KOTA KINABALU, May 12 — Putrajaya must heavily promote the cabotage exemption for Sabah and Sarawak to encourage shippers to take advantage, said the Federation of Sabah Industries (FSI).
FSI life president Datuk Wong Khen Thau said that although they were grateful for Putrajaya’s “brave” move to open up more shipping routes, added steps were needed before the intended result of lower prices could be realised.
Other measures include easier and more flexible licensing for foreign vessel owners and the formation of a national logistic council to look at the industry holistically for its development and monitor pricing or shipping charges.
“Cabotage policy is not solely about price reduction, but also about fair prices, healthy competition, connectivity, efficient processes and how it affects the growth of the manufacturing and other sectors of the industry,” he said yesterday.
He said the steps were crucial to maximising the benefits of the cabotage exemption starting next month, pointing out that a similar move in 2009 did not yield the intended results as it was not accompanied by supporting measures.
Last Sunday, Prime Minister Datuk Seri Najib Razak announced that the cabotage policy would be further liberalised and allow all cargo transport vessels to ply any port in Peninsular Malaysia to any port in Sabah, Sarawak and Labuan.
Transshipment of goods could move freely between east and west Malaysia, but not between Sabah and Sarawak. The move has drawn praise, but uncertainty remains if it will lower the prices of goods in Sabah that are now up to 30 per cent more than in the peninsula.
Wong also said Putrajaya should prioritise the development of the Sepanggar Port Container Terminal, as the current handling capacity there made it not viable for large ships to call there.
Other than FSI, the nine group behind the proposal are Sabah Housing and Real Estate Developers Association, Sabah Timber Industries Association, Malaysia Plastic Manufacturers Association of Sabah, Malaysian International Chamber of Commerce and Industry Sabah, Kota Kinabalu Chinese Chamber of Commerce and Industry, Kota Kinabalu Forwarding Agents Association, Kota Kinabalu Lorry and Containers Association, Sabah Employers Association and Auto Traders Association of Sabah.
The cabotage exemption announcement, although in general lauded by Sabahans who has been appealing for it for years, has caused ripples with local shipping companies who are mulling moving overseas to make up for massive loss of business.
