KOTA KINABALU: Conflict in the Middle East could affect Sabah’s economy, particularly trade and supply chains, says Ewon Benedick.
Ewon, who is also Industrial Development, Entrepreneurship and Transport Minister, said the matter is not specifically on the agenda for the State Cabinet meeting on Wednesday, but the Chief Minister may address the broader economic impact.
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“We are affected because Sabah is a trading state. We export crude palm oil and are also involved in oil and gas exports,” he said.
He added that disruptions to air and sea transport could affect supply chains, including cargo flights carrying goods in and out of Sabah.
According to him, airlines such as AirAsia have indicated that the conflict is already affecting air routes, which could delay shipments, including goods meant for the festive season.
“Flights may have to be diverted or cancelled, and sea transport routes could also be affected,” he said.
Ewon said wars often impact not only the countries involved but also others connected through global trade and supply chains.
Separately, he also witnessed the signing of a Memorandum of Understanding between Sabah Oil and Gas Development Corporation (SOGDC) and SEDCO Mining Sdn Bhd for the supply of sand for reclamation works at the Sabah Oil and Gas Industrial Park (Sogip) in Sipitang to support industrial expansion.
