SANDAKAN: Growing tensions in the Middle East and rising petrol and diesel prices in Peninsular Malaysia could soon take a toll on Sabah’s economy, according to Sandakan Forwarders Association Chairman, Chong Thien Ming.
Although diesel prices in Sabah remain at RM2.15 per litre, Chong warned that the impact from West Malaysia is unavoidable.
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“A large amount of goods in Sabah such as building materials, agricultural products, and food are brought in from Peninsular Malaysia. When fuel prices go up there, costs here will also increase,” he said.
He said higher fuel prices will push up shipping and transport costs, as vessels and logistics operators face increased expenses.
“When transport costs rise, suppliers will have no choice but to increase prices. Delivery charges will also go up,” he added.
Chong noted that once goods are shipped and delivered, the higher costs will be passed down the supply chain. Forwarding companies may also introduce additional fees, including fuel surcharges for logistics and documentation services.
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“This situation is difficult to avoid due to current global uncertainties,” he said.
He urged the government to step in, especially to stabilise fuel prices for the service sector, to help small and medium enterprises (SMEs) cope with rising costs.
At the same time, Chong called for a delay in enforcing the Speed Limiting Device (SLD) requirement in Sabah for at least two years.
“The installation cost ranges from RM1,700 to RM2,000 per vehicle. Making it mandatory now will only add pressure on transport operators who are already struggling,” he said.
He also suggested that the Ministry of Transport first conduct a thorough study on Sabah’s road conditions before implementing such rules, noting that the Pan Borneo Highway project is still ongoing and may take years to complete.
Chong warned that prices of spare parts, goods, and services are expected to rise in the coming months, which could affect market stability.
“Many SMEs will feel the pressure, and businesses may have to adjust, including changes in their workforce,” he said.
He expressed hope that the government will introduce targeted support measures to help businesses weather the challenging economic period ahead.
