Malaysia allocates RM250 million to expand logistics subsidies for basic goods in remote Sabah and Sarawak

In the 2027 fiscal plan, the Malaysian government earmarked RM250 million to expand its logistics subsidy for essential commodities, targeting remote districts in Sabah and Sarawak. The expansion will introduce six new distribution centres, including locations in Penampang, Sabah and Pusa, Sarawak, building on an existing network that already covers 1,480 sites in the two states. UiTM Sabah economist Firdausi Suffian explained that difficult terrain and sparse transport links raise the cost of moving goods from the peninsula to interior villages, inflating retail prices.

By subsidising shipping, handling and inland transport, the program seeks to keep basic-goods prices affordable and works alongside cash-transfer programmes such as Tunai Rahmah and Asas Rahmah. However, Suffian questioned whether the unchanged RM250 million allocation will meet the added demand and urged investment in road upgrades, arguing that improved infrastructure would lessen dependence on subsidies and free funds for other social aid. Fellow UiTM academic Tan Peck Leong suggested monitoring price changes and ensuring retailer compliance, recommending cooperation with local traders and cooperatives to enhance supply.