Kota Kinabalu: Sabah Entrepreneurs Transformation (SET) founder and chairperson Datuk George Lim has called for immediate and coordinated action to address growing economic pressures driven by rising global prices, which are increasingly straining household spending and undermining business sustainability.
The warning follows recent remarks by Anwar Ibrahim on the escalating cost of living driven by global conflicts, as Sabah is particularly vulnerable due to its dependence on imported goods and higher logistics costs, which amplify the impact of global supply chain disruptions.
“Prices of food, daily essentials, and key business inputs are expected to increase further, placing additional burdens on consumers and enterprises across the state,” he said in a statement on Friday.
He added that Small and Medium Enterprises (SMEs), widely regarded as the backbone of Sabah’s economy, are among the hardest hit, as businesses grapple with rising operating costs, tightening cash flow and weakening consumer demand.
“Stabilising SMEs today is critical to protecting jobs, sustaining supply chains, and securing Sabah’s economic future,” he stressed, noting that without immediate support, many businesses may struggle to survive the current economic state.
George also highlighted the structural vulnerabilities facing Sabah, noting that reliance on external supply chains leaves the state exposed during periods of global volatility while urging immediate measures to strengthen local resilience by boosting food production, advancing agro-based industries, and building up basic manufacturing capabilities within the state.
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He also urged authorities to improve access to financial support for businesses.
“Faster loan approvals, increased availability of micro-financing, and targeted assistance for high-risk sectors are essential to help SMEs manage cash flow and sustain operations during this challenging period,” he said.
Additionally, he encouraged businesses to pursue growth opportunities beyond local markets.
“Beyond survival, Sabah businesses must also be supported to grow and adapt. This includes accelerating market expansion beyond local boundaries, leveraging digital platforms, and tapping into regional and international opportunities.
“In parallel, businesses should be encouraged to adopt digitalisation and improve cost efficiency to build more resilient and scalable operations in the face of ongoing uncertainty,” he said.
George emphasised that collaboration between government, financial institutions, and the private sector will be crucial in navigating the current crisis.
“This is a critical moment that calls for strong collaboration,” he said, adding that timely intervention could both cushion immediate impacts and position Sabah for long-term, sustainable growth.
With living costs continuing to rise, he warned that the situation is no longer a future concern but an immediate reality.
“The actions taken now will determine whether Sabah’s SMEs can endure the challenges ahead or face increasing hardship,” he said.
