Malaysia’s diesel subsidy surges to RM2.5b monthly, Loke says EV trucks must replace fuel‑hungry fleets

KUALA LUMPUR, May 14 — Malaysia’s diesel subsidy has jumped to RM2.5 billion a month as ongoing tensions in West Asia continue to choke global oil supply, Transport Minister Anthony Loke said today. 

Loke said the government hopes for a gradual transition towards electric (EV) trucks, while noting that business operators will require adequate incentives to make that shift. 

“This (RM2.5 billion) is something very huge. Financially, it is very, very hard for the government to sustain this,” Loke said in his opening remarks at the Malaysia Commercial Vehicle Expo 2026 here today.

“Nevertheless, the government will try our level best to ensure that we can continue to help the industry weather the current storm. 

“But over the long term, what we are hoping is that there will be a gradual transition towards EV trucks,” he added. 

Loke said the Special EV Task Force will be meeting Transport Ministry officials next week to discuss incentives for businesses adopting EVs. 

While acknowledging that the transition to EV trucks would require massive investments to develop charging infrastructure, Loke said doing so would help Malaysia’s fuel-efficiency needs and net-zero goal by 2050.

The ministry, he said, is also exploring the option of introducing telematics in all trucks to ensure drivers stay vigilant on the road and provide companies with a more robust monitoring system. 

However, he stressed that the ministry will not make telematics mandatory but rather wants to encourage transport operators to gradually adopt the practice as part of their corporate safety culture.

“I hope that we do not have to use the stick all the time. We hope to use carrot more, to encourage, so that industries can adopt willingly and happily,” he added.