MICCI: Cabotage policy main contributor to high cost
KOTA KINABALU: The Malaysia International Chamber of Commerce and Industry (MICCI) Sabah Branch has singled out the Cabotage policy as the main contributor to high cost of doing business in Sabah.
“The Minister of International Trade and Industry says that the partial lifting of the Cabotage Policy has not achieved its objective of reducing the shipping cost.
The Deputy Minister of Transport states that the Cabotage Policy is not the only cause for high cost of doing business in Sabah. We feel that it is a major contributing factor,” said MICCI chairman, Brig. General® Datuk A Arulpragasam.
Arulpragasam in his welcoming remarks at the MICCI Sabah annual luncheon here yesterday, said the high logistic cost of doing business in Sabah is a perennial issue and it is hoped that the State Government could work with its Federal counterpart and look into ways and means to address the problem.
He said the Chamber advocates that a single and uniform pricing system be implemented for the whole country in keeping with the 1Malaysia concept so that Sabah will not be disadvantaged.
“If this (Cabotage Policy) is not the cause, then what? And how is it going to be solved and by whom? It must be tackled at Federal level and the policy makers must find solutions and implement them even if it is the expense of being politically unacceptable,” said Arulpragasam.
He added that with the Prime Minister Datuk Seri Najib Tun Razak now fully aware of the issue and has agreed to look into it, MICCI hopes it will be solved soon, given that companies in Sabah involved in producing furniture for export to Europe were already relocating to Vietnam due to the high cost of operation in Sabah.
Chief Minister Datuk Seri Musa Haji Aman in officiating at the luncheon, said the government was aware of the Cabotage Policy issue and the higher cost of doing business in Sabah.
He said both the State and Federal Governments recognize the need to address the high logistic cost and eventually adopt a uniformed pricing system.
He noted the Minister of International Trade and Industry Dato’ Seri Mustapa Mohamed has promised to look into the issue and Sabah hopes he will bring it up with the Transport Ministry to find the best possible solution.
The Chief Minister also said the government takes note of other issues concerning the business community in Sabah that have been highlighted by MICCI, including those pertaining to human capital development and land ownership.
He urged MICCI to assist in training locals to enable them to acquire the necessary skills to support the industry in Sabah.
“This is where cooperation between the private and public sectors comes in. I hope MICCI members will consider taking the lead in helping to build a pool of capable human resources in the State.
On land ownership issue, Musa said the relevant authorities will look into statutory right and title lease extension and find ways to solve the problem.
He said following a recent case on native land application, the State Government conducted a careful study and consulted relevant groups before coming up with the “Communal Title” approach to address the matter.
“The government always has the best interest of the people at heart. This is why consultation and feedback from affected groups will be sought before a final decision is made,” he said.
Earlier, Arulpragasam noted that the State Government has been adopting a business-friendly and speedy approach to resolve the extension of title deeds so that Sabah can be a leading state in the country for business investment.
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hopefully the government especially federal is really aware about this and find the possible solution as soon as possible, because the policy has reduced the competitiveness of business/industries in the State.
BalasPadamthe Cabotage policy as the main contributor to high cost of doing business in Sabah. i think both the State and Federal Governments should find the best solution for this issue.
BalasPadamIsu ini telah lama diperkatakan dan telah banyak yang memberi pelbagai pendapat. Jika kita teliti research yang telah dilakukan oleh Datuk Wong, policy ini hanya membawa malapetaka kepada ekonomi sabah. Dan Saya pasti, beliau telah lama dalam industri ini... walauapapun pertimbagan itu, perlu utamakan kepentingan Sabah!!!
BalasPadam“If this (Cabotage Policy) is not the cause, then what? And how is it going to be solved and by whom? It must be tackled at Federal level and the policy makers must find solutions and implement them even if it is the expense of being politically unacceptable,” said Arulpragasam.
BalasPadamI agree with Arulpragasam statement. This issues is needed to be tackled at federal level. Hopefully, the cabotage policy will be improved, if not abolish it to make a better policy.
Scrap off the cabotage policy and make a new improve one.
BalasPadamMemang pun, diharapkan ia boleh dimansuhkan.
BalasPadamPlease review and conduct a thorough study about the cabotage policy. It has contributed to high cost and discourage businessmen to do business in Sabah.
BalasPadamNo need for further review, the Cabotage policy must be abolished immediately.
BalasPadam