Foreign vessels in Sarawak asked to leave under cabotage policy, says shipowners group

KUALA LUMPUR, June 12 — About 40 foreign sand dredges and barges berthed off Santubong between last October and April this year were ordered to leave under the cabotage policy, the Sarawak Sabah Shipowners Association (SSSA) said.

Borneo Post reported Yong Ing Huong, chairman of the Sand and Gravel Working Committee, a sub-committee under SSSA, as saying that without the cabotage policy, Sarawak would have no right to ask the foreign vessels to leave after allegedly overstaying beyond the three-month period mandated by the policy.

“They had to leave because of the cabotage policy. Without the cabotage policy, they may stay as long as they want,” he was quoted as saying.

“In mulling over abolishing the cabotage policy, we would like to ask the government to look into the case of these 40 foreign vessels,” Yong added.

Putrajaya exempted Sabah, Sarawak and Labuan from the cabotage policy effective last June 1, but some local shipping companies have expressed concern over potential massive losses as the cabotage exemption means foreign ships — usually larger built vessels — will be able to transport cargo domestically.

Yong reportedly said that local shipowners had witnessed these foreign vessels overstaying.

“Under the cabotage policy, these vessels can only dock for three months.  If they want to stay longer, they will have to apply for a new permit.”

Yong had also claimed that the presence of foreign vessels became a problem for villagers in Santubong, as sailors from the vessels allegedly stole livestock and vegetables from them.

“The sailors of these vessels came on land to go to nearby villages to steal the vegetables and chickens from the farms of the locals. Their presence had become a threat to the local villagers.

“The complaints from the villagers was one of the reasons why these foreign vessels were asked to leave,” Yong was quoted saying.

The cabotage policy enforced since 1980 has been blamed for the 20 to 30-per cent higher prices of goods in Sabah and Sarawak, causing long-standing contention among state industry players.

But the Malaysian Shipping Association disputed last month claims that cabotage was responsible for the rising cost of consumer goods in Sabah, Sarawak and Labuan, noting that studies by the Economic Planning Unit and World Bank have shown no such link.