Daily Express
INDEPENDENT NATIONAL NEWSPAPER OF EAST MALAYSIA
Established since 1963
  • Last Updated: Tuesday, 31 August, 2010
FSM dares shipping firms: Prove Cabotage Policy benefited Sabah

Published on: Tuesday, July 20, 2010

FSM also welcomed the statement by Prime Minister Datuk Seri Najib Tun Razak to review the Cabotage Policy that has been blamed for the high cost of goods in Sabah.

He said the PM's statement was timely to the organisation's request for the policy to be liberalised because it did not benefit the domestic shipping lines. Najib on Sunday said the Federal Government is willing to look into the problems faced by the business community in Sabah.

He said that it makes sense to export directly from Sabah but added he would have to study the implications.

Wong, on the other hand, said the Cabotage Policy was long-standing issue.

"But we hope for the best (that it would be liberalised or scrapped)," he said.

He pointed out that Sabah's contribution to the country has been quite significant and that if the Cabotage Policy issue was not settled, it would dampen efforts to attract investors to Sabah.

He said despite the policy has been partially liberalised, it has not brought about the benefit the FSM has envisioned.

Wong also clarified the Malaysian Shipping Association (Masa) statement accusing the FSM that a study on the high cost of shipping in Sabah as being sanctioned by the Malaysia Investment Development Authority (Mida).

He said Masa was putting words into FSM's mouth and that the statement was totally irresponsible.

He said Masa blaming the FSM as irrational and sensationalising the issues was unacceptable because the FSM was merely telling the truth and was done in the interests of Sabahans.

He challenged the national body to ask anyone in Sabah whether they have benefited from the Cabotage Policy.

Wong said the FSM had nothing against the Cabotage Policy just as long as it is was only applied within the peninsula states. "What we want is only for the policy to be fully liberalised," he said.

Wong said by scrapping the Cabotage Policy, it would enable shipping lines in Sabah to compete in a fair environment.

"Presently, the shipping industry in Sabah could not progress because it could not compete."

The manufacturing industry in Sabah, he said, was also not exempted from income tax unlike shipping lines in the peninsula.

And yet, he said the peninsula shipping lines still receive full support from the Government.

"A few companies in Sabah have gone bankrupt because of the Cabotage Policy.

We do not want to make things difficult for anyone but just want the government to look into it."

The FSM is responding to the Cabotage Policy Wong said for the sake of its members and also to ensure the Sabah industry survives.