Economists say transport subsidies help reduce the cost of supplying essential goods, but want the government to ensure the savings reach consumers. (Bernama pic)PETALING JAYA: Logistics subsidies are crucial to keeping essential goods affordable for residents in the interior areas of Sabah and Sarawak, where transport and distribution costs are high, economists say.
Universiti Teknologi Mara (UiTM) Sabah economist Firdausi Suffian said geographical challenges and limited transport links made delivering goods to interior areas in the two East Malaysian regions more difficult and expensive.
“When we bring in goods from the peninsula, there are shipping, handling and transport costs, as well as additional logistics costs to deliver them to the interior.
