EXAMINING THE POST-COVID-19 COST OF LIVING SURGE IN TAWAU, SABAH, MALAYSIA

Abstract

This study aims to identify the factors influencing the increase in consumers’ cost of living in Tawau, Sabah, after the COVID-19 pandemic era. The study involved 300 respondents selected using simple random sampling techniques. Data were collected through an online questionnaire covering three independent variables: the increase in raw material prices, the excess demand for goods and services in the market, and the increase in production costs. Data analysis was conducted using Pearson correlation and multiple linear regression methods through SPSS version 25. The findings show that the most dominant factor identified is the increase in production costs, followed by the increase in raw material prices and the increase in demand and production of goods and services in the market. The R² value = .461, indicating that 46.1% of the variance in the increase in the cost of living can be explained by the combination of all independent variables. These findings accentuate the need for price control strategies, supply chain management, and more effective economic policies to reduce the burden of consumers’ cost of living in the study area. This study provides important insights for public policy and contributes to the academic literature related to post-pandemic economic issues.