Dr. Wu Biaosheng Urges Review of Logistics Industry Diesel Subsidy – Ten-Wheeler Lorry Quota Increased to 4,500 Liters

Published at Aug 07, 2026 11:25 am
(Sibu, 7th) Dr. Wu Biaosheng, President of the Federation of Chinese Associations of Sibu and President of Sibu Chinese Chamber of Commerce and Industry, pointed out that he has recently received numerous complaints from logistics operators regarding the current diesel subsidy quota being severely insufficient — especially ten-wheeler lorries, which are only allocated 1,800 liters of subsidized diesel per month, far from meeting actual operational needs, and have already imposed heavy pressure on the transport sector.
He noted that, as transportation distances grow longer, cargo volumes increase, and operational demand continues to rise, the current quota is often exhausted in a short period of time. Once the subsidized diesel runs out, operators are forced to purchase fuel at market prices, leading to surging operational costs.
Wu further pointed out that what's even more worrying is that many small and medium-sized logistics operators, after depleting their quotas, cannot afford the skyrocketing diesel costs and are forced to reduce the number of trips, or even suspend some services, waiting for the next quota to resume operations. This phenomenon not only severely drags down the efficiency of logistics but could also disrupt the stability of supply chains, creating a chain of negative effects for businesses, consumers, and the overall economy.

He added that the situation for operators is worsening, as in recent years freight charges have not risen in tandem. While unable to pass increased costs on to customers, transport companies still have to cope with rising expenditure for diesel, maintenance, and labor, resulting in continually squeezed profit margins and a business environment that is increasingly difficult.
Wu emphasized that the logistics and transportation industry is a critical pillar for the country's economic development, as well as a pivotal link in supply chain operations. If this sector is subjected to excessive cost pressures for an extended period, it not only threatens the survival of operators but could also drive up the prices of various goods—which would ultimately be borne by consumers.
He explicitly stated that, when formulating diesel subsidy policies, the federal government must fully consider the actual situations in Sarawak and Sabah. The two Borneo states together account for about 60% of the nation's total land area, while the 11 states in Peninsular Malaysia only account for about 40%. Because of East Malaysia’s vast territory and great distances between urban and rural areas, the mileage and diesel consumption of logistics vehicles are naturally much higher than in West Malaysia. If the national uniform standard quota system continues to be adopted, it will fail to reflect East Malaysia’s unique geography and transportation needs, thereby being blatantly unfair to local operators.
Wu bluntly stated: “When formulating policies, the government cannot proceed solely from an administrative perspective, but must also deeply understand the actual hardships at the grassroots. Sarawak and Sabah are vast; transportation costs are already high, so the diesel subsidy mechanism must be more flexible and tailored to local needs.”

To this end, he urged the federal government to immediately review the existing subsidy policy, and adjust the mechanism based on vehicle type, region, and actual operational needs—increasing the quota for ten-wheeler lorries from 1,800 liters to 4,500 liters, so as to meet the real needs of the industry and ensure the healthy operation of the logistics sector.
Wu also revealed that, after long-term visits to the grassroots and exchanges with logistics operators and SMEs, this subsidy policy has aroused widespread discontent. Notably, this dissatisfaction is not only coming from government critics, but also includes many leaders and grassroots supporters of the unity government component parties such as MCA, UMNO, and Gabungan Parti Sarawak (GPS), who have pointed their criticism at Prime Minister Datuk Seri Anwar and Pakatan Harapan, arguing that as the policy's main proponents, they must bear greater political responsibility.
He then shifted his tone, acknowledging that his repeated emphasis on this issue is definitely not meant to add insult to injury, but springs from genuine concern for Pakatan Harapan—it is precisely because he sees that the build-up of public resentment could undermine the foundation of governance that he chooses to be candid at this critical time. Frank words may be hard to hear, but if he can help contribute to adjusting the policy, he is willing to take on the “unpopular” role.
He stressed that the public is concerned not just about the subsidy system itself, but whether the government, when making cost-of-living policies, truly listens to grassroots voices and responds reasonably. If a policy is broadly burdening logistics operators, SMEs, and the lower-middle-income population, the government must seriously reconsider it, rather than ignore public discontent. The fundamental of governance must always prioritize the interests of the people.

Wu believes that the growing discontent over the diesel subsidy policy could further affect public confidence and support for the Prime Minister and Pakatan Harapan. He cited the issue of Unified Examination Certificate (UEC) recognition as an example, pointing out that the unity government has long been unable to effectively resolve this matter, with blame and negative public opinion often falling on Pakatan Harapan, especially the DAP as an important component.
At the grassroots level, the public rarely differentiates between roles within the government, but instead directly associate policy implementation and resulting hardship with Pakatan Harapan. Therefore, if this subsidy policy continues to increase the burden on the people, the related dissatisfaction may be reflected via votes in elections, becoming a political challenge Pakatan Harapan must face.
He concluded by urging the government to heed grassroots sentiment and promptly correct unsuitable policies to avoid one-size-fits-all measures that harm the interests of legitimate businesses. Wu hopes the federal government will quickly open dialogue with logistics sector representatives, chambers of commerce, and relevant industry organizations to extensively gather opinions, swiftly adjust the subsidy policy, ease the burden on businesses, and safeguard the smooth operation of the logistics supply chain to maintain national economic development and public well-being.

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联合日报新闻室


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