Kota Kinabalu (Feb 4) - A recent 15% increase in electricity tariffs is expected to create knock-on effects across Sabah’s economy, with concerns that higher operating costs for businesses will eventually be reflected in the prices paid by consumers. Warisan has cautioned that the adjustment could intensify existing cost pressures faced by both companies and households in the state.
The party’s vice-president, Datuk Junz Wong, said the timing and execution of the tariff revision were problematic, noting that it was announced on Jan 31 and implemented almost immediately on Feb 1. According to him, the move showed a lack of alignment with on-the-ground realities, especially as businesses had already voiced objections before the increase came into force.
He pointed out that key industry groups, including the Sabah Entrepreneurs Association, the Sabah branch of the Federation of Malaysian Manufacturers and the Sabah Association of Tour and Travel Agents, had warned that the higher electricity charges would likely lead to a chain reaction of rising prices throughout the economy. Increased costs faced by micro enterprises, manufacturers, hotels, restaurants and tourism operators are expected to be passed on to consumers, further driving up the cost of living in Sabah.
For Sabahans, this is a significant concern as daily expenses for food, basic necessities and services are already higher compared to many other states. At the same time, local businesses contend with greater logistics and operational costs due to long-standing structural challenges unique to Sabah.
Wong also criticised the state government for proceeding with the tariff hike without adequate consultation. He said industry stakeholders, including manufacturers, had raised concerns that they were not given sufficient notice or a meaningful opportunity to engage before the decision was finalised.
He questioned the justification for a sharp increase in electricity charges when Sabah continues to experience frequent power outages, unstable supply and reliability issues across various areas. Businesses, he noted, have suffered repeated losses due to power disruptions, including spoiled goods, interrupted operations and lower productivity, yet are now required to pay more for an electricity supply that remains inconsistent.
According to Wong, the decision contradicts the government’s stated commitment to easing cost-of-living pressures and supporting small and medium enterprises. He warned that higher energy costs could weaken entrepreneurship, reduce investor confidence and slow Sabah’s economic recovery.
As electricity is an essential service for both households and businesses, he stressed that any increase should be implemented fairly and transparently, and must be accompanied by tangible improvements in service quality. Without such improvements, the tariff hike risks placing an additional burden on Sabahans while offering little immediate benefit in return.