SANDAKAN: Three Sandakan business associations say local companies are facing rising costs, supply shortages, port problems and more government rules. Small and medium-sized firms are suffering most.
The groups are the Sandakan Hardware Machinery and Building Materials Merchants Association, Sandakan Building Contractors Association and Sandakan Builders’ Association.
They said members face raw material shortages, port and logistics delays, oil price changes, higher costs and more administrative rules. Many are small construction, renovation and upgrading firms with limited staff. New rules from agencies such as the Labour Department, SOCSO, CIDB and JKKP are a heavy burden.
They cited policies including two minimum wage hikes in one term, CP500 tax instalments, e-invoicing, safety coordinator rules and fuel subsidy changes. Companies with five or more workers must appoint a safety coordinator, with a three-day course and exam costing about RM800–RM1,200.
The groups said they support better welfare, safety and governance. But they want new policies to be studied, discussed with industry, given time to adjust, and applied consistently. National policies must also consider Sabah and Sarawak’s long distances and higher logistics costs.
They also raised concerns over Sandakan Port. Mobile harbour cranes have stopped operating. The cranes break down often, and repairs are not enough. They want new cranes, backup equipment and a clear short- and long-term plan. This is urgent because Petronas’ gas project will increase port demand.
Cement supply is another problem. Bulk cement was disrupted, then bagged cement. Cement is essential, so delays affect contractors, hardware shops, transport, machinery rental and workers. Projects may slow down or stop, while contractors still pay wages and fixed costs. They want stable supply, enough East Coast stock and an emergency plan.
They also said fuel and transport costs are rising. They want the government to revive barter trade with southern Philippines to boost the local economy.
The groups said Sandakan has potential, but businesses need stable policies, a working port and reliable materials. The government should consult industry before new rules and solve current problems while pursuing big projects.
Present at the meeting were presidents Johnny Yek (Sandakan Hardware Machinery and Building Materials Merchants Association), So Chee Ming (Sandakan Building Contractors Association) and Chan Boon Thian (Sandakan Builders’ Association). – James Leong
A group photo of the office bearers of the three associations after the joint meeting.
