Set up RCI on high Sabah prices

Published on: Saturday, February 18, 2017

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By Joshua Kong
TRANSPORT Minister Datuk Seri Liow Tiong Lai said at the inaugural Sabah Port Forum last week the government is currently reviewing the cabotage policy for further liberalisation mechanisms to ensure affordable cost of goods and services in the state.

Liow also noted that the main cause of the high prices of goods in Sabah was not due to the cabotage policy and shipping costs, but weak distribution channels, high handling charges and inefficient inland transportation.

Earlier local exporter Richard Wong Tzu Piaw once again sprung to its defence by debunking what he called myths surrounding the policy.

Wong reiterated his conviction that the policy has never been the reason behind the higher cost of living in Sabah compared to the peninsula, contrary to what many critics from the industry and political circles have claimed.

So we have been arguing for decades (still doing it) over the Cabotage policy without any solution to reduce the burden of higher prices in Sabah.

Since 1980 until 2000, at every business seminar the issue of higher shipping costs to Sabah was always raised.

Since we have identified the various reasons for prices disparity within the nation and Sabah is the victim for decades and for 1Malaysia, we hope we can have one price across the board for all consumer items especially the basic ones and costs such as transportation should not be factored in the final consumer prices for imported items.

We all want solution and maybe it is timely for a Royal Commission of Inquiry on Prices (RCIP) including the costs of transportation and Sabah Ports can be a key parameter here.

So the agenda/Terms of Reference (TOR) for RCIP should include the following:-

1. Cabotage Policy

2. Prices disparities within the nation from the manufacturers/importers to the consumers including those in the rural areas.

3. Sabah Ports performance for costs effectiveness as Liow confirmed ports impact prices.

4. Business profiteering elements and doing business in Sabah,

5. Corruption if any,

6. Subsidies and their impacts for products and fuel if any.

7. Basis for a single price across the nation.

Another important issue not dealt with by the Sabah ports is the security and safety of the ports and ports area including averting boats capsizing within the port area by the users both small boats and big ships.

Security and safety of ports impact the prices of goods imported and tourism business.

Isn’t there any role for Sabah Ports with jurisdiction over the ports area while there maybe overlapping governance with other authorities? I hope the authorities concerned including Sabah Ports would examine the possibility of making our ports and nearby zones safer for tourists (foreign and local) such as domestic transport including Esszone as port businesses depends on good security and safety. Can we afford any lame duck excuses?

Maybe we have to come to a time to have some port guards to enable Sabah ports to head for world class for all users/consumers?

Joshua Kong