KOTA KINABALU: The Sabah Timber Industries Association (STIA) has urged the government to reconsider its decision to increase the electricity tariff rate from January 1, 2014.
STIA secretary general Stephen Chaw said that in June this year, the association issued a statement and sought assistance from the relevant agencies and ministries to resolve the unending power supply problems faced by the timber industry in Sabah, particularly in Sandakan (Seguntor area).
He pointed out the east coast districts of Sabah are facing power disruption almost on a daily basis! The production cost of the wood-based industry in those districts is very high due to the insufficient and inefficient power supply.
“Until today, there is no light at the end of the tunnel and the relevant agencies and government departments have yet to propose an
amicable solution to the problems,” he said in a statement yesterday.
The electricity tariff in Sabah will be increased by five sen/kWh from 29.52sen/kWh to 34.52 sen/kWh.
STIA is disappointed that whilst there is no proposal to resolve the problems, the government has decided to increase the tariff which will
have great impact on the industry in Sabah, particularly during the crucial time of global economic slowdown.
The association opined that at least the basic problems in providing sufficient and constant supply must be addressed before any increase of tariff can be considered or implemented.
“It is a known fact that the cost of doing business in Sabah is higher than other States in Malaysia and yet there is no consideration extended to the industry here when the decision was finalized. The industry in Sabah will never be able to compete nor play on a level field with other states and shall remain to be one of the poorest and least developed states if nothing is done to help the industry,” said Stephen.
STIA is urging relevant agencies and ministries to look at the problems faced by the timber industry players in Sabah and extend the necessary support immediately.