KOTA KINABALU: The Sabah branch of the Malaysian International Chamber of Commerce and Industry (MICCI) is emphasising the urgent need for federal assistance following a warning from Sabah Electricity (SE) chairman Datuk Seri Wilfred Madius Tangau about a potential total blackout early next year if subsidy needs are unmet.
In a statement released here, Sabah MICCI chairman Datuk Lee Swi Heng highlighted that current investors and industry players in Sabah should not suffer detrimental business losses due to this predicament.
Tangau stated on Monday (Nov 4) that SE, as a utility company, currently operates on a subsidy basis and that Sabah may experience a total blackout by early 2025 if the Federal Government ceases its electricity subsidy.
He mentioned being informed by the Sabah Energy Commission (ECoS) through a letter that the RM866mil subsidy for 2024 cannot be considered at present, citing federal fiscal constraints as the reason for not providing additional allocation for power supply needs in the state.
Tangau further explained scenarios in which SE will struggle to pay independent power producers (IPPs) and fuel suppliers, leading to the risk of fuel supply being blocked to power plants and potentially collapsing the entire system.
This could trigger a chain reaction affecting hospitals, airports, and essential services.
He warned that SE's financial position will hold only until Jan 2025, after which a complete blackout is a real possibility.
"The persistent issue of unreliable and unsustainable electricity supply in Sabah continues to impede potential investments and disrupt existing businesses," he said.
"We therefore reaffirm the Chamber’s support for the state government’s appeal for the reinstatement of the RM866mil electricity subsidy needed for 2024.
"It is our hope that businesses can continue to operate as usual in January 2025 (and beyond)," urged Lee, stressing that national security is at stake.
At the same time, Lee emphasised the dire need for concrete plans to address medium and long-term power supply issues, ensuring an efficient and sustainable energy future for Sabah.
