FMM proposes crisis adjustment mechanism for subsidised diesel

June 23, 2026

Head Office, KL

FMM In The News: THE EDGE MALAYSIA, June 18, 2026

KUALA LUMPUR (June 18): The Federation of Malaysian Manufacturing (FMM) has proposed the establishment of a crisis adjustment mechanism within the Subsidised Diesel Control System (SKDS).

Its president Jacob Lee Chor Kok said that under such a mechanism, temporary and targeted quota adjustments could be considered when major external disruptions significantly affect transportation and supply chain operations.

“This would provide a structured avenue for businesses and transport operators to seek temporary relief based on demonstrated operational requirements while preserving the overall objectives of subsidy rationalisation,” he said in a statement on Thursday.

Additionally, he said such a mechanism could be implemented through the existing Petroleum Subsidy Approval Committee with an accelerated review process during recognised disruptions.

“This would enable genuine operational requirements arising from extraordinary circumstances to be assessed quickly while maintaining the integrity of the subsidy system,” Lee said.

He said the FMM has formally requested an engagement session with the Ministry of Domestic Trade and Cost of Living (KPDN) to better understand the basis for the revised quota allocations, share industry feedback and discuss practical measures to minimise unintended impact on supply chains and the cost of living.

“The FMM stands ready to work closely with the KPDN and other relevant agencies to develop solutions that strengthen subsidy governance while safeguarding supply chain resilience, economic competitiveness and consumer interests,” he said.

The ministry recently revised the fixed quota limits under the SKDS for the goods transportation sector to strengthen regulatory controls and curb subsidy leakages and misuse of fleet cards.

Effective June 1, 2026, each fleet card is allocated a monthly quota of between 900 litres and 5,000 litres, depending on the limits set for 23 eligible vehicle categories under the SKDS.

Source of article: https://theedgemalaysia.com/node/807341