Transfer subsidy to Labuan goods importers: LCC
Published on: Thursday, December 25, 2014
LABUAN: The 50 per cent discount given to commercial vehicle owners using roll on-roll off (ro-ro) ferries to deliver goods here from mainland should be withdrawn and instead transferred to importers of such goods here upon presentation of verified documents, said Labuan Consumer Council (LCC) Chairman Fauziah Datuk Din. "Only this will result in the targeted group benefiting from the government subsidy," she said. She said this at a meeting held here recently to decide on whether to continue the fare subsidy. ADVERTISEMENT The discount, implemented in January this year by the Federal Territories (FT) Ministry, has failed to produce the desired result of curbing the rising costs of goods and foodstuff.The subsidy, which was tabled under Budget 2013, amounted to RM17.5 million. Apart from commercial vehicles, Malaysian passengers using ferry/boat services for connections to Kota Kinabalu, Menumbok, Sipitang, Limbang and Lawas also enjoy the subsidy.Fauziah said: "It makes little sense to continue the subsidy since the targeted group such as consumers and importers are not widely benefiting from it. In short, the subsidy has not helped lower the costs of goods."Citing an example, Fauziah referred to a complaint the Council received. ADVERTISEMENT She said "despite the subsidy a cooking gas distributor charges RM3 for delivery of a 10kg gas cylinder in town area." "For three cylinders, it is RM9. This is exorbitant. If there is a delivery charge, it should be a fair amount and limited to a single charge. The charge of RM3 per cylinder is reflected in the sales invoice of the distributor under the item "Kos Pengangkutan KK-LN" (KK-Labuan transportation costs)," she said. "Other items are also imported from KK but no such charges were shown on bill," she added.
ADVERTISEMENT
Fauziah said it was a matter for the Domestic Trade office to clarify or rectify.Fauziah noted that even a recent study conducted by the Domestic Trade Ministry showed the prices of 96 wet items sold here were higher than in Kuala Lumpur, Putrajaya or Kota Kinabalu, meaning the subsidy had not been effective in producing desired result.However, Fazuiah stressed that if the subsidy were to be continued, it should be extended to only commercial vehicles that carry essential goods to Labuan such as controlled items, foodstuff including cooking gas and not for all goods carried by commercial vehicles. She said those in the oil and gas sectors are involved in a lucrative business and do not deserve transportation subsidy.Regarding the subsidy for passengers, Fauziah said this should be continued as most of the passengers using ferries/boats were from the middle or low-income group and fully deserved to be supported. She said since the discount was initiated, there had been an influx of visitors from the mainland."Some came by the morning ferry and left in the evening with their luggage stuffed with duty-free items which helped to offset travel cost of the family," noted Fauziah.The meeting to review the subsidy was held by Labuan Corporation following complaints of abuse. Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
It was also attended by officials from the FT Ministry, Domestic Trade, ferry and transport operators, chambers of commerce and others.No immediate decision has been made on the issues. Early this month the Secretary-General of the FT Ministry, Datuk Seri Adnan Mohd Ikshan, said the subsidy would be continued for 2015 but the implementation process reviewed with loopholes removed and the scheme made more effective.