Postpone electricity tariff, Warisan man tells Sabah Electricity

KOTA KINABALU (Feb 6): Parti Warisan’s (Warisan) strategic communication director, Christopher Masudal is urging the Sabah government to immediately postpone the implementation of the Sabah Electricity Sdn Bhd (SESB) electricity tariff increase.

He said the state government must engage meaningfully with all relevant stakeholders to deliberate and reach a consensus on how the tariff adjustment can be implemented gradually, transparently and responsibly.

He reminded that this was not about politics but about the livelihood of the Sabah people.

“As a party official of Warisan, which has consistently maintained that Sabah’s long-term economic strength lies in industrialisation, downstream activities and the empowerment of SMEs and professionals, I call upon the state Cabinet to immediately postpone the implementation of this tariff increase.

“Sabah deserves better planning, better consultation and better governance,” he said in a statement.

Christopher also questioned the SESB’s decision to increase the tariff, which he described as hastily done and without providing adequate lead time for consumers and businesses to prepare.

“At the very least, the state Cabinet should have insisted on a reasonable transition period of no less than six months before any tariff adjustment took effect.

“This is particularly critical for small and medium enterprises (SMEs), especially those in the food and beverage sector, hawkers and micro-enterprises which are heavily dependent on electricity for cold storage, refrigeration and air-conditioning.

“These businesses require time to review pricing structures, absorb cost pressures and plan their cash flows,” he said.

He pointed out that electricity was a universal input cost and that even a marginal increase in tariffs has a cascading effect across the economy, much like increases in petrol or diesel prices.

“Poorly timed electricity hikes therefore carry a genuine risk of inflation, directly affecting both businesses and consumers,” he warned.

He also said that the decision comes at a particularly difficult time for Sabah’s business community, which is already burdened by high operating costs, multiple layers of taxation, weak domestic demand and low purchasing power among Sabahans.

“Unlike Selangor, Johor, Penang and Sarawak that have stronger and more resilient domestic economies, Sabah continues to grapple with structural economic fragility.

“This reality is reflected in weak business turnover and persistently low retail occupancy rates across many towns and cities in the state,” he said.

He added that any ill-timed or inadequately consulted policy decision affecting key investment enablers such as electricity tariffs risks undermining business sustainability, discouraging investment and weakening job creation.

“This development therefore raises a fundamental question of governance and accountability:
Was the state Cabinet, particularly the minister in charge, informed in advance of this tariff increase? If so, did the minister request a postponement to allow proper engagement with affected stakeholders? If not, this raises serious concerns regarding oversight and coordination.

“A responsible state Cabinet must prioritise the protection of Sabah’s domestic economy, particularly the SMEs, which form the backbone of employment and economic activity in the state,” said Christopher.

He also said that although the Gabungan Rakyat Sabah (GRS) administration may continue to highlight gross domestic product (GDP) figures and state revenues derived from commodity exports, petroleum-related taxes or interim payments under the 40 per cent entitlement, these figures do not reflect the economic reality of ordinary Sabahans.

According to the Department of Statistics Malaysia, Sabah recorded among the lowest labour productivity levels in Malaysia in 2024, at approximately RM84,039, he said.

“The prevalence of underemployment and misemployment further underscores the urgent need for carefully calibrated economic policies that strengthen, rather than strain, the domestic economy.”