Logistics cost increase not main factor in soaring price of goods, construction, says Transport Minister

Lukanisman speaks during a Parliament session. Photo credit: Ukas

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KUCHING, July 26: The increase in logistics costs is not the main factor in the increase in construction costs and the price of goods in Sabah and Sarawak, says Transport Minister Datuk Seri Wee Ka Siong.

According to a report by Sarawak Public Communications Unit (Ukas), he said the increase in the cost of shipping containers is a reality that occurs all over the world and Malaysia is no exception.

“This happened as a result of the Covid-19 pandemic which has affected the entire supply chain, not only in Sabah and Sarawak but all over the world,” he said in a written reply in response to a question from Sibuti MP Lukanisman Awang Sauni in Parliament yesterday (July 25).

Previously, Lukanisman asked about logistics costs, especially in shipping containers, which has been cited as the reason for the increase in construction costs and the sudden rise in the price of goods in Sarawak and Sabah.

Following this, the ministry’s review showed that shipping cost is equal to RM1,318 for a 20-foot container (1 TEU) and RM2,526 for a 40-foot container (2 TEU), which is a 35 per cent increase overall.

Wee explained that the ministry has taken steps with port operators to reduce transport costs.

Among the steps are giving waivers to late gate in charges and replanning fees to port users, solving the issue of labour shortage due to Covid-19, and improving port management efficiency to reduce vessel turnaround time. — DayakDaily