Sepanggar free port status plan
Published on: Thursday, September 03, 2015
Kota Kinabalu: There is a possibility that Sepanggar Port may enjoy free port status as one way to address the price disparities between Sabah and peninsula brought about by the longstanding Cabotage policy, Daily Express can reveal.Transport Minister-cum-MCA President Datuk Seri Liow Tiong Lai is working to resolve the issue which entails the port becoming the second hub after Port Klang and involves spending some RM60 million to upgrade port facilities to meet new demands. The move follows a fact finding report submitted to the Ministry by the non-governmental bodies and agencies on the the Cabotage Policy and its impact on the higher cost of living in Sabah by up to 30pc.
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A free port enjoys relaxed jurisdiction of Customs or related national regulations for trans-shipment.According to Sabah MCA Deputy co-Chairman Datuk Francis Goh the allocation, which is pending approval from the Federal Government, would be used to improve the port's facilities. He, however, expressed reservations that the free port plan would be effective if the Cabotage policy is not also scrapped. While waiting for the allocation and proposal to materialise, Goh as the Sabah Housing and Real estate Developers Association (Shareda) President had also spoken of the negative impacts of the Cabotage Policy due to builders' dependency to imports of several construction materials such as iron bars.
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"So we will see whether the price of materials in Sabah will go down after that (free port status is granted)," he said. "They say Cabotage policy is not the main cause, if then I would like to ask then why is it that Sabah's building materials cost is more than in Kuala Lumpur?" asked Goh.
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Nevertheless, he thanked the Minister's interest in helping to address the price disparities in Sabah. Stay up-to-date by following Daily Express’s Telegram channel.
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