Extra measures must be taken to ensure execution of Cabotage policy exemption – FSI

KOTA KINABALU: The recent Cabotage policy exemption is welcomed, but it should be taken with a pinch of salt, as it still in tact for the simple reason that there is no repeal of the law giving effect to the Cabotage policy.

On top of that, there is also no exemption to be given between the Sabah and Sarawak ports, according to the Federation of Sabah Industries (FSI).

Although FSI acknowledges the efforts made by Prime Minister Dato’ Sri Najib Razak, Chief Minister Datuk Seri Musa Aman and Minister of Tranport Dato’ Sri Liow Tiong Lai in liberalising the policy, FSI admits that extra measures must be taken in order to ensure the execution of the said exemption.

Thus, FSI expressed its appeal to all private sectors, including shipping companies so that they may work together to achieve this goal.

“Sabah and Sarawak are still far behind. We in the private sector feel that there must be a catch- up plan to bring about a balanced development and create an egalitarian level of two regions – East and Peninsular Malaysia.

“Cabotage policy is not solely about price reduction but it is also about fair prices and fair competition and their effects on growth of the manufacturing and other sectors of the industry.

“We believe that the so called reduction will not be happening overnight as claimed by many quarters per se,” said FSI Honorary Life President Datuk Seri Panglima Wong Khen Thau.

FSIproposedthatthegovernment should endeavour to generate enough publicity and constantly promote this liberalization move to the global business communities, and thus attracting foreign liners to call on Sabah ports.

FSI also disclosed that the licensing authority plays an important role in the execution of this implementation. This can be done by adopting businessfriendliness and reducing bureaucracy in issuing licence to foreign vessels owners.

Apart from that FSI had also suggested the there should be a national logistics council that represent the stakeholders from both East and Peninsular Malaysia.

Furthermore, the Federal Government must prioritise the realization of the Sepanggar Bay Container Terminal (SBCT) hub port in order to speed up foreign vessels calling on Sabah ports and to address the trade imbalance issue.

“We feel that the RM1.1 million allocation for SBCT is nowhere close to the allocation given by the government for the development of Port Klang. If we aspire to create another hub, we must appeal for more funds for future planning,” said Wong.

FSI held a press conference yesterday to address the recent Cabotage policy exemption announcement at Wisma ATI.

Also present in the event was FSI President Mohd Basri Abdul Ghafar.