KOTA KINABALU: The state government must implement immediate measures to address the economic impact of escalating tensions in the Middle East, says Sabah State Assembly Backbenchers chairman Datuk Masiung Banah (pic).
He said the state must prepare for the ripple effects of rising costs of essential goods, including food and raw materials, by adopting short- and medium-term measures similar to those outlined by the federal government in response to surging oil prices.
“If the government is slow to act without an early action plan, traders may take advantage of the situation and prices of daily necessities could spiral out of control,” said Masiung, who is also chairman of state-owned Sedco Group.
He said the sharp increase in global crude oil prices could trigger a double inflationary effect that would ultimately raise the cost of living.
In a statement on Thursday (March 12), Masiung said the impact of rising fuel and import costs was already being felt by the people.
He added that if the conflict continues, the government must be prepared with additional fiscal measures to ensure the public is not unduly burdened.
Masiung also warned that financial pressures on the government could increase, including the possibility of a higher budget deficit.
He said the situation could worsen if diesel prices continue to rise, as higher transportation and logistics costs would eventually push up the prices of goods in the domestic market.
