Enforcement Key To Prevent Fuel Subsidy Leakages, Says Sarawak Minister

KUCHING, April 7 (Bernama) -- Effective enforcement by relevant agencies is essential to prevent misuse of government fuel subsidies and curb supply leakages, said Sarawak Minister of Tourism, Creative Industry and Performing Arts Datuk Seri Abdul Karim Rahman Hamzah.

He said the establishment of the integrated Ops Tiris 4.0 special task force for Sabah, Sarawak and Labuan, as announced by the Federal government, would strengthen the implementation of price controls and subsidies.

He said fuel price increases could have a chain effect on energy costs and lead to higher prices of other goods.

“When fuel prices rise, it affects energy costs and leads to increases in other goods. This is where the government must carry out proper monitoring through enforcement units.

“It is good that the Federal government has introduced such guidelines, but enforcement is more important. You can have initiatives such as subsidies, but without monitoring, they will not be implemented effectively,” he told reporters after attending an event here today.

He said the move to strengthen enforcement to curb fuel leakages in Sabah, Sarawak and Labuan is important to ensure subsidies truly benefit the people.

He added that price differences between Malaysia and other countries could encourage fuel smuggling if border controls are weak.

“If fuel is cheaper here, there will be a tendency to smuggle it elsewhere. Without proper monitoring, supply could decline and undermine the purpose of subsidies,” he said.

Yesterday, Deputy Prime Minister Datuk Seri Fadillah Yusof said the government had agreed to set up the special task force to enhance regulation of ship-to-ship fuel transfers, or bunkering.

He said the task force would be co-chaired by the Federal Secretary and State Secretary, with the Ministry of Domestic Trade and Cost of Living (KPDN) at the state level acting as the secretariat.

-- BERNAMA