SAPP: Provide solution on Cabotage!

KOTA KINABALU, Mar 22, 2012: Sabah Progressive Party (SAPP) Secretary General Datuk Richard Yong challenged the Minister of Industrial Development Datuk Raymond to provide a solution to resolve the issue of Cabotage policy which is impeding the industrial development in Sabah. The Cabotage policy responsible for the higher shipping cost resulting in the higher material cost had taken away the competitive edge of Sabah and hampering the development of industries in Sabah.

According to the report of The Federation of Sabah Manufacturers (FSM), factories in Sabah have no choice but to relocate to elsewhere due to high cost of production brought about by the unfavorable cabotage policy

Richard Yong pointed out that the Federal Minister of Transport Dato Seri Kong Cho Ha's response denying the cabotage policy is the main cause of high cost of materials showed that the BN Federal Government is not prepared to abolish this policy which works to the disadvantage of Sabah.

"As a Minister of Industrial Development for Sabah, Datuk Raymond Tan has the responsibility to explain to the people on how he proposes to counter the ill effect of the cabotage policy since the duty of his ministry is to attract investors to the Sabah especially to the Kota Kinabalu Industrial Park (KKIP). What had he done to resolve the problem of high production cost faced by the Sabah factories?"

Richard stressed that the original intention of the KKIP is to attract local entrepreneurs and foreign investors to set up factories in Sabah and to create job opportunities for our youth. It seems that the Federal Government is not so concern with the industrial development in Sabah.

"Worse still, the State government is so subservient to Federal control and domination that business communities in Sabah still have to suffer under the cabotage policy.

"Thirty two years of protection and privileges given by the Federal government to the few shipping companies is really long enough! It is time to look at the development of Malaysia fairly although we are divided by the South China Sea!

Richard said "Raymond Tan should buckle up as the Minister in charge of industrial development. The minister must not deviate from industrial development to housing development by allocating large chunk of land in the KKIP area for housing development instead of factories."