Sabah postpones implementation of ‘Use of Premises’ fee


KOTA KINABALU: The state Local Government and Housing Ministry (KKTP) has revised and updated all relevant ordinances, including regulations on the use of premises (Use of Premises By-Law).

Deputy Chief Minister II and KKTP Minister, Datuk Seri Dr Joachim Gunsalam, announced that the implementation of the new regulation has been postponed.

He explained that the previous fee rates were too low, while the revised rates, following reassessment, were found to be too steep.

“As a result, I have requested that the implementation process be slowed down. All local authorities (PBT) must first conduct engagement sessions with stakeholders,” he said during the Local Authority Expedition Tour in Beaufort.

The increase in ‘Use of Premises’ fees by local authorities in Sabah has sparked concerns among business operators, with complaints surfacing over the sudden hike early last month.

The Sabah Association of Tour and Travel Agents (Satta) criticised the sharp increase, calling it "absurd" and warning that it could send the wrong message to stakeholders. Around the same time, the Malaysian Association of Hotels (MAH) Sabah/Labuan Chapter highlighted the financial strain on hotel operators, who now face significantly higher fees under Kota Kinabalu City Hall's (DBKK) new structure.

Meanwhile, Joachim noted that financial management remains one of the biggest challenges faced by most local authorities.

In addition, he emphasised the importance of creating new positions within local authorities.

“The ministry will assist as much as possible. If local authorities have strong financial standing, they can increase their staff intake,” he added.

The expedition tour aims to foster a closer understanding of each local authority in Sabah while identifying constraints, issues, and challenges they face in delivering the best services to the public.

“I am grateful that through this tour, several issues have been identified, and solutions have been sought for the local authorities visited. This tour will continue until all local authorities have been covered.

“Furthermore, this tour also helps the ministry in planning next year’s implementation at the Ministry level,” said Joachim, who is also the Kundasang assemblyman.

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