TANJUNG ARU Assemblyman Datuk Junz Wong urged the government to consider its economic policies and focus on supporting local small and medium enterprises (SMEs).
He called for the removal of what he termed “oppressive policies,” such as export taxes on downstream fisheries, fish farms and scrap metal.
“Without changes, Sabah risks becoming a ‘failed State’ economically,” he said when debating the Supplementary Budget Bill, here, Tuesday.
He said data from the Department of Statistics Malaysia paints a troubling picture of Sabah’s economic situation.
SPONSORED CONTENT Shell awards Sabah LiveWIRE winners Kota Kinabalu: Shell has awarded five enterprises as the state winners of Shell LiveWIRE Malaysia 2024, following the Sabah state finals held at Plaza Shell in Kota Kinabalu. . Read more “The State’s GDP in 2023 remains below 2019 levels, making Sabah the only State or territory in Malaysia that has failed to recover to pre-pandemic economic output.
“While the national average GDP growth stood at a positive 3.6 per cent, Sabah managed only a 1.3 per cent increase.
This puts Sabah behind even states like Perlis, Kelantan and Pahang, which recorded growth rates of 2.1 per cent, 2.6 per cent and 5.2 per cent, respectively,” he said.
He claimed the Gabungan Rakyat Sabah (GRS) government failed to implement effective policies to aid SMEs and revitalise the business community.
He cited a report from the Sabah Employment Association that 32 per cent of employers in Sabah have shut down operations since 2019.
“The number of registered companies fell from 46,300 in 2019 to just 34,900 in 2022, representing a loss of 11,395 businesses,” he said.
He also expressed concern over the state’s employment situation saying out of Sabah’s 1.9 million-strong workforce, only 480,000 contribute to the Employees Provident Fund (EPF) or Social Security Organisation (Socso).
“An estimated 700,000 are foreign workers, 100,000 are public servants and 165,000 are unemployed. This leaves roughly half a million Sabahans relying on informal economic activities for their daily survival, with no guarantee of stable income or future security,” he said.
He also questioned the government’s handling of foreign investments, particularly those from companies like SK and Kibing.
He alleged that these investors might be receiving preferential treatment, including subsidised electricity rates and guaranteed uninterrupted power and water supply, at the expense of local businesses and residents.
He called for transparency on these matters and questioned whether such policies were benefiting Sabahans or merely supporting foreign corporations.
Infrastructure challenges were also highlighted, with Wong pointing to severe congestion at Sabah’s ports.
He claimed that SK and Kibing’s operations monopolised port facilities, leading to delays of up to two months for cargo clearance, compared to the previous three-week standard.
“These delays are driving up costs for local businesses and contributing to higher prices for goods in Sabah, which are already 30 per cent more expensive than in Peninsular Malaysia,” he said.
Wong also criticized the GRS-PH government’s approach to labour law reforms, arguing that Sabah should have more control over its labour policies rather than referring to federal agencies.
He was concerned that Sabah’s employers might face stricter implementation of new labour laws compared to their counterparts in the peninsula, despite the state’s challenging economic conditions.
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