KPDN hopes that subsidy allocations, including SKDS, will continue to receive due attention in Budget 2027

Despite the fiscal challenges posed by the rising cost of fuel subsidies, the ministry of domestic trade and cost of living (KPDN) hopes that the allocation of subsidies for fuel and controlled goods will continue to receive due attention in the upcoming Budget 2027.

It hopes that subsidy allocations for the subsidised diesel control system (SKDS) as well as that for cooking oil and the price standardisation programme for Sabah and Sarawak, will be maintained, as the New Straits Times reports.

According to KPDN minister Datuk Armizan Mohd Ali, the allocations were important to enable the ministry to carry out its responsibilities effectively, particularly in ensuring that the supply and prices of goods remained stable.

“Most importantly for us now, amid such major challenges, is to ensure that consumer subsidies can be maintained. For example, this year alone, under Budget 2026, RM15 billion was allocated for fuel subsidies, but now the fiscal space that needs to be used for fuel subsidies has almost reached RM40 billion. That is an increase of almost threefold. So, that is one of the challenges,” he said.

Armizan said the government’s targeted subsidy reforms had enabled subsidies to continue reaching eligible groups despite rising costs, with mechanisms such as SKDS and Budi Diesel enabling fuel subsidies to continue reaching eligible groups, while the subsidised packet cooking oil programme has been maintained despite higher crude palm oil prices.

He said that the ministry had submitted its applications and several key areas for consideration by the finance ministry for Budget 2027, taking into account current needs and the country’s fiscal capacity.

Add paultan.org as a preferred source on Google SearchAdd Follow paultan.org on Google NewsFollow