Let's have 30 years no Cabotage
Published on: Wednesday, April 19, 2017
Kota Kinabalu: Since we have over 30 years of Cabotage experience, and it seems there is no clear winner except perhaps a few who have vested interests, why don't we try 30 years of non-Cabotage?Honorary Life President of the Federation of Sabah Industries (FSI), Datuk Wong Khen Thau (pic), made this suggestion in view of the Cabotage policy's adverse effects on Sabah industries and the price of goods."This is the area of concern that we have been arguing about for the last 16 years.
ADVERTISEMENT
Who is really reaping the benefits from this policy? That is the real issue that we have been debating. Actually, we have all the answers in FSI, but the authorities concerned are not really interested and we feel no point to continue the debate."We have sat down with the Chairman of Masa (Malaysia Shipowners' Association), Nordin, and we agreed not to confront each other wherever possible. The relevant authorities have all the information as much research has been done by all sectors concerned, and I have read hundreds of it," he said.Wong, who heads the FSI Committee on Cabotage Issues, was commenting on Sabah Ports Sdn Bjd Managing Director Ng Kiat Min's defence of the Cabotage policy for Malaysia since Jan. 1, 1980.
ADVERTISEMENT
Recently, she said the policy was created to establish the Malaysian shipping industry with four main objectives, that is, to build up domestic capacity and capability, to reduce dependency on foreign vessels, as a platform to enter into international shipping and to reduce outflow of foreign exchange."I don't deny that the policy looks noble and, in fact, it is designed to help the Malaysian shipping industry to grow.
ADVERTISEMENT
We are not challenging the policy per se. What we challenge is the unfairness, given the unfavourable effects of its implementation on Sabah industries and the people's livelihood, especially in terms of the high cost of doing business in Sabah," he pointed out.On Ng's contention that the policy has also been practised by many countries around the world such as Indonesia, USA, Australia, China and Japan, Wong said one must know why they still need it. "However, some like Europe have it abolished over the years and many others like China have liberalised it. We should also take note that many countries do not have this policy. There is no such thing as 'one size' for all."In this respect, we should examine whether the policy is really benefiting the majority of the people. There is always a remedy to any problem. Where there is a will, there is a way. It boils down to whether we have the sincerity to resolve it on a win-win basis, especially by the authorities concerned," he opined.For the benefit of the public, Ng had also clarified that foreign container vessels can call Sabah ports directly without having to call at Port Klang first. However, the Cabotage policy restricts these foreign-flagged vessels from transporting cargo from one domestic port to another domestic port in Malaysia. In other words, only Malaysian vessels are allowed to carry goods between two Malaysian ports.Wong said many may not be aware that most foreign vessels don't come to Sabah unlike Singapore which is visited by international liners. "One of the main reasons is of course the restriction – not being allowed to carry goods from one Malaysian port to another Malaysian port. So most foreign ships will just conveniently drop the goods at Port Klang and let the domestic ships do the rest of the job of distribution. Such practice invariably allows the monopoly of control businesses for the local shipping companies," he asserted. On the other hand, any shipment coming direct to Sabah will normally happen if the whole shipment of goods is Sabah-bound. "If not, the freight charges can be very high and even that for the full load bound for Sabah is still higher than to Port Klang due to inconsistent service to Sabah. Only very high-value products like timber, oil palm, oil and gas or live sea products can survive such sea freight."But the irony of the issue, Wong noted, is the shipping companies' claim that they are not making good profit and barely surviving and hence the shipping industry still needs the policy even after more than 30 years of its existence. Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
