Sunday, April 13, 2025

Strengthen economic resilience amid US tariff pressures

Dennison Indang…reaffirmed UPKO’s commitment to working with all levels of government, industry stakeholders, and international partners to build an inclusive and resilient economic future for Sabah.

KOTA KINABALU : – The state government is urged to adopt proactive measures in response to the recent tariff hikes imposed by the United States on Malaysian exports.

United Progressive Kinabalu Organisation (UPKO) Treasurer-General Dennison R. Indang underscored the importance of economic preparedness at the state level, despite international trade matters being primarily under federal jurisdiction.

He noted that the new tariffs would likely have a significant impact on Sabah’s smallholders, including palm oil farmers, pepper growers, seafood processors, and rural small and medium-sized enterprises (SMEs).

“I strongly believes that Sabah must not remain passive in the face of external economic pressures,” Dennison said in a statement today.

“We need to take proactive steps to safeguard the livelihoods of our people and ensure that our economy remains resilient.”

To reinforce Sabah’s economic resilience, Dennison proposed diversifying export markets by strengthening trade relations with ASEAN countries, the Middle East, and Africa.

“We should leverage the advantage of regional trade agreements like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to gain wider market access,” he said.

He also called for a transition towards value-added production, encouraging the state to move beyond the export of raw materials by focusing on processed, packaged, and certified products that can command higher prices in international markets.

Dennison further stressed the importance of enhancing critical infrastructure, particularly in logistics, port facilities, and digital connectivity, to enable rural entrepreneurs to access new markets and boost their competitiveness.

“We must also establish a dedicated Sabah Trade Taskforce to ensure our interests are adequately represented in national trade negotiations.

“At the same time, we should strengthen the branding of Sabah products by highlighting our commitment to sustainability, hygiene, and cultural distinctiveness to enhance their appeal in global markets,”he said.

Furthermore, he emphasised the importance of attracting foreign investment into Sabah’s downstream industries to generate local employment opportunities and reduce dependency on raw commodity exports.

“The future of Sabah’s economy depends on its ability to adapt and reduce over-reliance on a single market. By fostering local value chains and empowering our people, we can position Sabah as a significant economic player in the region,” he said.

Dennison reaffirmed UPKO’s commitment to working with all levels of government, industry stakeholders, and international partners to build an inclusive and resilient economic future for Sabah.

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