KUCHING, Oct 9 — Sarawak Manufacturers Association (SMA) is hoping that the cabotage policy would be abolished so that the state’s economy would improve.
“If there’s no more national cabotage, manufacturing inputs would be cheaper, and outward freight would also be cheaper, thereby increasing competitiveness,” said SMA secretary-general Stephen Ang when asked about the association’s wish list for the 2024 National Budget.
He added that without the cabotage policy, the import of materials and export of products would reduce the costs and encourage better competitiveness.
Ang also said before the Covid-19 pandemic, he had represented SMA to have dialogues with government agencies with regard to the cabotage policy.
“I told them that before the formation of Malaysia, Sarawak had ships with imported goods from other countries being docked here.
“With politicians involved, cabotage policy then started to protect local shipping industries. I was of the view that protecting the local (shipping) industries could come as other options.
“We must think of fair competition more on the positive side and not on the negative side.
“Instead of protecting certain industries, our leaders (from the government and private sector) should work together to make our industries become more competitive and better developed.
“Since the majority of our members are from the SME (small-medium enterprises) sector, we have to grow and improve our competitiveness in our business.”
On other pertinent requests, Ang expressed hope for the government to provide incentives or assistance towards enhancing automation or mechanisation to cope with the rising labour cost.
He also hoped that the government could reduce company tax, but should the Goods and Services Tax (GST) make a return, he hoped that the government could reconsider setting the rate at three per cent, instead of six per cent. — Borneo Post Online
