KOTA KINABALU: The business community in Sabah has raised concerns over recent electricity tariff increases, warning that higher power costs will raise the cost of doing business and negatively affect small and medium enterprises (SMEs), manufacturers and investment growth, said Federation of Sabah Industries (FSI) president Natalie Fung (
pic) on Thursday.
While acknowledging the need for a financially sustainable electricity supply system, Fung said tariff adjustments must be carefully managed to avoid undermining Sabah’s competitiveness, particularly as businesses already face higher logistics and operational costs than those in Peninsular Malaysia.
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She said electricity is a key cost component for sectors including manufacturing, agro-processing, cold chain logistics, hospitality and services, and that higher tariffs would directly affect production costs, cash flow and profit margins, especially for SMEs with limited capacity to absorb sudden cost increases.
Fung warned that rising electricity costs could weaken Sabah’s attractiveness as an investment destination at a time when the state is promoting industrialisation and value-added activities under the Sabah Maju Jaya development agenda.
She said FSI has proposed measures, including targeted tariff relief or rebates for SMEs and strategic sectors, phased and predictable tariff adjustments with sufficient notice, energy efficiency incentives, accelerated adoption of renewable energy, shared energy solutions in industrial parks, and closer engagement with the government to ensure power remains affordable and predictable.
