‘Not all goods in Sarawak, Sabah pricier than those in peninsula’

Not all goods sold in Sarawak and Sabah are more expensive than those sold in Peninsular Malaysia, says Minister of Domestic Trade and Consumer Affairs Datuk Seri Alexander Nanta Linggi.

In a statement issued Thursday, he said an analysis of prices showed that basket values for fresh fish, fresh seafood, as well as liquid or condensed milk in Sarawak and Sabah were cheaper than those in the peninsula.

“Sabah also records cheaper basket values for other products made from grains, fresh meat, fresh and re-mixed milk, fresh vegetables, potatoes, and sweet potatoes, than those in the peninsula. Sarawak, on the other hand, shows cheaper basket values for coconuts and beans and dried/pickled vegetables than those in the peninsula.

“Based on this analysis, Sarawak, Sabah, and the peninsula do not show a significant price difference as the baskets in Sabah and Sarawak are offset by cheaper goods compared to the peninsula.

“Therefore, all consumers should take this opportunity to practise smarter spending,” he added.

The December 2020 Consumer Price Index (CPI) report showed that both regions did not record high average price — with Sarawak in sixth place, while Sabah was at 15th place in terms of basket price values.

Nanta said transportation costs had been identified as the main factor that affected the difference in prices for necessities not originating from or processed in Sarawak or Sabah.

Other factors contributing to the price imbalance between Peninsular Malaysia, Sarawak, and Sabah were poor distribution channels, port inefficiency, high handling charges, and inefficient ground transportation, he said.

As such, he said the government had implemented initiatives such as the ‘Sarawak, Sabah, and Labuan Price Standardisation Programme’ (Port to Port) and the ‘Essential Goods, LPG, and Community Drumming Distribution Programme’, aimed at standardising prices in Sarawak and Sabah.

He said the government had also implemented ‘Cabotage Policy’ exemptions in Sarawak and Sabah to reduce shipping costs.

“Currently, the government is studying new mechanisms such as creating agro-food hubs in Sarawak and Sabah as one of efforts to overcome the problem of price differences in the two states.

“I think this idea should be focused on, taking into account the advantages of Sarawak and Sabah, which have large areas to implement the agro-food hub project,” said Nanta.

In addition, he said efforts to improve the e-commerce platform and improve last-mile connectivity for communications and transportation could also reduce the price gap between the peninsula and Sarawak, Sabah, and Labuan, as well as reduce the cost of living in these three areas.