LABUAN: The Federal Territories Ministry is lobbying for the continuation of the 50 per cent subsidy amounting to RM17 million in 2015 for sea transportation involving ferries and speed boats, except private vehicles, to travel to and from Labuan.
The two-year-old subsidy, granted on Jan 1, 2013 is aimed at minimising the impact of higher goods prices and ease the burden of sea transportation commuters.
The ministry’s secretary-general, Datuk Adnan Md Ikshan said the government was considering to continue the implementation of the subsidy in the interest of the people in the duty-free island here.
He said his ministry and the Domestic Trade, Cooperative and Consumerism Ministry would ensure the subsidy was fully beneficial to the people of the island.
“We understand the predicament of the people on the island, (as such) we are making our best efforts to continue with the subsidy. Although there were loopholes or weaknesses in its implementation, efforts are in the pipeline to improve it for the better and ensure it achieves the objective,” he said in a statement to Bernama here yesterday.
The Labuan Consumer Action Council had highlighted the rationale and impact of the subsidy to the consumers, which it claimed did not benefit the people at large.
Its president, Fauziah Mohd Dun said only certain quarters benefited, especially transporters but not the consumers and small-time traders.
She said the subsidy was not making any impact towards reducing the prices of goods here.
The Labuan Domestic Trade, Cooperative and Consumerism Office acting director, Aslani Dabi had also said the 50 per cent subsidy being given to commercial vehicles must be re-studied.
“We were monitoring the situation but found that the subsidy did not give much effect to reduce the prices of products here,” he said. — Bernama