SAPP: Abolish the Cabotage Policy!
March 20, 2012: Luyang State Assemblywoman, Melanie Chia chided the Federal Transport Minister Datuk Seri Kong Cho Ha for saying that there is a misconception and misperception among the people in Sabah on the country’s cabotage policy.
“From what he was saying, the Minister obviously did not understand the issue raised repeatedly by the business communities in Sabah on the cabotage policy which was introduced since 1980! And for him to say that we do not understand the cabotage policy is really belittling Malaysians in Sabah!”
Businesses in Sabah have to incur higher costs due to the extra shipping costs which they have to incur due to the implementation of the cabotage policy. This policy has directly and indirectly resulted in the higher costs of goods for Malaysians in Sabah. It is also a policy which trade associations, especially exporters in the State, put their fingers on for increasing the prices of exports from Sabah to oversea countries rendering our goods not competitive to vie with competitors overseas.
The Transport Minister should at least have meetings and discussions with the trade associations in the State before he made such utterance which hurts the intelligence of the people in Sabah. As the minister in charge of transportation policy in the country, it is unthinkable that he does not seem to know the request of the business community on the subject of the cabotage policy! He should resign and discharge himself and the duties and responsibilities as the Transport Minister if he does not know his job!
Melanie further reiterated that the Minister should stop protecting the few companies privy in the national shipping industry. As a result of this, Malaysian in Sabah not have to pay for more expensive goods and our manufacturers who export to oversea markets having a tougher time in competition because of their higher prices.
SAPP wants the cabotage policy to be abolished so that all vessels, be it Malaysians or foreign, to be able to call at all ports in Malaysia. Sabah would be able to benefit from this especially with the strategic location of Kota Kinabalu in the Far East. If the Federal Government is serious in the development of Sabah, it should consider the plea of the business community without further delay.
Minister of Transport, Datuk Seri Kong Cho Ha has denied giving inaccurate information to the people in Sabah regarding the Cabotage policy.
BalasPadamIn a statement, he said he understood the needs of Sabah people and the government had wanted a win-win situation for all stakeholders, particularly the people in Sabah.
BalasPadamThe minister added that the increase in prices of goods in Sabah said to be a result of the Cabotage policy is not true as there are other factors that contribute to the rising prices and among them are storage costs and the cost of port services.
BalasPadamThe Ministry of Transport has also denied the accusation that the Cabotage policy does not allow foreign ships to call at Sabah ports after unloading containers at the Peninsular port.
BalasPadamAccording to the Cabotage policy does not prevent foreign ships from making direct call at any port in Malaysia from any port in the world. This means that after calling at Port Klang, the same ship can visit Sabah to unload and upload cargo before continuing its international destinations.
BalasPadamThe claim that only certain shipping companies are allowed to transport transit containers between Sabah and Peninsular Malaysia is also untrue as the Ministry of Transport never gave special permission or specified only certain shipping companies could provide container services in Malaysia.
BalasPadamApart from that, the government had already liberalised the Cabotage policy for the transportation of containerised transhipment cargo between Port Kelang and Port of Tanjung Pelepas and Sepangar Port on June 3, 2009. This means that foreign ships are free to transport transit containers from main vessels that berth in Peninsular direct to Sabah.
BalasPadamIn conclusion, any decision to import or export a container direct to or from Sabah is an independent business decision made by shipping company concerned. It has no direct connection with any policy or limitation set by the government.
BalasPadamImporters and exporters are also free to choose any shipping service made available to them by any shipping company.
BalasPadamThere are several factors that shipping companies have to consider before deciding to make any port of call, such as quantity of cargo, total costs involved, delivery destinations and others.
BalasPadamThe Ministry of Transport has given information, clarification and feedback regarding this issue at forums organised in Sabah involving business associations, stakeholders including the Federation of Sabah Manufacturers.
BalasPadamTapi masih juga isu yang sama dipersoalkan. Jadi apa cerita???
PadamHe has denied giving inaccurate information to the people in Sabah regarding the Cabotage policy. he said he understood the needs of Sabah people and the government had wanted a win-win situation for all stakeholders, particularly the people in Sabah
BalasPadamSAPP dan Star berlumba-lumba untuk menjuarai isu ini..
BalasPadamKita tengok nanti siapa yang akan menang:P (kalau lah ada pemenang) hehe
PadamSAPP dan STAR cuba panaskan isu ini, ada agenda mereka tersendiri.
PadamSelesaikan isu ni segera. Makin dibiarkan makin besar pula jadinya.
BalasPadam"...we do not understand the cabotage policy is really belittling Malaysians in Sabah!”
BalasPadamBah cuba kunun kasi faham kami supaya kami faham!!
Nampak mcm pembakang cuba tarik perhatian rakyat melalui isu ni. Tapi ketepikan hal itu dulu kerana apa yang penting ialah isu ini harus diselesaikan dengan cara baik.
BalasPadamIsu ini tidak sepatutnya di jadikan isu politik, boleh selesai dengan cara baik.
Padamwujudkan polisi yang tidak membebankan.
BalasPadamIni lagi isu yang di mainkan oleh SAPP.
BalasPadamNampak sangat SAPP dan STAR tengah mengejar mencari isu untuk Sabah.
BalasPadamthe cabotage policy is a policy that is practiced by many nations worldwide including developed nations. for some of these nations, it is so strictly implemented that no foreign-owned vessels are even allowed to operate within their domestic waters.
BalasPadamthe high costs of goods cannot be blamed solely on the cabotage policy without also referring to the total costs of transportation and logistics ashore including port costs and the high surcharges in Sabah.
BalasPadamthe low productivity at the ports in Sabah also adds towards additional shipping costs. freight is only one component which makes up 46% (from a study by Malaysian Shipowners Association) whilst others such as forwarding, trucking, storage etc make up the rest...