By DayakDaily Team
KUCHING, March 12: The federal government has been urged to maintain fuel subsidies, keeping RON95 petrol at RM1.99 per litre and Sarawak’s diesel ceiling at RM2.15 as rising fuel costs could destabilise Malaysia’s economy and threaten the livelihoods of Sarawakians.
Sarawak Housing And Real Estate Developers’ Association (Sheda) advisor Dato Sim Kiang Chiok said the esclating conflict in the Middle East, while boosting oil and gas revenues for Malaysia, is already causing “cost-push” inflation that could severely impact domestic industries if not managed carefully.
“Supply chain disruptions are already evident. Sarawak’s electrical and electronic (E&E) sector is facing shipment delays and surging raw material costs, while logistics providers confront rising fuel prices and maritime insurance premiums.
“Even the aviation sector is under strain, with higher fuel surcharges and rerouted flight paths pushing up airline fares, directly affecting connectivity and Sarawak’s tourism ambitions for Visit Malaysia Year 2026,” he said in a statement today.
He warned that a prolonged conflict could trigger sustained inflation, potentially forcing Bank Negara Malaysia to raise interest rates from the current 2.75 per cent, which would further squeeze small businesses and mortgage holders.
To protect consumers and local industries, Sim urged the government to maintain existing subsidy structures by holding RON95 at RM1.99 per litre for all eligible Malaysians and keeping Sarawak’s subsidised diesel at RM2.15 per litre.
“Given our unique geography, any move to float diesel prices would be catastrophic for Sarawakian farmers, logisticians, and rural communities,” he cautioned.
On the international stage, Sim also called for global powers, particularly the USA, to mediate an immediate resolution to the Middle East hostilities.
“The world cannot afford a multi-year war. A swift end to hostilities is the only way to prevent a global recession and restore the stable flow of trade that Sarawak’s economy depends upon,” he said. — DayakDaily
