Diesel Subsidy Improvements Could Be Announced Within a Month

The government may announce changes to Malaysia’s targeted diesel subsidy system sooner than initially expected, with the updated mechanism potentially being revealed within the next month.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the government is optimistic that the announcement can be brought forward from the earlier one-to-two-month timeframe. This follows engagement sessions with relevant stakeholders, with feedback and recommendations already submitted to the Finance Ministry.



Input from the Sabah and Sarawak state governments, along with KPDN’s own recommendations, has been taken into consideration as the government works to improve the subsidy system while ensuring it continues to benefit those who need it.

The proposed changes are expected to include a simpler application process, more flexible eligibility requirements for vehicles involved in “sambung bayar” arrangements, and the option to transfer diesel subsidy quotas to immediate family members.

The government is now evaluating the proposed improvements before making an official announcement, which could come within the next few weeks.

 

Aug 24,2026