June 15, 2009

NST

Federation hopes cabotage policy will be eased further

The liberalisation of the cabotage shipping policy, while hailed as a breakthrough, needs to be further relaxed if consumers, and the community at large, are to reap any benefits.

 
The Federation of Sabah Manufacturers (FSM) president Datuk Wong Khen Thau said the relaxation of the policy was a step in the right direction, but is hoping for further moves that will significantly benefit the industry and the economy in Sabah.

 
Under a relaxation of the cabotage policy, foreign vessels are now allowed to carry containerised transshipment cargo from abroad, between five ports in the country - Sepangar Bay, Bintulu, Klang, Kuching and Tanjung Pelepas.

 
The restriction against foreign vessels plying between Malaysian ports had been one of the main excuses for higher cost of properties and imported consumer goods in the state.

 
Wong said FSM is also proposing to make Sepanggar Bay Port a major hub
in the region, and getting the Sabah Foundation to run a container service specifically to ply the Peninsular Malaysia and Sabah route.

 
Both proposals will be able to bring more cargo and vessels in, indirectly lowering the price of consumer goods.

 
"We are also suggesting to set up a body to look into the transparency of freight charges, which are quite high, and set up a mechanism to set a fixed priced," Wong told reporters after a meeting with industry players in Kota Kinabalu last week.

 
"Perhaps, the government can also look into matching grant and subsidies for Sabah and Sarawak so that the local industry can compete with international counterparts or at least catch up with them," he added.

 
He said that all the proposals are in line with bringing the cost of goods down for Sabah and the One Price concept nationwide.

 
He also called on the government to fully abolish the 30-year cabotage
policy.

    
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