Monitor prices of goods following floods in Selangor’s industrial areas, Sabah govt told

KOTA KINABALU: The state government must closely monitor prices of goods following major floods in Selangor's industrial areas that might see a spike in the cost of goods in Sabah, says Warisan deputy president Datuk Darell Leiking.

He said that with the floods, there was a possibility of prices of goods involving processed foods, vehicle spare parts and electrical appliances to rise from between 10% and 15%.

"Whenever major flooding occurs in any part of the world, it would always affect the supply chain, notably the manufacturing and logistic sectors. A sudden increase in demand for vehicles' replacement parts in the peninsula at a time when manufacturers themselves are unable to operate efficiently will definitely cause the price of these products to soar," said Leiking, the former International Trade and Industry Minister, in a statement Thursday (Dec 30).

"The biggest loser of all would definitely be Sabah, since we don't produce our own vehicles' spare parts and are highly dependent for the same from the peninsula, where the demand is already high; additional shipping and land logistic costs in Sabah will exacerbate matters and we have seen how this impacted our local farmers in relation to the price of imported herbicides," he said.

He said it was important for the state government to prevent profiteering through strategic engagement, monitoring and enforcement with all the stakeholders and not just blame the traders for profiteering.

He added the state government must ensure the prices of goods remain under control and must engage with the business communities in Sabah, especially those who are dependent on supplies from the peninsula.