Malaysia eyes diesel subsidy expansion for Kudat-Banggi Island ferry route

The proposal comes as the ferry operator has raised concerns over mounting expenses linked to fuel price increases, straining the viability of the vital maritime link serving the remote island community off Sabah's coast.

The Kudat-Pulau Banggi ferry service plays a crucial role in connecting residents and facilitating commerce between the mainland and the island. Operators have stressed that without financial relief, maintaining regular service schedules and affordable fares would become increasingly difficult.

The Ministry of Domestic Trade and Cost of Living, through its pricing and subsidy division, has recommended broadening the government's diesel subsidy programme to include this route. The move would align with similar support extended to other essential transportation services across Malaysia.

The proposal is expected to undergo review by relevant government agencies before implementation. Officials have indicated that addressing operational challenges for regional ferry services remains a priority, particularly for routes serving less accessible areas.

A final decision on the subsidy expansion is anticipated following consultation with transport authorities and economic planning departments.