Penang’s state government is studying a WFH policy to ease cost burdens from rising diesel prices, pending federal directives.

GEORGE TOWN: The Penang state government is evaluating the implementation of working from home arrangements for its civil servants. This consideration follows the increased financial pressure from rising fuel prices, particularly diesel, linked to the West Asia crisis.

Chief Minister Chow Kon Yeow stated the state will await further instructions from the federal government before deciding. “The WFH approach is not something new as it was implemented during the COVID-19 pandemic, but we will wait for instructions from the federal government,” he told reporters.

He explained that WFH is a potential measure to reduce the burden of operating costs and daily travel expenses. The federal government is currently fine-tuning flexible work arrangements, including WFH, to cushion the impact of global oil supply disruptions.

Chow highlighted that the diesel price hike also indirectly impacts government sectors like local authorities. Solid waste management services, which depend entirely on diesel for their truck fleets, are particularly affected.

He noted that some contractors cannot use subsidised diesel and must purchase industrial diesel. “With this price surge, it will affect our contractors in terms of costs,” he said.

Unlike sectors that can reduce operations, such as ferry services, waste collection must continue daily. Chow indicated that increased costs may have to be borne by local authorities, as contracts often allow for such claims.

The retail price of diesel in Peninsular Malaysia recently rose by 80 sen to RM5.52 per litre. The price of RON97 petrol also increased by 60 sen to RM5.15 per litre for the same period.

 The Sun Malaysia