KOTA KINABALU: A consumer group has called on the state government not to take over the running of Sabah Electricity (SE) if there is inadequate funding for it, to prevent destabilising the energy sector.
National Consumer Foundation Malaysia Sabah branch chairman David Chan said the Sabah government should not proceed with the takeover unless it is ready to meet SE’s financial needs and develop long-term sustainability plans.
“A takeover must be more than just a change in management; it requires substantial funding and a strategic vision to ensure the stability and improvement of Sabah’s power infrastructure.
“If the state government is not ready to invest the necessary capital to secure SE’s future, allowing Tenaga Nasional Bhd to continue managing the company may be the wiser choice,” Chan said in a statement yesterday.
Safety hazard: SE workers carefully removing illegal power connections during an operation in Kampung Numbak, Kota Kinabalu.
His remarks follow concerns from SE chairman Datuk Seri Wilfred Madius Tangau, who recently revealed the company’s fragile financial state.
He warned that it could face bankruptcy without federal subsidies and is currently sustaining a 10% operational loss.
Chan noted that SE’s slow progress in renewable energy adoption hampers its development.
“The implementation of large-scale solar projects, for instance, would diversify Sabah’s power sources, reduce dependency on costly fuels, and result in cheaper tariffs for consumers,” he added.
He urged the Sabah government to convene a roundtable discussion involving SE, key stakeholders and relevant authorities to create a strategy addressing its financial challenges, operational issues and the integration of renewable energy.
“Consumers and investors deserve clarity and confidence in Sabah’s energy sector, as reliable power supply and affordable tariffs are essential for economic growth and the well-being of all Sabahans,” he said.
During the debate on the Supply Bill 2025 at the Dewan Rakyat recently, Tangau disclosed that SE would face bankruptcy without government subsidies.
