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Gee: Cutting fuel subsidies cripples East Malaysian economic activities

KOTA KINABALU, Monday, 11 May 2026:

Gee Tien Siong, a vice president of SAPP, rejects the implementation of any further fuel subsidy removal in East Malaysia, including the upcoming T20 targeted subsidy rationalisation under the BUDI95 programme, as Sabah and Sarawak serve as the nation’s primary oil producers.

Since Sabah lacks railways or alternative transport options, RM1.99/l subsidised RON95 fuel remains one of the major lifelines for family mobility and essential grocery runs across vast distances, as does the currently uncapped RM2.15/l subsidised diesel.

The existing monthly 200-litre cap already fails families because just three round trips between KK and Tawau, at 450 kilometres each way, exhaust the full quota before the fourth week.

On the over-300-kilometre route between KK-Sandakan or Sandakan-Tawau, the entire subsidised allowance is similarly depleted within only three round trips.

High fuel consumption in Sabah results directly from the immense distances residents are forced to cover for daily needs instead of a preference for vehicles with larger engines.

Most families are reluctant to make further trips once this monthly quota is exhausted because they are unwilling to fork out significantly more money for unsubsidised fuel at double the price.

This financial barrier leaves essential economic activities and local commerce effectively stranded for about 25 per cent of every month as residents are forced to limit their movements, suppressing economic participation.

Any fuel subsidy cut, whether implemented through quota reductions or income-based targeting, will trigger a direct drop in economic activity as is already evident in Sabah today.

Putrajaya must immediately scrap the 200-litre limit, abandon the T20 cut plan, and guarantee that RM1.99 RON95 remains permanent and unrestricted for all residents in Sabah and Sarawak.

While acknowledging the federation is now facing fiscal squeeze, the long-overdued 40% remain unpaid even during windfalls.

Gee Tien Siong
Vice President, Sabah Progressive Party (SAPP)