By Dayangku Hidayatul
KUCHING, July 10: The Sarawak Bumiputera Entrepreneurs Chamber (DUBS), Dayak Chamber of Commerce and Industry (DCCI), and Sarawak Malay Contractors Association (PKMM) have questioned recent increases in construction material prices, urging suppliers to be more transparent and calling for a fairer implementation of the diesel subsidy rationalisation to protect contractors and businesses in Sarawak.
The groups said suppliers should clearly explain the actual factors behind price increases instead of attributing them solely to the removal of diesel subsidies.
Reading a joint statement at a press conference today, DUBS information chief Hadzman Johny said businesses recognised the challenges faced by suppliers amid increasing costs and understood the need for price reviews.
However, he emphasised that suppliers must provide clear justification for any price adjustments to maintain confidence among industry players.
Hadzman pointed out that the impact of the diesel subsidy rationalisation varies depending on a company’s operations and eligibility under the Subsidised Diesel Control System (SKDS).
According to the statement, ready-mixed concrete mixer trucks are generally built on rigid truck chassis, a vehicle category considered eligible for the SKDS Fleet Card Scheme, subject to approval by the Ministry of Domestic Trade and Cost of Living (KPDN).
“If these vehicles continue to receive subsidised diesel, it is reasonable for contractors, developers, and industry stakeholders to seek clarification on how much increased fuel costs have actually contributed to the announced price adjustments,” the statement said.
The organisations added that if the price increases are driven by other factors, including labour, maintenance, spare parts, insurance, financing, logistics, compliance costs or inflation, suppliers should communicate this openly instead of citing diesel subsidy removal alone.
They also highlighted the challenges faced by contractors, particularly those carrying out the Rural Transformation Programme (RTP) and other fixed-price government projects, who are bearing increased fuel and operating costs following the subsidy reforms, without corresponding adjustments to their contracts.
Therefore, DUBS, DCCI, and PKMM urged the government to reassess SKDS diesel quotas for businesses operating in remote areas and consider cost adjustments for affected ongoing projects.
The organisations reiterated that they are not rejecting subsidy reforms or commercial decisions, but want greater transparency and fairness in their implementation.
Also present were DUBS vice president Gabriel Kajeh Menggu, PKMM Malaysia vice president Dato Ismail Suut, DCCI deputy president Kilat Beriak, DUBS honorary treasurer Abang Ishak Ahmad, DUBS general secretary Jezamine Dior, PKMM Kuching Branch committee member Muhammad Asri Boom, and DUBS staff. — DayakDaily
