Consumer group: High logistics costs putting S’wak economy at risk


THE cost of living in Sarawak has reached a critical point, necessitating strategic action and more comprehensive intervention from both federal and state governments, an activist says.

Sarawak National Consumer Action Council (MTPN) chairman Lucas Lau (pic) stressed that the issue was no longer a matter of household expenditure but had begun to seriously affect the state’s economy.

“The people’s declining purchasing power is placing pressure on local businesses and stifling economic growth,” he said in a statement.

“If left unaddressed, the situation could widen the poverty gap and threaten social stability across communities in both urban and rural areas.”

MTPN believes the root of the problem lies in the state’s reliance on long and costly logistics chains.

“This has resulted in prices of essential goods in Sarawak being significantly higher than those in Peninsular Malaysia,” Lau said.

“Existing restrictions on the issuance of approved permits have created market conditions that lean towards a monopoly or oligopoly.”

Lau said such conditions directly restricted healthy competition, making price stabilisation difficult and ultimately causing consumers to bear a continuous burden.

“These long-standing issues require more extensive and comprehensive corrective measures, beyond mere price controls.

“While we appreciate ongoing efforts by Domestic Trade and Cost of Living Ministry to stabilise prices of essential goods, including through initiatives such as Jualan Rahmah and Menu Rahmah, higher-level policy intervention is still needed.”

Lau stressed that MTPN was committed to working closely with the ministry in championing consumers’ rights and welfare at grassroots level.

However, to resolve structural and regional issues, he said stronger intervention and support was required from both federal and state governments.

“More targeted transport subsidies must be introduced to reduce high logistics costs and ease the burden on both consumers and traders.

“Secondly, the government must significantly strengthen domestic agricultural production and local industries to reduce dependence on imports.

“Price-monitoring at grassroots level must also be reinforced and refined to ensure policy implementation is more transparent and effective,” Lau said. — By ANDY CHUA

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