announced a dual-pronged strategy involving stricter enforcement against abuse of subsidised fuel schemes and a renewed push to expand the market presence of Malaysian-made products through the Kita Beli Barangan Malaysia (KBBM) initiative.
The measures were unveiled during the launch of the 2026 Inspirasi Beli Barangan Malaysia programme at the Sabah International Convention Centre, officiated by Sabah Chief Minister Datuk Seri Hajiji Noor today.
The event marked the first of five nationwide KBBM series planned for 2026 and is designed to increase consumer demand for local products while giving wider commercial exposure to Malaysian entrepreneurs, including micro, small and medium enterprises as well as established premium brands.
Businesses from sectors including food and beverages, beauty, fashion, lifestyle products, handicrafts and services participated in the programme, alongside government agencies, strategic industry partners and the MADANI Rahmah Sales Programme.
A parallel entrepreneurship forum organised with the Sabah Women’s Inspiration Association attracted approximately 500 participants, underlining the government’s emphasis on grassroots enterprise development and women-led business participation.
In a significant policy expansion, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali confirmed that the Subsidised Diesel Control System (SKDS) for the goods transportation sector will now be extended to Sabah, Sarawak and the Federal Territory of Labuan.
The first phase of registration for logistics and transportation firms in the three territories commenced on 4 May 2026 through the MySubsidi portal.
Currently, 23 categories of land freight vehicles are eligible to receive subsidised diesel under the SKDS mechanism at a controlled rate of RM2.15 per litre.
Armizan said: “The expansion comes amid growing government concern over subsidy leakages linked to abuse of fleet card facilities under both the Subsidised Diesel Control Scheme (SKDS) and the Subsidised Petrol Control Scheme (SKPS).”
He added it is preparing new regulations under the Control of Supplies Act 1961 to establish a stronger and more comprehensive legal framework governing the use, regulation and enforcement of fleet card systems.
The proposed rules are expected to define the obligations of fleet card holders and oil companies while introducing clearer offences and penalties related to subsidy manipulation and fraud.
According to the ministry, the regulatory tightening follows the discovery of multiple “modus operandi involving leakages and misappropriation of diesel and petrol through the misuse of fleet cards”.
Authorities revealed that 223 fleet cards linked to the SKDS and SKPS programmes had been blocked between 2023 and 14 May 2026 as part of ongoing enforcement operations.
“KPDN will continue to strengthen monitoring and enforcement operations on the ground, and any party found abusing fleet cards for the misappropriation of diesel and petrol subsidies will face stern action,” Armizan said. - May 16, 2026
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