Kota Kinabalu: The State Ministry of Community Development and People’s Well-Being (KPMKR) assured enforcement will be carried out to prevent the abuse of subsidised diesel and unreasonable price hikes of essential goods.
KPMKR Assistant Minister Flovia Ng (Star–Tulid) said among them are Ops Tiris 3.0 which is monitoring of gas stations and fuel distributors, Ops Kesan 2024, inspections of goods distribution in the supply chain and Ops Catut 2024, inspections to ensure traders comply with the Price Control and Anti-profiteering Act (AKHAP) 2011 now focusing on school, bakery items and ready-to-eat food.
“There is no withdrawal of diesel fuel subsidy as in peninsula. Instead, the previous diesel subsidy enjoyed in bulk has been retargeted to the eligible to the deserving group,” she told (Star-Liawan) Datuk Annuar Ayub.
Annuar asked what actions or mechanism would be taken by the state to ensure no increase in the price of goods in following the retargeted diesel fuel subsidies in peninsula involving logistics costs.
Datuk Darell Leiking (Warisan–Moyog) asked if there are plans to expedite the offloading of goods delivered to Sabah so shipping cost can be maintained.
“Sabah is cabotage exempt but the subsidy retargeting will raise costs that pass through the ordinary people.
“Our ports cannot sustain (the inbound cargo) and a surcharge will be imposed sometime this month. Port authorities will be charging more from Sabah. This means in the next week all of the cost of goods will rise,” he said.
Sabah State Assembly Speaker Datuk Seri Kadzim Yahya told him that the matter involved transportation and is above KPMKR.
Darell, however, was adamant it is under the Ministry because of “the butterfly effect”. He was told to receive a written answer.
Datuk Seri Yong Tec Lee (SAPP-Appointed Assemblyman) agreed with Darell saying the peninsula-Sabah supply chain had already begun moving and the impact would be felt within the coming three months.
“This is not including the RM500 to RM1,000 surcharge for each container. I hope the Ministry gives attention to this matter because in our trade relationship with peninsula, Sabah is in a deficit.
“We import more than we export and returning containers are often empty. It will result in price hikes on items outside KPDN’s control causing a chain reaction.
“So, is the Ministry planning on studying this price hike and will it impose import substitution to decrease imports from peninsular by ramping production in Sabah?” Yong asked.
KPMKR Minister (PGRS-Sugut) Datuk James Ratib said Sabah KPDN only monitors controlled goods.
“If there are price hikes on diesel, eggs, cooking oil, for example, then we can take action. Other goods are not under KPDN and that is under another Ministry,” he said.
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