SAPP: Abolish Cabotage Policy

Kota Kinabalu, Jun 4, 2009: SAPP Treasurer General Datuk Wong Yit Ming in a statement said that the policy hinders the growth of manufacturing in Sabah and Sarawak.

Sabah will always have to "play catch up" with those from peninsula and this will pose a major challenge to the success of the Sabah Development Corridor, he said.

"The policy deprives Sabah's industries, the competitive ability to survive let alone compete with her peninsula counterparts. Unless the policy is abolished, there is no way for us to compete fairly, openly and ideally due to the uneven playing field," he said.

"The cost of doing business in Sabah will be higher due to the high freight charges especially for imported raw materials as they would have to be transshipped via Port Kelang contributing to double handling cost," said Wong.

"Currently food products (such as rice) in Sabah are much higher than in peninsula. Why must poor people in Sabah pay more and subsidise the rich in peninsula?

The cabotage has contributed to the high price of essential goods," he stressed.

"Adding salt to the hardship faced by Sabahans, even pharmaceutical products such as Panadol are more expensive than in peninsula.

"This makes a mockery of the State Government's plan to achieve zero poverty by 2010," he said.

The lopsided policy benefits majority shipping companies based in peninsula, while Malaysians in Sabah are made to pay more to satisfy the needs of the so-called shipping industry. He said this policy should not have been there even from the beginning.

It has been exploited to form a cartel, which is a way to monopolise the business and benefit only the major players, he said. Wong said the State Government is obliged to use its influence with the Federal Government to open up the ports around Sabah.

"This can be done by granting a special exemption from the Cabotage Policy for Sabah. The Sepangar Bay Container Port Terminal should be made a National Load Centre in Sabah.

"They should also resolve the high costs of imports and exports in Sabah to a reasonable levy by the providers of port services," he said, adding that in their intention to develop, protect the port and shipping services and industry, the Government should subsidise vessels plying between East Malaysia and Peninsular Malaysia in order to the lower the freight charges and benefit the people of Sabah.

"The Government should not do it at the expense of East Malaysians through the lopsided cabotage policy," he said.

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