PRESS RELEASE: Escalating Global Conflict Demands Urgent Action to Safeguard Sabah’s Economy and Food Security, Says Junz
KOTA KINABALU, 4 March 2026:Warisan Vice President Datuk Junz Wong has expressed deep concern over the potential far-reaching economic consequences arising from the escalating U.S.–Israel–Iran armed conflicts, cautioning that Sabah must not underestimate the ripple effects on its already fragile cost structure and food security.
Quoting international economic reports, Junz noted that the escalation in the U.S.–Israel–Iran conflict is amplifying global energy price volatility, raising inflation risks and market turbulence. Oil-importing nations, particularly across Asia and Europe, are already facing economic stress from price spikes and supply disruptions.
“Sabah may be geographically distant from the conflict, but we are economically connected to the world. Any surge in global oil prices, freight charges, insurance premiums and supply chain disruptions will inevitably translate into higher living costs and higher business operating costs here,” he said.
Junz cautioned the Gabungan Rakyat Sabah (GRS) state government to adopt proactive and pre-emptive measures to cushion Sabah from potential adverse impacts, especially given that the state is already well known for its high cost of living and high logistics expenses.
A former Sabah State Agriculture and Food Industries Minister, Junz expressed particular concern over Sabah’s vulnerability in terms of food security.
“Sabah remains heavily dependent on food imports. Any global shipping disruption or spike in fuel prices will immediately affect the prices of rice, wheat, fertiliser, animal feed and essential food items. In times of global uncertainty, food security becomes a matter of national and state resilience,” he stressed.
Recommendations to Strengthen Food Security and Control Living Costs
Junz proposed several immediate and medium-term measures for the State Government:
1. Accelerate Local Food Production
Expand incentives for padi, corn, vegetable and livestock farming to reduce import dependency, including improving irrigation infrastructure and mechanisation support.
2. Establish Strategic Food Buffer Stocks
Create state-level buffer reserves for essential staples to stabilise supply during global disruptions.
3. Strengthen Agro-Processing and Downstream Activities
Invest in local processing facilities to reduce reliance on imported finished food products and retain value within Sabah.
4. Improve Farm-to-Market Logistics
Upgrade cold-chain systems and rural road connectivity to reduce wastage and lower distribution costs.
5. Targeted Cost-of-Living Interventions
Implement focused assistance or temporary freight subsidies for essential food items should global energy prices surge significantly.
Junz also emphasised that Malaysia, as a trading nation, must pursue proactive fiscal, trade and market risk planning to cushion external shocks while managing domestic energy pricing carefully. At the state level, Sabah must intensify efforts to diversify its economy across oil and gas, agriculture and tourism to enhance resilience against global volatility.
Urgent Need to Address Sepanggar Port Inefficiencies
In light of heightened global shipping uncertainty, Junz stressed that the State Government and relevant authorities must urgently address the long-standing inefficiencies at Sepanggar Bay Container Port (SBCP).
“Global conflicts are driving up freight and insurance costs. Sabah cannot afford additional self-inflicted inefficiencies at our main gateway port. Delays, congestion and operational bottlenecks at Sepanggar Bay Container Port only compound costs for businesses and consumers,” he said.
He called for immediate operational audits, digitalisation of port clearance systems, performance benchmarks, and stronger coordination between port operators, customs and logistics players to ensure Sabah’s supply chains remain efficient and competitive.
“Peace may be beyond our control, but preparedness is not. Sabah must act decisively to protect its people from external economic shocks,” Junz concluded.
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