Geography realities justify keeping diesel subsidy in Sarawak, says Minister

Dato Sri Lee Kim Shin

By DayakDaily Team

KUCHING, April 3: Sarawak’s vast terrain and scattered rural communities make the retention of diesel subsidies a necessity, not a choice, says Minister of Transport Sarawak Dato Sri Lee Kim Shin.

Lee, who is also Senadin assemblyman, said the federal government’s decision to maintain diesel subsidies in Sabah and Sarawak is critical to cushioning the cost of living and sustaining rural economies across East Malaysia.

He stressed that Sarawak’s unique geography—marked by its large landmass, remote settlements and limited connectivity—has resulted in a heavy reliance on diesel as a primary source of mobility and economic activity.

“Diesel subsidy is not merely an economic policy, but a basic necessity that supports daily life, including access to services, transportation and income generation,” he was quoted by Sarawak Public Communication Unit (UKAS) as saying after officiating Curtin University’s ‘The Greater Escape 2036’ programme in Miri today.

Lee pointed out that high logistics and transportation costs due to geographical challenges have a direct impact on prices of goods, making subsidies crucial in stabilising prices and easing financial pressure on the people.

He added that key sectors such as agriculture, fisheries and plantations—many of which depend heavily on diesel—require continued support to avoid disruptions to local economic chains.

At the same time, Lee cautioned that implementing targeted subsidies in rural and interior areas would pose significant challenges in terms of delivery and effectiveness.

As such, he said the current blanket approach remains more practical and inclusive in ensuring assistance reaches those who need it most. — DayakDaily