Following the recent changes to the diesel subsidy mechanism in Sabah, our transportation operating costs have increased significantly, particularly for outstation deliveries.

Although a subsidized diesel quota is provided, the allocated quantity is insufficient to support our daily transportation requirements. As a result, a substantial portion of our fuel consumption must be purchased at the commercial (non-subsidized) diesel price, leading to a considerable increase in operating expenses.

In addition to higher fuel costs, the increase has also indirectly affected other transportation-related expenses, including:

• Vehicle operating and maintenance costs

• Delivery and distribution expenses

• Fleet management costs

• Logistics and operational overheads

To ensure that we continue providing reliable, safe, and efficient transportation services without compromising service quality, we regret to inform you that a transportation rate adjustment for outstation deliveries will be implemented effective [ 1.7.2026 ].