Deputy Chief Minister Alfred Jabu said today that the Sarawak government will not provide additional subsidy to the sale of petrol, diesel and liquefied petroleum gas (LPG) in the state at the expense of reducing the allocation for project implementation.

Instead, he said that the people had to learn now and be prepared for a day that they might have to live with the cost of living when the sale of fuel in the local market was no longer subsidised.

"The state government is happy with the measures taken by the federal government in adopting a moderate stand to address the oil price increase in the country, with a certain quantum on the price hike," he told the Sarawak Legislative Assembly sitting.

Jabu, who is also Sarawak Infrastructure Development and Communications Minister, said in a reply to Daniel Ngieng (BN-Bukit Assek) that the federal government's expenditure as subsidy for these petrol products were expected to increase to about RM6.6 billion this year from RM4.8 billion last year.

The federal government had also declared petrol, diesel and LPG as scheduled items under the Supply Control Act 1961, with the retail prices being regulated to lessen the burden of high living costs to the people, he added in a Bernama report.

Licences for two

Meanwhile Deputy Chief Minister Dr George Chan said the International Trade and Industry Ministry (MITI) had approved and issued manufacturing licences to two investors - Comalco Aluminia and Smelter Asia Sdn Bhd to set up the proposed aluminium smelter plant in Similajau, Bintulu.

Replying to Chiew Chin Sing (DAP-Kidurong), he said the state government had also entered into a memorandum of understanding (MOU) with Rio Tinto Aluminium for the proposed project, for which the environment impact assessment (EIA) study needed to be conducted and a report submitted to the Director-General of Environment Quality for approval.