Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali. Photo Credit : UKK KPDN
KUDAT, 19 October 2026 – The Ministry of Domestic Trade and Cost of Living (KPDN) has submitted a proposal to the Ministry of Finance (MOF) to consider expanding diesel subsidy to operators of the Kudat-Pulau Banggi ferry service.
The proposal follows engagement sessions by KPDN, together with the Banggi State Assemblyman and relevant agencies, with the two ferry operators that have reduced trip frequency. The reduction was attributed to rising operational costs and diesel fuel prices.
Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali said the ferry service is the main mode of transport linking Pulau Banggi residents with Kudat town for economic and social activities, access to basic services, and daily necessities.
“This proposal is made based on the ferry service needs for this sector, which are focused on the connectivity requirements of local residents and not tourism activities,” he said in a statement issued in Pulau Banggi today.
He expressed hope that the subsidy consideration would enable both ferry operators to restore the previous trip frequency. Details of the implementation mechanism will be announced subject to agreement and decision by the MOF.
As of 18 October 2026, a total of 205,167 companies involving 514,111 commercial vehicles have been registered under the Subsidised Diesel Control System (SKDS) nationwide. In Sabah, there are 17,703 company registrations involving 38,659 vehicles.
For the Subsidised Petrol Control System (SKPS), 24,204 companies involving 44,883 vehicles have been registered nationwide, with Sabah recording 995 companies involving 1,408 vehicles.
Besides the diesel subsidy proposal, KPDN continues to strengthen cost-of-living programmes in Pulau Banggi, including the RAHMAH MADANI Sales Programme (PJRM). A total of 35 PJRM series have been held on the island from 1 January to 18 October 2026, compared with 31 series in 2025. The Essential Goods Distribution Programme covers 77 points of sale (POS) across the Karakit, Damaran, and surrounding islands zones.
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