KOTA KINABALU: The rising fuel cost in Peninsular Malaysia will have a ripple effect on Sabah’s economy, says Sandakan Forwarding Agents Association (SFA) chairman Chong Thien Ming.
He said that although diesel prices in Sabah remain at RM2.15 per litre, the impact of fuel cost increases in Peninsular Malaysia is unavoidable since much of the state’s goods rely on shipments from there.
“Most items such as construction materials, agricultural products, and food supplies are imported from Peninsular Malaysia.
“Any increase in fuel costs there will inevitably affect prices in Sabah,” he said in a statement Saturday (April 4).
He said the higher fuel prices in the peninsula would drive up shipping charges as vessel operators face increased operating costs and this would force suppliers to adjust prices that raise delivery costs for consumers.
“When goods or containers are delivered to customers, the higher transportation costs are reflected in the overall price.
“Forwarding agencies may also need to impose additional charges such as fuel surcharges to cover operating expenses,” Chong said, adding the ripple effect was difficult to avoid especially in the current global market uncertainties.
He hoped the government take proactive measures, particularly in stabilising fuel prices for the service sector, to help small and medium enterprises (SMEs) remain resilient.
In a related development, Chong also proposed that the implementation of Speed Limiting Devices (SLD) for commercial vehicles in Sabah be postponed for at least two years.
He said that installation costs ranging from RM1,700 to RM2,000 per commercial vehicle would add financial strain to operators already facing rising operating expenses.
Additionally, he suggested that the Transport Ministry conduct a comprehensive study of road conditions in Sabah before enforcing the requirement, taking into account the ongoing construction of the Pan Borneo Highway.
Chong hoped that the government would introduce targeted policies and support measures to help the business community face the increasingly challenging economic outlook.
