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Barter trade via the land
Published on: Saturday, April 23, 2016
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Barter trade via the land
Kota Kinabalu: Although a temporary freeze on barter trade is still in place, Sabah businesses should not stop trading with their neighbouring counterparts in Indonesia and the Philippines. Urban Wellbeing, Local Government and Housing Minister Datuk Abdul Rahman Dahlan (pic) suggested a fresh angle in terms of regional trade – by road.

Aware that the ferry services between Sabah's Kudat and the Philippines' Palawan that was slated to start on May 1 is now postponed due to the freeze, he diverted the attention to a barter trade post in Long Pasia, which is accessible by road, with half of the journey involving timber road, linking to East Kalimantan.

"It was unfortunate for the barter trade (to be suspended). Although I do not want to go against the State Government decision, I don't want trade to suffer because of security issues.

"I agree that we should be concerned about this (security issues), but we still have a lot people in Kalimantan who have money, speak our language and culture almost the same as ours.

"So while we continue to worry about security, we should not deprive the possibilities of having trade with them (Indonesians)," he said after chairing the Bumiputera Economic Council meeting, here, Monday.

The meeting was an extension of a similar meeting chaired by the Prime Minister Datuk Seri Najib Tun Razak in Putrajaya the same day.

Citing that Sabahans could be sceptical about doing business over fears of the State's foreign migrant problems, he stressed that they should not dismiss the potentials of doing trade, business and investments with them.

He said instead the idea of looking for investments in Indonesia's Kalimantan was more practical, than having the need to travel abroad to countries like China, Europe or India to strike new deals.

Abdul Rahman, who took note of Long Pasia after hearing a briefing from an officer from the Sabah Economic Development and Investment Authority (Sedia), said the Bumiputera Economic Council fully supports the State Government's intention to have a 40km road built to link the borders of Sabah and East Kalimantan.

It is understood that Sedia had earlier proposed several road links to East Kalimantan, but Abdul Rahman referred specifically to a 40km road link, which needs to be built to connectbuilt along the borderSabah borders.

According to him, a road link was much easier for the authorities to secure and control border entries and was unlike the sea where ships could possibly come in numerous directions.

While Indonesia has already built on its side the needed road to link to the border and was also keen to start trade with Malaysians, he said it is now up to Malaysia to make the road on its side of the border.

"We (Bumiputera Economic Council) are suggesting to the State Government to position itself to benefit from this economic progress of East Kalimantan.

"We want to have access to this big market to allow Sabahans to generate competitive products and services into this wider market," he said.

Towards this end, Abdul Rahman said he would bring this matter to the Federal Cabinet and hoped its construction can be prioritised and meet the ideals of the State Government.

"Although there is a security concern, we need to have this road for economic purposes. On the Malaysian side, it doesn't necessarily be a government funded road. It can also can be a privatised road and toll have to be paid," he said.

On another note, he said a total of RM98 million has been approved to 40 Sabah companies under the Teraju Facilitation Fund for specific projects, adding that the combined investments of these companies have peaked at RM866 million.

He said another RM10 million was approved under the Teras programme for capital funding of 10 companies, while 44 companies were also approved funds under the same programme.





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