{
  "id": 15523490,
  "title": "Logistics subsidies keep essentials affordable in Sabah, S’wak, say economists",
  "url": "https://urgent.news/2026/10/18/logistics-subsidies-keep-essentials-affordable-in-sabah-swak-say-15523490",
  "topic": "world",
  "section": "World",
  "published": "2026-10-18T23:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/nation/2026/10/19/logistics-subsidies-keep-essentials-affordable-in-sabah-s-wak-say-economists"
  },
  "original_language": "en",
  "account": "Economists stress that transport subsidies play a vital role in keeping essential supplies inexpensive for people living in rural regions of Sabah and Sarawak, where logistical costs are elevated. Universiti Teknologi Mara (UiTM) Sabah scholar Firdausi Suffian pointed out that the terrain and scant transport infrastructure make it costlier to deliver goods to the interior. Transport, handling, and delivery expenses all contribute to higher product prices. The 2027 budget earmarked RM250 million for the expansion of essential goods distribution to rural areas, benefiting six new locations such as Kampung Terian in Penampang, Sabah, and Kampung Dato’ Godam in Pusa, Sarawak. The domestic trade and cost of living ministry had originally earmarked 1,570 sales outlets for the program, with 1,480 located in Sabah and Sarawak. The program also received RM250 million in 2026. Firdausi believes logistics subsidies, combined with other aid like STR and SARA, assist in keeping necessities affordable while bolstering consumer purchasing power. Reducing transportation and distribution expenses lessens the financial strain on consumers, bolstering the government's efforts to mitigate rising living costs. However, Firdausi questioned whether the RM250 million allocation would suffice with the program's expansion to six new locations. He also highlighted the necessity of enhancing roads and transport links to ease the delivery of goods to remote regions. Firdausi cautioned that subsidies should not replace the need for improved infrastructure. UiTM's Tan Peck Leong emphasized that the program's effectiveness should be determined by the prices at which goods are available in target areas, rather than just the allocated funds. He stated that the subsidies are effective only if consumers benefit from the savings. Tan proposed that the ministry publish price comparisons before and after implementation, particularly at the six newly added locations, and urged collaboration between the government, retailers, wholesalers, cooperatives, and village shops to optimize existing distribution channels. \"Residents in the interior areas of Sabah and Sarawak should not have to bear a disproportionately high cost for basic necessities due to their location,\" he concluded.",
  "summary": "Economists say distribution support is vital for interior communities, but implementation and infrastructure improvements must go hand in hand.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "Logistics subsidies keep essentials affordable in Sabah, S’wak, say economists",
        "url": "https://urgent.news/2026/10/18/logistics-subsidies-keep-essentials-affordable-in-sabah-swak-say",
        "published": "2026-10-18T23:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}