Anwar: It's the federal government that bears diesel subsidies for Sabah, Sarawak

 By Olivia Miwil

March 15, 2026 @ 2:00pm

Prime Minister Datuk Seri Anwar Ibrahim giving a speech at the National Consumers’ Day celebration at a mall in Kota Kinabalu today. -- BERNAMA PIC

KOTA KINABALU: It is the federal government that is bearing the fuel subsidies for Sabah and Sarawak, although it is not within the Malaysian Agreement 1963 (MA63).

Prime Minister Datuk Seri Anwar Ibrahim said that with the ongoing war, the federal government is bearing higher cost of diesel subsidies for Sabah and Sarawak this year.

"Diesel is indeed a major issue for us. We have to absorb the cost. If the price goes up, it will be difficult.

"People travelling from here to Kundasang will complain. People in Tawau will complain too, because diesel usage is high there. The Malaysian government takes this into account.

"That is why when we raised diesel prices in Peninsular Malaysia two years ago, we did not increase diesel prices in Sabah and Sarawak, because diesel usage is higher here.

"However, diesel prices globally have increased — not just increased, but surged. So who should pay for it? The government has to pay.

"Sometimes people give the impression that nothing is being done, that the prime minister does not care about the people of Sabah. That is not true.

"No one asked for this. No one threatened us. But it is our responsibility to ease the burden of the people," he said during the National Consumers' Day celebration at a mall here.

Anwar, who is also finance minister, said that in 2025, the diesel subsidy for Sabah and Sarawak amounted to RM2 billion and this year it is RM4.6 billion.

On MA63, Anwar said the matters are still being negotiated and four meetings had been held to discuss about it.

Earlier, he said fasting during Ramadan had a deeper purpose beyond abstaining from food.

"Fasting is meant to make us aware of the struggles of the poor," he said.

Present were Sabah Chief Minister Datuk Seri Hajiji Noor and and Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.




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