Kuching: A review of the vehicle classification requirements under the Sistem Kawalan Diesel Bersubsidi (SKDS) has been urged by LPKP Sarawak Chairman Michael Kong Feng Nian, following complaints from companies affected by the current implementation of the diesel subsidy programme.
Kong said he had recently received feedback from several businesses regarding the classification of company-owned pickup trucks and jeeps under SKDS.
According to information published by the Ministry of Domestic Trade and Cost of Living (KPDN), company-owned pickup trucks and jeeps registered under the category Kegunaan Persendirian Syarikat (AE) are eligible to apply for the diesel subsidy.
However, many companies have informed him that although their vehicles are registered under Kegunaan Persendirian Syarikat (AE), they do not qualify because the vehicle classification in the system is recorded as Persendirian (PSDN).
“As a result, they are required to first change the vehicle category to Barangan (BRG) before they can qualify for the subsidy,” Kong said in a statement today.
Kong said the requirement creates an unnecessary administrative burden for businesses.
“Once the vehicle category is changed to Barangan (BRG), the vehicle becomes subject to mandatory PUSPAKOM inspections every six months, resulting in additional compliance costs, downtime and administrative work for companies that rely on these vehicles for daily operations,” he said.
He stressed that the objective of the diesel subsidy is to reduce operating costs for businesses and should not inadvertently create additional regulatory hurdles that offset part of its intended benefit.
Kong said the matter would be taken up with the relevant authorities and industry stakeholders to better understand the rationale behind the current implementation and to explore whether improvements could be made.
“Government policies should achieve their intended objectives without imposing unnecessary compliance costs on businesses. Where practical improvements can be made, they should be considered so that businesses can focus on growing the economy rather than navigating avoidable administrative hurdles,” he said.
He also expressed hope that the relevant authorities would engage with industry players to find a practical solution that balances regulatory requirements with the operational realities businesses face.
