KUCHING: The federal government must maintain the RON95 petrol subsidy at RM1.99 per litre and the diesel ceiling price of RM2.15 per litre in Sarawak to shield consumers from rising living costs amid the escalating conflict in the Middle East.
Sarawak United People’s Party (SUPP) Stakan’s chairman, Datuk Sim Kiang Chiok, said removing the price cap on RON95, which currently stands well below the estimated market price of about RM3.27 per litre, would trigger an immediate spike in living expenses.
“Maintaining the diesel ceiling price in Sarawak is equally crucial given the state’s geographical challenges and reliance on fuel for transportation, logistics and agricultural activities, particularly in rural areas,” he said in a statement.
He also warned that the conflict could have wider economic repercussions for Malaysia if it drags on for months or even years.
According to Sim, Malaysia may see short-term gains from higher global oil and gas prices, but these could be offset by cost-push inflation affecting domestic industries.
“The electrical and electronic (E&E) sector, a key pillar of Malaysia’s and Sarawak’s industrial growth, is already experiencing shipment delays and rising raw material costs,” he said.
“Logistics providers are also facing higher operating costs due to increased fuel prices and soaring maritime insurance, while the aviation sector is under pressure as fuel surcharges and rerouted flight paths push airline fares higher.”
He added that such developments could also affect Sarawak’s connectivity and tourism prospects ahead of Visit Malaysia 2026.
He further cautioned that a prolonged conflict could result in sustained inflationary pressure in the country.
“Although Bank Negara Malaysia has kept the interest rate at 2.75 per cent for now, a prolonged conflict could force a rate hike to stabilise the ringgit, which may further burden small businesses and mortgage holders,” he opined.
Sim also called on global powers, including the United States, to mediate an immediate resolution to the conflict to prevent a prolonged war that could trigger a global recession and disrupt international trade.
