The Government of Malaysia will extend its Subsidised Diesel Control System (SKDS) to East Malaysia, with registration opening on May 4, 2026, for logistics companies in Sabah, Sarawak and Labuan. The move marks the initial phase of expanding targeted diesel subsidies nationwide, focusing on the land transport sector.
Under the scheme, eligible goods transport operators can purchase subsidised diesel at a controlled rate of MYR2.15 per litre using a fleet card system linked to approved vehicles. Companies must register under SKDS and submit required documentation, including approval letters and verified vehicle lists, before applying for fleet cards through designated oil companies.
The initiative forms part of the government’s broader subsidy rationalisation strategy aimed at improving efficiency and ensuring support reaches priority sectors. Authorities have advised businesses to prepare ahead of the rollout by ensuring valid company registrations and up-to-date vehicle documentation.