The reform of petrol subsidies should take into account the realities of Sabah, Sarawak

KUCHING, Sept 27: The petrol subsidies reform must take into account the reality of life in Sabah and Sarawak which still depend on private vehicles due to public transportation constraints and travel distance factors.

Economic analyst Dr. Dzul Hadzwan Husaini said that the demand for petrol in both states is different compared to areas with more comprehensive public transportation systems.

"The demand for petrol in Sabah and Sarawak is high as both states still face limitations in terms of infrastructure and efficient public transport services", he said when interviewed by TVS.

According to him, petrol is an essential necessity for people who have to travel long distances to work or manage daily affairs.

He said that this should be taken into account in any government efforts to clarify or re-target petrol subsidies.

He said that setting the same subsidy usage limit for all groups does not necessarily reflect the real needs of people in the field.

For example, he said, low-income people who live far from work may require higher petrol consumption than other individuals in the same income category.

"For those who live far from work, public transportation may not be a practical option. If the bus journey takes a long time, it can make it difficult for them to arrive at work on schedule", he said.

Dzul Hadzwan said that the geographical situation and limited public transportation networks have made private vehicles part of daily needs of people in Sabah and Sarawak.

He also recalled that the reform of subsidies should take into account the differences between states to ensure that the mechanism introduced does not affect those who really need it.

He said that the targeted subsidy approach is important, but its implementation requires accurate data and information about people's real needs.

In the meantime, he said, people can also play a role by using subsidies in a profitable way to help reduce pressure on government finances.

According to him, the management of subsidies should be seen as a joint effort between government and people to ensure that the assistance provided can be sustained in the long run. -TVS