Kota Kinabalu: SME Association of Sabah warned that Sabah’s small and medium enterprises are holding on, but mounting pressures from wages, logistics, competition and travel costs threaten their resilience.
In a representation to Deputy Chief Minister II and Finance Minister Datuk Seri Masidi Manjun, association president Dr Deledda Tan said businesses are battling a perfect storm of rising expenses that one-size-fits-all policies risk making worse.
“Sabah SMEs remain committed and resilient but resilience is not infinite,” Dr Tan said.
We are facing simultaneous pressures on every front: labour costs, logistics, online competition and air travel that is simply too expensive to sustain commerce,” he added.
While the association supports fair wages, it urged the government to calibrate the proposed RM3,100 minimum wage carefully and warning that smaller enterprises cannot absorb cost hikes the same way large corporations can.
Workers deserve better livelihoods … but businesses must survive to provide them, Dr Tan said.
“We need balance, not a burden that closes enterprises and cuts jobs.”Other urgent concerns raised include: Online competition — traditional retailers bear physical-store overheads while competing against platforms with far lower costs Fuel & transport — the 300-litre diesel subsidy is insufficient for businesses dependent on fleets Air connectivity — sky-high fares between Sabah and Peninsular Malaysia demand price-capping on key routes during peak periods Infrastructure gaps — port efficiency, supply-chain upgrades and commercial-area accessibility all need attentionThe association also called for greater backing in innovation, product certification and market expansion — so Sabah can showcase high-quality local goods especially as Visit Sabah 2027 approaches.
“We do not come merely to complain. “We come with practical solutions — because when SMEs thrive, Sabah prospers,” Dr Tan said.
