PENAMPANG: The Parti Warisan Penampang Division urged Chief Minister Datuk Seri Panglima Hajiji Noor to call on the Penampang Municipal Council’s (MPP) to review its controversial licensing fee similar to his advice to City Hall recently..
Following a public petition drive across key commercial hubs like Donggongon and Bandar Baru Penampang, Warisan Deputy Chief Christopher Masudal said the proposed floor-area-based fee structure threatens to crush local businesses already buckling under financial strain.
“We thank the Chief Minister for his swift intervention over DBKK’s plan to introduce new fees for business signboards within its jurisdiction.
“We hope he will also show the same concern over the MPP plan to impose revised business licence fees on operators in Penampang,” he said in a statement.
Masudal welcomed Hajiji’s recognition of the challenges faced by businesses in Kota Kinabalu amid slowing economic activity and rising operating costs, but questioned why similar concern had not been extended to business operators in Penampang.
“On March this year, our Kapayan Assemblyman Chin Tek Ming, raised concerns and called on the State Government to suspend the implementation of the Uniform (Licensing of Premises for Commercial, Trade, Industrial and Professional Purposes) By-Laws 2022 in order to ease the burden on local businesses.
“To my understanding, MPP is using the same by-laws to implement a revised business licence fee structure for business premises in Penampang with the fees calculated based on the floor area of the premises.
“Following this, Warisan Penampang organised a petition drive at commercial areas in Penampang, including Bandar Baru Penampang, Donggongon New Township, Beverly Hills and Millennium Plaza, among others,” he said.
Warisan’s grassroots walkabouts across commercial hubs revealed unanimous local opposition, with not a single business operator backing the proposed fee hike.
Instead, traders sounded the alarm over mounting financial strain, prompting Chin to formally deliver a petition and memorandum to State Minister of Local Government and Housing Datuk Mohd Arifin Mohd Arif.
“The feedback we received during the petition drive was clear. Many business operators were unhappy with what they viewed as a lack of empathy and understanding from the State Government at a time when businesses are already struggling with a sluggish economy and weak purchasing power in areas such as Penampang,” he added.
Masudal said, many of these business operators are already dealing with additional pressures arising from e-invoicing, fuel-related cost increases, irregular water and electricity supplies and rising raw-material costs, particularly those in the food and beverage sector.
“My primary concern, however, is that the additional business licence fee, when compounded by these existing pressures, could eventually affect employment opportunities and wage growth in Penampang.
“Businesses operating from larger premises, such as restaurants, warehouses and supermarkets may face significantly higher costs if fees are calculated according to floor area. This could make operators more cautious about hiring new workers, particularly young people entering the workforce, while also putting pressure on wage growth,” he said.
This according to him could directly affect local Penampang youths and young families who depend on employment in these businesses for their livelihoods.
Masudal also urged Hajiji to act immediately and instruct the Minister of Local Government and Housing to intervene on the proposed fee structure for business operators in Penampang.
He said, the State Government and MPP exist to serve the people of Penampang, including the business operators who work day and night to sustain their businesses, support their families and provide employment to thousands of local people.
Masudal reminded that, at a time when businesses are already facing multiple cost pressures, imposing additional financial burdens without sufficient consideration of the prevailing economic conditions could have serious consequences for both businesses and workers.
“I therefore urge Hajiji to show the same urgency and commitment that he demonstrated in responding to DBKK’s proposed signboard fees and to direct the relevant authorities to review the proposed business licence fee structure in Penampang,” he concluded.
