Sabah aims for transshipment port to spur manufacturing
KOTA KINABALU: Trade and Industries Department Director Patrick Tan has suggested to a delegation of Chinese scholars to help turn the Sepanggar Port here into a transshipment hub.
Speaking to the delegation at Wisma Kewangan in an exchange group dialogue yesterday, Tan said the Sabah government aimed to turn the Sepanggar Port into a transshipment port and make it a cheaper destination for mainline shipping operators (MLO) to conduct their operations.
He said that presently Sabah had no direct shipment as her manufacturing sector was still at its infancy.
He also said investors were not keen to come to Sabah to start their manufacturing activities due to its high shipping costs.
Tan said the Ministry of Trade and Industry in which his department is under wanted to raise the manufacturing sector's contribution to the Gross Domestic Product from the present seven percent to 35 percent.
No time frame was given to achieve what Tan described as a ‘tall order' but stated that this could be facilitated with the realization of the transshipment port.
BIMP-EAGA Business Council (BEBC) Chairman, Datuk Roselan Johar Mohamed urged China to invest in Sabah and Sarawak in the production of agriculture products such as banana, Paulownia trees and Napier grass which had been turned to protein source in Taiwan.
He said that they could also look into the BIMP-EAGA region as a production area for agriculture produce.
Meanwhile, Sabah Maritimes Silk Route Research Society president Professor Dato Dr Wilson Yong said during the exchange group dialogue that he hoped the event would enable the Chinese delegates to have a deeper understanding of the Eastern Asean growth zone of which Sabah is the centre.
The Eastern Asean Growth Zone includes Indonesia, the Philippines and Brunei, he said.
He added that since the establishment of the China-Asean Free Trade Area, there had been many developments in economic growth between China and countries in the region.
“The Belt and Road Initiative has indeed been in full swing in recent years and has also triggered a lot of activities, but the Eastern Asean region, especially the BIMP-EAGA level, there is still a lot of opportunities for collaboration with China,” he said.
He said however that Sabah had not been included as a region under the Belt and Road initiative despite the ample historical evidence that China and Sabah have more than a thousand years of history of economic and social relationships with each other.
“In the town of Sandakan on the east coast of Sabah, there is a Zhenghe Road and Zhenghe River since years ago. In the caves near the Kinabatangan River, there are unique Chinese paintings and various antiques.
“In addition, there were also remains of a Song Dynasty shipwreck in the sea off Kudat. All this proves that Sabah was an important area along the Belt and Road. We hope through our distinguished scholars the China government will consider including Sabah as one of the Belt and Road regions,” he said.
The delegation of Chinese scholars who were present were Wang Yi Wei (Institute of International Affairs, Renmin University of China's Director), Su Ziohui (Deputy Director, Department of International and Strategic Studies, China Institute of International Studies), Xu Liping (Director of Centre of Southeast Asian Studies, Chinese Academy of Social Sciences), Hu Bo (Executive Director, Maritime Strategy Research Centre and Senior Researcher at Peking University), Zhang Sheping (Counselor, Department of Asian Affairs, Ministry of Foreign Affairs of China) and Luo Jingying (Attache, Depatment of Asian Affairs, Ministry of Foreign Affairs of China).
Also present were the Consulate General of the People's Republic of China in KK, Consul Li AiLi and Vice-Consul Zhang Qi.
Also representing Sabah at the meeting were Malaysian International Chamber of Commerce and Industry (Sabah Branch Chairman), Datuk Seri Panglima Wong Khen Thau, Federation of Sabah Industries President, Datuk Chong Hon Len, Industrial Development Ministry's Permanent Secretary, Tseu Kah Yue, International Trade and Industry Ministry's Director, Rita Elisha, Matrade Malaysia External Trade Development Corporation Director, Rashid Mohd Zain and Malaysia Investment Development Authority Director, Habibah Enok.