Malaysia

Targeted diesel subsidy system improvements expected in ‘1 to 2 months’

Among other things are the issue of vehicles with “sambung bayar” (taking over hire-purchase payments), owners who have more than one vehicle and the transfer of quotas to immediate family members in certain circumstances.

Updated 1 week ago · Published on 17 Aug 2026 8:50AM

Targeted diesel subsidy system improvements expected in ‘1 to 2 months’
The move aims to ensure the implementation of the targeted diesel subsidy is easier, and that government assistance reaches eligible individuals. - August 17, 2026

THE government will announce several improvements to the implementation of the targeted diesel subsidy in the next one to two months, including streamlining the application process and reviewing the eligibility requirements for recipients.

Finance Minister II, Datuk Seri Amir Hamzah Azizan, said that among other things are the issue of vehicles with “sambung bayar” (taking over hire-purchase payments), owners who have more than one vehicle and the transfer of quotas to immediate family members in certain circumstances.

He said the move aims to ensure the implementation of the targeted diesel subsidy is easier, and that government assistance reaches eligible individuals.

“We are still examining several improvement proposals. In the next month or two, we will announce improvements, especially regarding processes and eligibility.

“We want those who are eligible to truly benefit from this diesel subsidy,”  he said at a press conference after attending the 2027 Budget Engagement Session with industry players in Tawau, yesterday.

Amir Hamzah said that about 120,000 owners of four-wheel drive vehicles, including pickups in Sabah, are eligible to apply for the 300-litre diesel subsidy quota after eligibility was expanded to the relevant category.

However, so far only about 49,000 vehicle owners have applied.

“Our focus now is to ensure that those who are eligible really know that they can apply and benefit from this assistance.

“We encourage more of those who are eligible to apply because the Ministry of Finance has provided facilities and mechanisms to enable applications to be made,” he said.

He also explained that the government is also working with the Inland Revenue Board (IRB), the Urban Transformation Centre (UTC) and oil companies to help those who are less skilled in using technology or who have difficulty applying online.

“Applicants can get assistance at LHDN and UTC branches while oil companies also assist at petrol stations.

“We hope that out of the approximately 120,000 eligible vehicle owners in Sabah, all of them will be able to apply so that they can enjoy the assistance and quota that has been provided,” he said. – August 17, 2026

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