Sabah-Taganak trading activities are not barter trade: CEO
Published on: Wednesday, July 03, 2019
By: Hayati Dzulkifli
KOTA KINABALU: The upcoming commercial trading activities between Sabah and Turtle Island (Taganak) in Tawi-Tawi, Southern Philippines, involves export and import activities and not barter trade.
Worldwide Eco Group CEO Kenneth Kong said it exports local products to the Southern Philippines via Taganak and supplies the island that is less than an hour by boat from Sandakan with oil palm products, cement, cooking oil and groceries.
ADVERTISEMENT
“The trading activities between Sabah and the Turtle Island in Tawi-Tawi involves commercial trading and not barter.
“We will supply various goods including basic necessities like cooking oil, instant noodles, potatoes and groceries, among others, to the island based on how much they need,” he said, after signing the MoU representing Turtle Island municipality with its Mayor, Mohamad Faizal Salam Jamalul.
The aim of the MoU is to express willingness of both parties to promote Business Competitiveness of Turtle Island as the gateway into BARMM as well as develop and expand relationships with Philippines traders whom are also referred to as the micro, small and medium scale entrepreneurs (SMEs).
To a question, Kenneth said the company does not supply subsidised items that are in Malaysia as the MoU agreement will involve doing transhipment trading and import export such as importing rice from Vietnam and sugar from Thailand.
ADVERTISEMENT
On whether rice transhipment from Vietnam would stop at Sabah ports, Mohamad Faizal said the transhipment would not stop here or anywhere in Sabah but go direct to Mindanao.
It is believed that the rice transhipment did not stop at Sabah port here to avoid losses and complications due to an alleged rice transhipment bungle involving 351 containers accounting for 9,000 metric tonnes of rice worth USD3 million detained and seized by Malaysian Customs at Kota Kinabalu since last October that was meant for Southern Philippines.
ADVERTISEMENT
In March this year, the paper reported that seven Vietnamese firms were shocked with the unexpected seizure of the rice transhipment, the first time in 20 years that it happened. It had been doing rice trading with Sabah and Labuan trading companies.
It was also reported that a group of 10 consignees (end buyers) of the rice involved in the seizure of 351 containers of rice by the Malaysian Customs, had undertaken an alternative to divert all the businesses to Tarakan, Indonesia, They do not need Sabah or Labuan anymore in such trading as the Philippine President has approved their request to import rice directly from sourcing countries like Vietnam, Thailand or Pakistan.
Following this, Sabah expects to lose future rice imports about RM2 billion a year not only from Vietnam but also from the BIMP-EAGA region, according to Sabah Cross Border Association Chairman Nordin Ening.
Kenneth said the company, which has export permits, would be giving priority to export cement from here that will be directly transport to the island in big vessels apart from getting cement from Indonesia as its back-up when there is a huge demand for cement.
On selling cooking gas, the company’s Chief Operating Officer Johnny Kunan said it is in the pipeline as there is necessary paperwork and to get approval before it could export it to the Southern Philippines via the island.
The imminent commercial trading between Sabah and Taganak is safeguarded from cross-border crimes.
He said he will ensure 24/7 surveillance on the waters especially the routes of transporting the goods to the island, which is aimed to be the gateway for cross-border trading between Sabah and into the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), and nearby islands.
“I have signed the MoU with Sabah-based company Worldwide Eco Group to commit a higher business cooperation and pursue many significant business activities such as promotion of new business opportunity, investment and bilateral trade that will render win-win situation.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
