Luyang Assemblyman Samuel Wong has expressed strong dissatisfaction over the recent electricity tariff hike in Sabah, warning that the move could further strain the region’s economy, particularly small and medium enterprises (SMEs) and consumers already grappling with high living costs.
Samuel said the tariff increase comes at a time when Sabah has been facing persistently high food prices for years, with costs among the most expensive in Malaysia, placing continuous pressure on households and businesses alike.
“Electricity is a basic operating cost for almost every business. When electricity tariffs rise, the impact does not stop at business owners, eventually it will passed down to consumers,” he said in a statement.
Samuel highlighted that restaurants, coffee shops, hawkers, and food operators are among the sectors most affected, as electricity is essential for refrigeration, cooking, lighting, and daily operations.
“With food prices already high and unresolved for years, this new electricity hike will likely force restaurants to raise prices again. When food prices go up, consumers suffer, and dining out becomes less affordable,” he said.
He warned of a domino effect, where higher food prices could reduce consumer spending, discourage people from dining out, and ultimately hurt businesses especially SMEs that rely on steady daily cash flow.
“This cycle is unhealthy. When consumers cut back spending, businesses are affected, workers’ incomes are pressured, and economic growth slows,” Samuel added.
Samuel stressed that the government should prioritise improving efficiency in the electricity sector before resorting to tariff hikes.
“Consumers should not be made to pay higher tariffs when efficiency issues remain unresolved. Until today, many consumers especially in Kota Kinabalu city continue to experience frequent power outages,” he said.
He noted that power disruptions affect not only households but also businesses, causing operational losses, food spoilage, service interruptions, and additional costs.
“When reliability and service quality are still a concern, it raises serious questions about whether tariff increases are justified. Efficiency, system stability, and service reliability must come first,” Samuel said.
He added that reducing technical losses, improving infrastructure maintenance, strengthening governance, and enhancing transparency should be prioritised to stabilise costs and improve service delivery.
Samuel emphasized that economic policy should focus on stimulating growth before adjusting essential utility costs.
“The government should prioritise job creation, SME expansion and industrial downstream development. When incomes rise and businesses are stronger, any future tariff review becomes more manageable,” he said.
He cautioned that raising electricity tariffs before economic fundamentals are strengthened risks slowing Sabah’s growth and weakening the competitiveness of local businesses.
If adjustments are unavoidable, Samuel urged the government to introduce relief and transition measures, particularly for SMEs and essential sectors.
“These could include phased increases instead of sudden hikes, temporary electricity rebates, or targeted assistance to help businesses cope with rising operating costs,” he said.
Samuel reiterated that Sabahans are not against development or reform, but policies must be people-centric and grounded in current realities.
“The people are not opposing progress. What they oppose are policies that increase their burden when the cost of living is already high and basic services remain inconsistent,” Samuel concluded.
