Government Extends RON95 Subsidy to Public Passenger Boats in Sabah and Sarawak

KUALA LUMPUR, MALAYSIA Oct 2, 2025 – The government has expressed deep concern for residents in island and riverine areas of Sabah, Sarawak, and parts of Peninsular Malaysia who rely on boats as their primary mode of transportation, announcing the extension of RON95 petrol subsidies to public passenger boats.

This announcement follows discussions between the Ministry of Domestic Trade and Cost of Living (KPDN) and the Ministry of Finance (MOF), which agreed that such boats are eligible for subsidies under the BUDI95 scheme or the Subsidised Petrol Control System (SKPS), subject to implementation mechanisms to be announced soon.

According to official sources, the subsidy primarily targets boats registered under Malaysian citizens or registered companies. The government is currently collaborating closely with relevant state agencies, such as the Sarawak Rivers Board and the Sabah Ports and Harbours Department, to identify registered boat owners, ensuring smooth and fair implementation.

Datuk Armizan Mohd Ali, Minister of Domestic Trade and Cost of Living, stated that the government has agreed to three key measures at this stage:

1. Direct Subsidy Benefits: Public passenger boat operators will receive full RON95 petrol subsidy benefits, aimed at easing operational cost burdens in remote areas.
2. Interim Cash Refund Claims: As a temporary measure, operators are allowed to submit cash refund claims, provided they retain and submit official purchase receipts as proof.
3. Activation of Appeals Committee: KPDN has activated the Subsidised Diesel Control System (SKDS) Appeals Committee with an expanded scope to cover SKPS, to address emerging issues like this—similar to the diesel subsidy rationalization experience previously.

This initiative is expected to positively impact thousands of residents and boat operators in the east coast regions, who often face high fuel cost challenges due to limited access. KPDN promises further updates on claim mechanisms in the near future, while emphasizing the government’s commitment to supporting rural communities.