Shipowners warn of dire consequences if cabotage policy is done away with

SIBU: Sarawak Sabah Shipowners Association ( SSSA) warns the government that the abolishment of the cabotage policy will result in the compromise of national security and rampant smuggling of subsidised commodities.

Its secretary general Renco Yong told The Borneo Post that there would be grave consequences if the cabotage policy were to be abolished for good. Firstly, national security would be compromised as foreign ships could stay as long as they want.

“With the abolishment of the cabotage policy, there will be no limitations for foreign ships to stay in our waters. They can stay as long as they want. That means the crews on board can stay in our state as long as their ships stay in our waters. And every foreign ship will be like a small foreign country residing within Sarawak and Sabah.

“Just imagine the scenario of a foreign ship with a crew of 100 moored or berthed in our waters. Without the cabotage policy, the ship may stay for a year or more. While the crew are here, we have no jurisdiction over them.”

“While they are aboard their ships, they are under the rule of law of their own country. They may come aboard our shores to do anything such as working or spying. They only have to return to their ships at night. Is that what the government wants?”

He further pointed out that the present cabotage policy stipulated that 75 per cent of the crew on Sarawakian ships must be locals. With its abolishment, local ships and vessels would be allowed to employ 100 per cent foreign crews.

“It is important to employ locals as crewmen. While as crewmen, our locals will be trained as seamen and may be used as backup when there is a war. It is like national service training.”

“During war time, roads and airports may be destroyed but not rivers and seas. During this time, our local crewmen who are trained seamen will be crucial in helping our state either in rescuing, defending or transporting. If the cabotage policy were to be abolished, local shippers may turn to employ 100 per cent foreign crew which is cheaper.”

“That was why when US President Donald Trump came to power, one of his decisions was to revert back to the policy of having 100 per cent American citizens on every US ship and vessel. For Indonesia, the country has always had the policy of 100 per cent national crew.”

He stressed that with cabotage policy, foreign ships are already allowed to call at one local port, against the misconception that they can only call at a major port in Peninsular Malaysia.

“Without cabotage policy, foreign ships can call at as many ports as they want in Sarawak. While they are here, they may go from port to port to buy up our subsidised commodities such as sugar, rice, flour and petrol as well as diesel. They will then bring these commodities back to their countries to be sold and make a profit. This is something that our government must consider before making a final decision on whether it wants to abolish the cabotage policy for good,” said Yong.

He reiterated that cabotage policy has never been the cause of price disparity between East and Peninsular Malaysia.

“Due to competition from foreign carriers, which we are already experiencing, and the rising cost of living, local shippers have already lowered our charges by 30 per cent from RM900 to RM600 per 20-foot container five years ago. When we reduced our freight charges, did it make any impact on prices of goods?”

“And if businessmen think that we are charging too high, let us see what happens when all local ship owners call it a day after the abolishment of cabotage policy and all local businessmen have to depend on foreign ships to carry their products,” said Yong.

Prime Minister Datuk Seri Najib Tun Razak had announced the abolishment of the cabotage policy for Sarawak, Sabah and Labuan effective June 1.