Malaysia Ministry of Domestic Trade proposes diesel subsidies for Kudat-Pulau Banggi ferry

The Ministry of Domestic Trade and Cost of Living (KPDN) has proposed to the Ministry of Finance that diesel subsidies be extended to ferry operators on the Kudat-Pulau Banggi route. Minister Datuk Armizan Mohd Ali stated that the proposal follows a reduction in ferry trip frequencies by two existing operators, which has been linked to rising operational and diesel fuel costs.

KPDN, along with the Banggi state assemblyman and relevant government agencies, has conducted engagement sessions with the ferry operators to discuss the issue. The ferry service is considered a vital transport link connecting Pulau Banggi residents to Kudat for economic and social activities, as well as access to basic services and daily necessities.

The minister emphasized that the subsidy proposal is intended to meet the actual needs of local residents rather than to support tourism. If approved by the Ministry of Finance, the subsidy is expected to allow operators to increase trip frequencies. Details regarding the implementation mechanism will be announced once a decision is reached.