KOTA KINABALU: The 15% electricity tariff hike is set to have a ripple effect for businesses as it could not only raise the cost of operations but also see higher cost of goods and services in Sabah, warns Warisan.
Its vice-president, Datuk Junz Wong, described the hike as ill-timed and flawed as it reflected a disconnect from the realities on the ground, as businesses have already raised their objections to the hike that was announced on Jan 31, a day before it took effect on Feb 1.
He said that the Sabah Entrepreneurs Association, the Federation of Malaysian Manufacturers (FMM-Sabah Branch) and the Sabah Association of Tour and Travel Agents (Satta) were already cautioning that the tariff hike would trigger a ripple effect of higher prices across the economy, ultimately hurting ordinary Sabah consumers.
“When micro businesses, manufacturers, hotels, restaurants and tourism operators are all sounding the alarm, the message is clear — this tariff hike will be passed down to consumers and worsen Sabah’s already high cost of living,” he said in a statement on Wednesday (Feb 4).
Wong, who is Tanjung Aru assemblyman, said Sabahans were already paying more for food, basic necessities and services compared to other states, while businesses here face higher logistics and operating costs due to Sabah’s structural disadvantages.
He criticised the state government for implementing the tariff hike without proper consultation, as various groups, including FMM, raised concerns that industry stakeholders were not given adequate notice or a chance to engage before the decision was finalised.
“How can the state government justify a sudden 15 per cent tariff increase when Sabah continues to suffer from frequent power outages, unstable supply and unreliable electricity across the state?” he asked.
Wong said businesses have endured repeated losses from power disruptions — from spoiled food and disrupted operations to reduced productivity — yet are now being asked to pay more for a service that remains inconsistent.
“This decision shows how detached the GRS government is from the harsh realities faced by Sabahans. Is this how GRS rewards the people after winning the state election — by raising tariffs while failing to fix basic infrastructure?” he said, urging the government to justify its decision to allow the increase.
He said the tariff hike contradicts the government’s stated goal of easing cost-of-living pressures and supporting SMEs, warning that it could undermine entrepreneurship, investment confidence and Sabah’s economic recovery.
“Electricity is a basic necessity. Any increase must be fair, transparent and matched by real improvements,” he added.
