Kota Kinabalu: The Federation of Sabah Industries (FSI) proposed full liberalisation of the route between Port Klang and KK Port as one of the measures to create a more conducive economic environment for small-medium entrepreneurs (SMEs) in Sabah.FSI President Datuk Mohd Basri Abd Gafar said the partial liberalisation currently implemented on the route is not sufficient and "the Minister has the power to liberalise the route.""We are asking for the Port Klang and KK Port route to be exempted from the Cabotage Policy," Mohd Basri said at a press conference here, Wednesday.
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He said the policy has affected FSI members where more than 90 per cent of its members are SMEs."As such, we believe that the SMEs in Sabah are unable to reach full potential in spite of the abundance of natural resources and strategic geographical location, and are inevitably left out of the regional trade value chain."Since Sabah is located the furthest from the centre of activity, it is the worst region in Malaysia affected by the Cabotage Policy…shipping line is our lifeline."He also said according to studies conducted by the Economic Planning Unit (EPU), the shipping cost in Sabah is RM800 million annually "and if you compare that figure with Sabah's expenditure budget, it is more or less the same."
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"Cabotage Policy does not bring benefit to the industry or the majority of the people in Sabah. Its protectionist nature has only benefited the ship owners."The policy is lopsided in favour of the peninsula and it is outdated and warrants a review. It also retards the industry's efficiency, competitiveness and development.
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"In echoing other trade chambers and associations in Sabah, FSI believes that the policy has directly or indirectly driven up the cost of living in Sabah," Mohd Basri said.As such, FSI proposed the establishment of a realistic timeframe for an eventual abolishment of Cabotage Policy."How long will the policy be implemented? We believe that all policies must have timeframes to see their effectiveness and also to conduct reviews on them."Mohd Basri said Sepanggar Bay Container Terminal (SCBT) should be designated as Malaysia's other transshipment hub to serve the Far East region where Load Equalisation Scheme can be initiated to channel designated goods bound for Port Klang to SBCT to facilitate the hub status."The Government should also introduce Freight Equalisation Scheme in the form of cost compensation for Sabah businesses and also establish a Logistics Council to monitor the cost structure and efficiency of shipping companies."Mohd Basri disclosed, to be more effective, FSI has also established a taskforce on Cabotage to be headed by FSI Honorary Life President Datuk Seri Wong Khen Thau."He is the right person for this position and they will conduct discussions with the stakeholders (on the issue)."Meanwhile, Wong refuted claims made by a certain local exporter, Richard Wong, published in a local newspaper on Tuesday.In the report, Richard claimed that the opposition and local non-governmental organisations (NGOs) are trying to demonise the Cabotage Policy and spreading rumours about the domestic industry which has resulted in 'myths' on the policy."There is no myth in FSI's stance or that of the opposition and NGOs on the Cabotage Policy issues. Instead, the claimant (Richard) had created the myths, judging by his statements."FSI has no reason whatsoever in demonising the Cabotage Policy as doing so would not benefit either its members or the people of Sabah," Wong said.Rather, according to Wong, as a representative of the industry, especially the manufacturers, FSI is one with their feelings and carries their industry grievances and voices across so as to be heard, and so that they can get the help needed, grow, expand and contribute to the State's socio-economic development."We wonder whether the claimant is a representative of the shipping companies or an exporter. Stay up-to-date by following Daily Express’s Telegram channel.
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