Following the recent removal of the blanket diesel subsidy in Peninsular Malaysia in favor of a targeted approach, many Malaysians expressed concerns that this move would cause a domino effect, leading to higher prices for goods and services.

Indeed, the removal of the blanket diesel subsidy has resulted in price hikes for services, but in an unexpected way and place.

Singapore transport and tour operators were caught using subsidized diesel in Malaysia all this time.

With diesel prices now at RM3.35/liter and subsidies channeled through BUDI MADANI cash aid and fleet cards to eligible recipients, Singaporean transport and tour operators have announced plans to increase prices for their customers.

As reported by CNA, companies such as Singapore Cab Booking, whose CEO Farid Khan mentioned, “We have the Singapore-KL overland transfer. With the 50% increase in diesel prices, the price is almost equal to Singapore’s diesel price.” Consequently, the company plans to raise prices by at least 20%.

Additionally, Singaporean companies EU Holidays, WTS Travel, and Singatour have confirmed price hikes, citing shrinking profit margins due to Malaysia’s subsidy removal.

Malaysians have called out Singaporean businesses for abusing Malaysia’s subsidy mechanism.

Many Malaysians took to social media to criticize these Singaporean operators for essentially admitting to using subsidized diesel from Malaysia for their businesses. One commenter sarcastically remarked, “Rich country but steals subsidies from a poor nation.” Another questioned whether this is how a first-world economy operates, by exploiting subsidies from other countries. Meanwhile, one commenter pointed out that the CNA report uncovered another leakage in Malaysia’s subsidy mechanism, highlighting one of the reasons behind the subsidy removal in the first place.