SANDAKAN: Traders and business operators in the Tanjong Papat constituency have complained of being forced to raise their prices due to escalating procurement and transport costs, nearly one month into the implementation of the new diesel subsidy mechanism, said Bryan Chang Shak Hung (pic), Special Officer of the Tanjong Papat Assemblyman Service Centre.
Chang stated that traders have no choice but to adjust their prices to offset rising operational costs, but stressed that the additional financial burden would ultimately be passed on to the consumers.
Describing diesel as the lifeblood of Sabah’s economy, he noted that nearly all sectors—including transportation, logistics, and manufacturing—are heavily reliant on diesel supply. Any disruptions or issues with the subsidy policy would inevitably ripple through the entire supply chain.
He cited the example of spare parts traders who now face higher procurement costs for their inventory. Even after goods arrive at their shops, they must still absorb increased delivery charges when sending items to their customers.
“As costs mount at every level of the supply chain, prices continue to climb. By the time these goods reach the end consumer, they are already bearing the impact of multiple rounds of cumulative price increases,” he said.
Chang also highlighted the challenges faced by manufacturers, particularly in rural areas where poor internet connectivity has hindered online subsidy applications. This has forced entrepreneurs to visit relevant departments in person, only to encounter further technical glitches that delay approvals—leaving many still waiting for their subsidies while having to purchase diesel at market rates.
Chang urged the Federal Government to take Sabah’s unique realities into account. He called for an immediate review of the existing subsidy mechanism, simplifying application procedures, expediting approvals, and ensuring that eligible traders and operators receive timely assistance—to prevent continuous price hikes from further burdening the public. – James Leong
