CABOTAGE POLICY UNHEALTHY FOR SABAH

Kota Kinabalu: Liberalisation by doing away the cabotage policy for Sabah is inevitable in the long run if the state wants to be more competitive, according to the Institute of Development Studies Sabah (IDS).

"We believe it's part of the global trend. Liberalisation in the long term helps to reduce cost,"

"Definitely, in the long run we have no choice, it's an open economy.

Eventually, if we do not open up, our neighbours (countries) will do something against us," said IDS executive director Datuk Dr Yaakub Johari.

He said the high cost of doing business here was compounded by the existing cabotage policy, which was a factor impeding economic growth.