FMM proposes crisis adjustment mechanism under SKDS

FMM In The News: NEW STRAITS TIMES, June 18, 2026


KUALA LUMPUR: The Federation of Malaysian Manufacturing (FMM) has proposed the establishment of a Crisis Adjustment Mechanism within the Subsidised Diesel Control System (SKDS).

Its president, Jacob Lee Chor Kok said that under such a mechanism, temporary and targeted quota adjustments could be considered when major external disruptions significantly affect transportation and supply chain operations.

"This would provide a structured avenue for businesses and transport operators to seek temporary relief based on demonstrated operational requirements while preserving the overall objectives of subsidy rationalisation," he said in a statement today.

Additionally, he said such a mechanism could be implemented through the existing Petroleum Subsidy Approval Committee with an accelerated review process during recognised disruptions.

"This would enable genuine operational requirements arising from extraordinary circumstances to be assessed quickly while maintaining the integrity of the subsidy system," Lee said.

"FMM stands ready to work closely with KPDN and other relevant agencies to develop solutions that strengthen subsidy governance while safeguarding supply chain resilience, economic competitiveness and consumer interests," he said.

KPDN recently revised the fixed quota limits under the SKDS for the goods transportation sector to strengthen regulatory controls and curb subsidy leakages and misuse of fleet cards.