Wednesday, 24 June 2026

Putrajaya expanding BUDI Agri-Commodity Programme to Sarawak to help farmers, smallholders cope with high cost of buying fuel

KUCHING, June 24 2026: The federal government is expanding the implementation of the BUDI Agri-Commodity Programme to Sabah and Sarawak to help farmers and smallholders cope with the high cost of purchasing fuel following the implementation of the targeted diesel subsidy mechanism. 

Caption: Second Finance Minister Amir Hamzah Azizan briefing the media

Second Finance Minister  Amir Hamzah Azizan said the expansion will allow farmers and smallholders in both states to apply for monthly cash assistance through agencies designated by the government. 

According to him, eligible recipients will receive a cash assistance of RM200 a month along with an interim assistance of RM200 a month, making a total of RM400 a month to reduce the burden of operating costs due to the purchase of diesel at market prices. 

“As implemented in Peninsular Malaysia, the BUDI Agri-Commodity initiative will also be expanded to Sabah and Sarawak where farmers and smallholders in both states can submit applications through the Ministry of Agriculture and Food Security, Ministry of Plantations and Commodities or designated state government agencies. 

“Through the initiative, they are eligible to receive cash assistance of RM200 per month along with an additional interim assistance of RM200, making a total of RM400 per month to reduce the burden of diesel purchase costs at the floating market price,” he said at media briefing session on the implementation of the Diesel Subsidy Targeting Reform today. 

In an effort to ensure that more agri-commodity sector operators in Sabah and Sarawak benefit, the government has also expanded the list of eligibility verification agencies involving various related industry bodies. 

Among the agencies involved are the Malaysian Palm Oil Board, Malaysian Rubber Board, National Kenaf and Tobacco Board, Malaysian Cocoa Board, Malaysian Pepper Board, as well as the Sabah Rubber Industry Board and Sarawak Rubber Industry Board.

Amir Hamzah said that the agencies will verify eligibility applicants before assistance is channeled directly through cash transfers every month.

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