PUTRAJAYA: The government has introduced a diesel subsidy for passenger ferry and Roll-On Roll-Off (RORO) ferry operators serving Malaysia's key islands, starting Jan 1.
Transport Minister Anthony Loke said that ferry operators could claim the subsidy by Feb 20.
The subsidised diesel will be priced at RM2.50 per litre, with a maximum subsidy rate of 50 sen per litre.
This subsidy will apply to strategic routes, including those serving Labuan, Pulai Langkawi, Pulai Pangkor, Pulau Ketam, Pulau Tioman, Pulau Redang, and Penang
"Operators must meet several conditions to qualify for the subsidy, including registering with the Malaysian Maritime Department and procuring diesel from licensed suppliers," said Loke.
"Diesel subsidy claims must be submitted monthly and verified by the nearest Customs Station no later than the 20th of the following month," he said.
Loke also said that while the subsidy is meant to alleviate operational costs, it remains the operators' responsibility to offer an "efficient and competitive service" to passengers.
In September, Prime Minister Datuk Seri Anwar Ibrahim said the government needs to take practical measures, including targeting diesel subsidies, despite receiving criticisms.
He said the targeting of diesel subsidies has successfully increased investor confidence, stock market stability and strengthened the implementation of the country's Fiscal Responsibility Act.