KOTA KINABALU: New rules imposed by government agencies have burdened small and medium enterprises (SMEs) in Sandakan already pressured by rising operational costs, supply shortages and port problems, say business operators.
The Sandakan Hardware Machinery and Building Materials Merchants Association, Sandakan Building Contractors Association and Sandakan Builders’ Association said in a joint statement on Friday (Oct 2) that new policies must be studied and tested before being implemented.
Voicing their concern for the future of SMEs in Sandakan, they said the added administrative rules are now causing small construction, renovation and upgrading firms with limited staff to suffer.
They pointed out new rules from the Labour Department, Social Security Organisation (PERKESO), Construction Industry Development Board (CIDB) and Occupational Safety and Health Department (DOSH).
The groups cited two minimum wage hikes in one term, advance tax instalment notice (CP500), e-invoicing, safety coordinator rules and fuel subsidy changes as among the issues faced by business operators.
For example, companies with five or more workers must appoint a safety coordinator, with a three-day course and exam costing about RM800 to RM1,200, they said.
The groups said they support better welfare, safety and governance, but new policies must be studied and discussed with stakeholders, who should be given time to adjust.
Application of these policies should also be consistent, they added.
"National policies must also consider Sabah and Sarawak’s long distances and higher logistics costs," they said, adding that issues at Sandakan Port need to be looked into as well.
They said mobile harbour cranes have stopped operating and often break down because of inadequate repairs.
They appealed for new cranes, backup equipment and a clear short- and long-term plan urgently because the coming PETRONAS gas project will increase port demand.
The statement also noted that cement supply problems, including disruption of both bulk and bagged cement deliveries, have caused delays that affect projects, contractors, hardware shops, transport companies, machinery rental firms and workers.
On rising fuel and transport costs, they suggested that the government revive barter trade with the southern Philippines to boost the local economy as part of the solution.
"Sandakan has potential, but businesses need stable policies, a working port and reliable materials," they said, stressing that the government should consult stakeholders before introducing new rules and solve current problems while pursuing big projects.
