Local businesses in Penampang are facing unexpected licensing fee hikes, adding financial strain as they try to recover from last year’s devastating floods.

The Majlis Perbandaran Penampang (MPP) has introduced new charges based on business premise size, pushing renewal costs up by RM300 for some businesses. Combined with other fees, the total cost now stands at RM365 annually—a significant jump from previous years.

Warisan deputy president Darell Leiking said the added cost comes at a time when businesses are still struggling to get back on their feet.

“Many businesses are still reeling from the floods, which caused major damage to properties, inventory, and infrastructure,” he said.

“On top of that, Sabah’s ongoing logistics issues are already making it expensive to run a business, and with the minimum wage rising to RM1,700 next month, costs are only going up.”

Beyond the new fees, businesses are also facing longer processing times for license renewals, with approvals now taking up to two weeks.

“Time is money for businesses. They can’t afford to wait weeks for something that should be straightforward,” Leiking said.

There are also concerns that if Penampang becomes too expensive, businesses will relocate to other districts, affecting local jobs and economic growth.

MPP has claimed businesses were notified about the new charges, but many say they only realized the increase upon renewal.

Leiking is now calling for a town hall meeting with MPP, the Ministry of Housing and Local Government Sabah, and key agencies like Jabatan Air, Jabatan Kerja Raya, and JANS to address business owners’ concerns.

“The local government should be making it easier for businesses to operate, not harder,” he said. – February 13, 2025.