Sandakan Forwarders Raise Concerns Over Fuel Price Hikes and Global Uncertainty

5 March 2026

SANDAKAN: The Sandakan Forwarders Association has voiced concern over the ongoing conflict in the Middle East and the recent rise in petrol and diesel prices in Peninsular Malaysia, warning of potential ripple effects on Sabah’s economy.

Its Chairman, Chong Thien Ming, who is also Deputy Chairman of the Sandakan Hire Lorry Transport Association, said that although diesel prices in Sabah remain at RM2.15 per litre, the broader implications of rising fuel costs elsewhere are unavoidable.

“A significant portion of goods in Sabah, including building materials, agricultural products and food supplies, are imported from West Malaysia. Any increase in fuel prices there will inevitably drive up costs here,” he said.

Chong explained that higher fuel prices would lead to increased freight charges, as vessel operators face rising diesel costs when transporting goods to Sabah.

“Suppliers will have no choice but to raise prices, and delivery costs will also increase accordingly,” he added.

He noted that once goods or containers are declared and delivered to customers, the increased transportation costs would be reflected in overall pricing.

Forwarding agencies, he said, may also be compelled to impose additional charges, including fuel surcharges for documentation and logistics services.

“This situation is unavoidable given the current market uncertainties,” he stressed.

Chong urged the government to intervene, particularly in stabilising fuel prices for the service sector, to help small and medium enterprises (SMEs) cope with the challenging economic climate.

He also called for the implementation of the Speed Limiting Device (SLD) requirement in Sabah to be deferred for at least two years, citing concerns over additional financial burden on industry players.

“The cost of installing SLD ranges between RM1,700 and RM2,000 per unit. Making it mandatory at this time will place further strain on vehicle owners who are already struggling,” he said.

In addition, Chong suggested that the Ministry of Transport conduct a comprehensive study on road conditions in Sabah before enforcing such measures, noting that the Pan Borneo Highway project is still ongoing and may take several more years to complete.

Looking ahead, he warned that prices of spare parts, consumer goods and services are likely to rise sharply in the coming months, potentially leading to market instability.

“Many SMEs will be affected, and we may see shifts in the workforce as businesses adjust to rising costs,” he said.

Chong expressed hope that the government would introduce targeted policies and support measures to help the business community weather a potential economic downturn.