PETALING JAYA: The domestic trade and cost of living ministry has proposed extending diesel subsidies to ferry operators serving the Kudat-Banggi Island route in Sabah following cuts to trip frequency because of rising fuel and operating costs.
Its minister, Armizan Mohd Ali, said the proposal has been submitted to the finance ministry for consideration, as the ferry is a key transport link for Banggi Island residents.
“The ferry service is the main transport link connecting residents of Banggi Island to Kudat town for economic and social activities, access to essential services, and supplies of daily necessities,” he said in a statement.
The ministry hopes the proposed subsidy will enable the two operators to increase the frequency of their trips.
Details of the implementation will be announced subject to the finance ministry’s approval.
Armizan also said that apart from providing fuel subsidies to diesel users, the ministry implements programmes and cost-of-living initiatives for residents of Banggi Island.
“These include strengthening the implementation of the Madani Rahmah sales programme and the essential goods distribution programme,” he said.
Thirty-five Madani Rahmah sales events had been held on the island from Jan 1 to Oct 18, compared with 31 in 2025.
The essential goods distribution programme on Banggi Island covers 77 points of sale across three zones - Karakit, Damaran, and the surrounding islands.
In August, Armizan said his ministry opened investigation papers under the Price Control and Anti-Profiteering Act against two ferry operators that had raised ferry fares in Kudat for trips between Kudat and Banggi Island.
He said there were complaints of elements of collusion, as both companies had jointly announced fare increases.
Armizan previously proposed that the state government consider the possibility of taking over licensing of passenger ferries under the Sabah ports and harbour department.