KUCHING: Higher logistics demands continue to drive cost differences between Sarawak and Peninsular Malaysia, particularly in fuel and goods pricing.
Deputy Minister of Natural Resources and Urban Development Datuk Len Talif Salleh said the state’s geographical size and reliance on diesel-powered transport contribute to the disparity.
“Well, if we look at it in terms of goods here, it’s expensive,” he said when met by reporters at the LCDA Sapphire Run 1.0 here today (Apr 5).
He said the higher cost of goods in Sarawak is closely linked to logistical challenges, which are not always fully understood by the public.
Len noted that while a cost-neutralisation mechanism is in place, prices on the ground remain affected by transportation and distribution factors.
“Because Sarawak is large and we use a lot of vehicles that run on diesel, the difference in costs between Peninsular Malaysia and Sarawak is understandable,” he said.
According to a report, diesel prices in Sabah and Sarawak remain subsidised at around RM2.15 per litre, lower than rates in Peninsular Malaysia, as part of efforts to offset higher living and transportation costs in the Borneo region.
The report highlighted that logistical challenges, including the state’s vast geography and infrastructure limitations in certain areas, contribute to higher operational costs and reliance on diesel-powered transport.
It also noted that transport costs to Sabah and Sarawak are higher compared to many regional trade routes, further impacting the pricing of goods.
Len said the pricing gap reflects the realities of operating in a geographically larger state where diesel remains a key fuel for mobility and economic activity.
