SANDAKAN: Sandakan Forwarders Association chairman and Sandakan Hire Lorry Transport Association deputy chairman Chong Thien Ming today expressed concern over the ongoing conflict in the Middle East and the recent increase in petrol and diesel prices in Peninsular Malaysia, warning that these developments could directly and indirectly impact Sabah’s economy.
Although diesel prices in Sabah remain at RM2.15 per litre, Chong noted that the broader implications are unavoidable. “A significant portion of goods in Sabah, including building materials, agricultural products and food supplies, are imported from West Malaysia. Any increase in fuel prices there will inevitably drive up costs here,” he said.
He explained that higher fuel prices would lead to increased freight charges, as vessel operators incur higher diesel costs when transporting goods to Sabah. “Suppliers will have no choice but to raise prices, and delivery costs will also increase accordingly,” he added.
Chong further highlighted that once goods or containers are declared and transported to customers, the rising transportation costs will be reflected in overall pricing. Forwarding agencies, he said, may also be compelled to introduce additional charges, such as fuel surcharges for documentation and logistics services.
“This situation is unavoidable due to the current market uncertainties,” he stressed.
Chong urged the government to intervene, particularly in stabilising fuel prices for the service sector, to help small and medium enterprises (SMEs) navigate the challenging economic environment.
He also called for the implementation of the Speed Limiting Device (SLD) requirement in Sabah to be deferred for at least two years, citing the need for economic stability. “The cost of installing SLD ranges between RM1,700 and RM2,000 per unit, and making it mandatory for all commercial vehicles at this time will place additional financial burden on vehicle owners who are already struggling,” he said.
In addition, Chong suggested that the Ministry of Transport conduct a comprehensive study on road conditions in Sabah before enforcing such measures, noting that the Pan Borneo Highway project is still ongoing and may take several more years to complete.
Looking ahead, Chong predicted that prices of spare parts, consumer goods, and services are likely to rise sharply in the coming months, potentially leading to market instability. “Many SMEs will be affected, and we may see shifts in the workforce as businesses adjust to rising costs,” he said.
He expressed hope that the government would introduce targeted policies and support measures to assist the business community in weathering a potential economic downturn.
