ECONOMIC DIVIDE BETWEEN EAST MALAYSIA AND WEST MALAYSIA CAN BE NARROWED IF CABOTAGE POLICY ABOLISHED

Cabotage Policy is no good: FSM

KOTA KINABALU: The Federation of Sabah Manufacturers (FSM) is again calling for the total liberalisation of the Cabotage Policy.

FSM president, Datuk Wong Khen Thau told reporters at a press conference held at Wisma FSM yesterday that a logistic study conducted by the Industrial Development Ministry has found that the policy does contribute to the high prices of goods in Sabah.

It has also raised the cost of doing business in the State.

The State Government has proposed for the policy to be abolished.

“We hope the Federal Government under the Ministry of Transport will consider full liberalisation from the Cabotage Policy,” he said.

He added that the economic divide between East Malaysia, namely Sabah and West Malaysia would be narrowed if the policy is abolished.

Wong also said that Sabah could be promoted as a hub port for countries in the Far East.

“I feel we can play a part. About 60 to 70 per cent of the country’s imports are from China, Japan and the Asean growth region. These places are closer to Sabah than anywhere else, so Sabah has the potential to become a hub for the region,” he said.

At the same time, Wong also commented on the implementation of the goods and services tax (GST).

“We believe it is a good policy, but its implementation should not be done immediately,” he said.

Before the GST is implemented, the country’s administration should look into the ‘one country one price’ because it will not be fair for Malaysians in Sabah to pay more than 20 per cent for the prices of goods as compared to what consumers in Peninsular Malaysia are paying.

“The people in Sabah are also earning less than those working in Peninsular Malaysia, yet we are paying more,” he said.

On the New Economic Model (NEM) aims to turn Malaysia into a country with high income nation, Wong said that Sabahans are earning an average US$3,000 to US$4,000 per annum.

Those in Peninsular Malaysia are earning between US$7,000 and US$8,000 per annum.

“We need to catch up by the year 2020 and at least raise the income earned by Sabahans in Sabah to US$15,000 per annum,” he said.

He added that employers in Sabah would like their employees to gain a decent income but in order to achieve that, the business environment here must be conducive.

“The cost of doing business in Sabah must be looked into, so that it could at least be competitive with the national level, otherwise it will be tough for us to reach the 2020 goal,” he said.

Towards this end, the Federal Government can come up with subsidies to upgrade the infrastructure and provide special packages for SMIs (Small & Medium Industries) and SMEs (Small & Medium Enterprises) in Sabah.

On labour issues, Wong reminded that foreign labours are still crucial in some sectors of Sabah’s economy.

“No matter how much you try, the locals will not be keen on jobs that are dangerous, dirty and difficult such as those offered at plantations, constructions or cleaning industries,” he said.

He added that if the locals were keen on taking up such jobs, there would be no unemployment in Sabah.

“But this problem is not unique to Sabah. Some jobs are just shunned by the locals, especially in a society that is more affluent,” he said.

He also urged the government to introduce a standard levy for foreign workers.

“We recommend RM360 for the levy charge for all,” he said.

As for the introduction of a minimum salary for all employees, Wong said that employers were not against that.

However, the minimum wage should be reflected or linked to the workers’ productivity.

“There is no point providing high salary if they can’t produce,” he said.

Meanwhile, FSM will be submitting a memorandum containing all the contents above to the Federal Government by the end of next month.

“We will give a copy to the State Government,” he said.