PETALING JAYA: The Malaysian Automotive Association (MAA) welcomes the government’s decision to expand the nationwide targeted diesel subsidy scheme to eligible Malaysian citizens.
MAA said the move will allow consumers to purchase subsidised diesel at RM2.10 per litre using their MyKad, while non-subsidised users continue to pay the prevailing market price.
Further, MAA commends the government’s decision to provide an additional 100 litres of subsidised diesel on top of the existing 200 litres allocation for eligible owners of pick-up trucks and sports utility vehicles (SUVs).
This measure, the association said, demonstrates the government’s commitment to addressing the concerns of affected vehicle owners and supporting Malaysians’ mobility needs.
MAA president Mohd Shamsor Mohd Zain said the association appreciates the government’s commitment to supporting Malaysian motorists through the expanded targeted diesel subsidy scheme.
“As the programme continues to evolve, we hope consideration can also be given to extend the additional 100 litres of subsidised diesel to include multipurpose vehicles, which are commonly used by larger families for their daily transportation needs.
“As diesel-powered MPVs account for only about 1% of the total industry volume, extending the subsidy to this segment would have only a minimal fiscal impact while providing meaningful assistance to families who depend on these vehicles,“ he said.
MAA believes that the enhanced subsidy mechanism will help restore consumer confidence, particularly among prospective buyers who had postponed their vehicle purchases following the diesel subsidy rationalisation.
The move is expected to encourage consumers to revisit their purchasing plans, especially in the pickup truck segment, which has increasingly become a popular lifestyle vehicle, as well as in diesel-powered SUVs.
Since the diesel price was floated on June 10, 2024, resulting in retail prices increasing from RM2.15 per litre to RM4.07 per litre based on market rates, MAA has observed a significant decline in demand for diesel-powered vehicles.
Sales of diesel vehicles, particularly within the pick-up truck and SUV segments in Peninsular Malaysia, have fallen by almost 25%.
MAA said it remains supportive of the government’s efforts to implement targeted subsidy measures while ensuring that assistance reaches those who genuinely require it.
The association added that it looks forward to continued engagement with the relevant Ministries to ensure that policy measures support both consumers and the broader automotive industry.
