Sabah Electricity Tariff Hike: Small Businesses and Rural Communities Must Not Carry the Burden

By Daniel John Jambun, President Change Advocate Movement Sabah.

KOTA KINABALU: Change Advocate Movement Sabah (CAMOS) expresses serious concern over the Sabah electricity tariff increase that took effect on 1 February 2026, which has been described by Hajiji Noor as “unavoidable” and “minimal”.

For small businesses and rural users, this characterisation does not reflect reality.

For many kedai runcit, hawkers, workshops, fishermen, farmers, and micro-entrepreneurs, electricity is not a luxury — it is a basic operating cost. A 15% increase, even if framed as “only RM15”, directly affects daily cash flow, pricing, and survival margins. In rural Sabah, where incomes are lower and alternatives are limited, such increases are felt immediately and disproportionately.

CAMOS is particularly concerned that tariff adjustments are being implemented before clear reforms are demonstrated. Small businesses and rural communities are being asked to absorb higher costs without:

assurance of improved reliability and fewer outages

transparency on inefficiencies, losses, and legacy power contracts

targeted protection for low-usage and rural consumers

Comparisons with Peninsular Malaysia are misleading. Sabah’s small businesses operate in a weaker economic environment, face higher logistics costs, and endure less reliable power supply. Tariffs must be assessed against ability to pay and quality of service, not national averages.

CAMOS emphasises that Sabahans are not opposing reform. However, reform must begin with:

accountability within the power sector

fairer cost-sharing that does not punish micro and rural enterprises

clear safeguards for vulnerable users

Passing rising costs downward to small businesses and rural households without visible systemic reform risks deepening inequality and eroding trust.

CAMOS therefore calls on the Sabah Government to:

Introduce targeted relief or tiered protection for small and rural users

Publish a transparent roadmap on cost reduction and service improvement

Ensure that efficiency and accountability precede further tariff adjustments

Economic resilience in Sabah depends on protecting those who keep local communities alive — not pricing them out.

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