KUCHING: The Sarawak Government is closely monitoring the construction sector as rising diesel prices begin to drive up operational cost.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said while there is currently no conclusive data indicating a decline in business demand, early indications suggest that certain sectors are beginning to feel the strain of escalating fuel prices, with construction among the most affected.
He said the sector’s dependence on diesel for transportation, heavy machinery, and construction materials such as tar and bitumen have made it particularly vulnerable to global fuel price volatility.
“We are watching the situation, especially in the construction sector where contractors rely heavily on diesel-powered vehicles and machinery. If there are signs of impact, we will consider further assistance,” he said during a press conference after chairing the State Cabinet Meeting at the Satria Pertiwi Complex today (April 16).
Abang Johari said other sectors are not entirely spared but impact varies in scale.
He said the agriculture sector is also affected due to rising fertiliser costs but Sarawak has taken steps to mitigate such challenges through innovations.
“This is why we are converting oil palm wastes into organic fertiliser. This helps us reduce reliance on imported fertilisers, manage rising costs, and at the same time support sustainable agriculture,” he said.
On the question of whether additional assistance similar to previous initiatives such as ‘Bantuan Khas Sarawakku Sayang’ (BKSS) would be introduced, Abang Johari said the state government has already put in place targeted support measures, including rental relief for businesses.
He stressed that the government is taking a measured approach, balancing immediate assistance with ongoing monitoring of economic conditions.
“That is why we have introduced rental discounts to help reduce operating costs. If businesses are affected and demand declines, we will look into it. There may be other packages. At the moment, there is no data indicating such a situation,” he said.
At the same time, Abang Johari said the state will continue to engage closely with business chambers and industry stakeholders to obtain real-time feedback and ensure timely intervention where necessary.
He stressed that the state government remains committed to protecting both businesses and the rakyat amid ongoing geopolitical uncertainties, particularly those affecting global energy and commodity markets.
“The important thing is to ensure that essential goods and food supplies remain available and stable,” he said.
