Cabotage Policy misunderstood – Kong
KOTA KINABALU March 18, 2012: The Transport Ministry has never stopped foreign ships to directly berth at Sabah ports.
Instead, its minister Datuk Seri Kong Cho Ha stressed that foreign ships are welcome to berth at the ports in the state with no restrictions.
Speaking to reporters after inspecting the progress on the upgrading works of the Kota Kinabalu International Airport here yesterday, he added that there had been a lot of misconception on the Cabotage Policy, with many blaming it as the cause of the higher prices of goods in Sabah.
Various quarters in Sabah including the Federation of Sabah Manufacturers (FSM) had been calling for the scrapping of the policy, which was implemented since 1980.
Under the policy, domestic trades between any two ports in the country can only be served by Malaysian-owned shipping companies. Business operators stressed that it does not only affect exporters but also increased the costs of importing products into Sabah.
“The government actually practises very liberal Cabotage Policy in the country; it is a policy adopted by almost every country in the world, and Malaysia is no exception.
“But people must understand what is Cabotage Policy, and when and where the ships can operate. There are misconceptions and misperception over the policy and issue,” he said.
Kong said the ministry never stopped any shipping companies to transport their goods directly to the ports in Sabah and vice versa.
“Any ships that want to bring goods to Sabah directly or want to take goods from Sabah directly to any country all over the world are welcomed to do so, there is no restrictions. I have been explaining this to the people, but still I am asked the same question over and over again,” he said.
However, Kong stressed that at the end of the day, it was still a business decision.
“It is like operating an airline. If they decide to operate a direct flight to Kota Kinabalu (KK), they may do so. We never stop them, but whether they want to fly to KK, Sandakan or Tawau airports, it is a business decision they have to make.
“The same goes to ships. It is a business decision as they will have to weigh whether they can make money, whether there is enough load or not.”
On another development, Kong said the government would not meddle into the share swap between Malaysia Airlines (MAS) and Air Asia.
Disclosing that it was not even mentioned during the federal Cabinet meeting, he described it as also a ‘business decision’ which would allow both parties to be able to cooperate better and work on ways to reduce costs.
“Whether ultimately it is a good mechanism or not, I think it is for the two companies to determine,” he said.
Disclosing that Khazanah Nasional, the investment holding arm of the government , is the major shareholder in MAS.
He said the ministry was just a regulator, adding: “Where they (MAS) want to fly and how many times, additional destinations and routes cancellation, is a business decision of an airline. But each time they stop or add any routes, they have to inform us.”
The Transportation Ministry must make the policy clear to all the people as well as the foreign businesses who wanted to dock at our ports. It seems that there is still a misunderstanding with the Cabotage policy.
BalasPadamFurther explanation regarding this cabotage systme is needed so that the confusion regarding this can be cleared up, hopefully Kong will make further elaborations.
PadamSeharus memberi penjelasan yang patut agar kekeliruan tidak berlanjutan.
PadamPenjelasan perlu di berikan agar orang ramai faham berkenaan hal ini.
PadamIn my own understanding, any foreign ships who wishes to dock at Sabah or Sarawak ports must first go through the Port Klang first before they are allowed to pass, is this statement true?
BalasPadamSabahans are never misunderstood about this thing.
BalasPadamMaksudnya menteri yang berkenaan tidak pandai menjelaskan hal sebenar?
PadamRasanya begitu la.. itu lh sebab kos penghantaran mahal.
PadamNever thought he will potray Sabahans in this way.
BalasPadam“It is like operating an airline. If they decide to operate a direct flight to Kota Kinabalu (KK), they may do so. We never stop them, but whether they want to fly to KK, Sandakan or Tawau airports, it is a business decision they have to make.
BalasPadamBut the thing is MAS has cut some of the routes here.
So far only Wong Ken Thau slams the minister.
BalasPadamActually the initial purpose to set up the cabotage policy is because only a small number of Malaysian registered ships were playing the coastal routes. The purpose is to encourage local participation in domestic by encouraging local registration of ships and local incorporation of companies participating in domestic shipping.
BalasPadamHowever it would be best if the Transportation Ministry can review the Cabotage System to ensure that it is still relevant to current times.
The cabotage policy has its own purpose therefore we should probably review it first, maybe one or two of the policy is burdensome for the people so those policy should be changed to some other policy which is less burdensome and yet still serve its purpose.
BalasPadamThe Cabotage is to make Malaysia a maritime nation, Reducing the country's dependence on foreign ships by increasing the level of participation in Malaysia international and coastal shipping business; Engaging in shipping commitments through bilateral, regional and other trade agreements, Training and development of Malaysians in technical, professional and commercial aspects of shipping business, especially in regard to the Malaysianization of floating staff and support to higher educational institutions.
Hopefully the government and the transportation ministry will make the best decision regarding this system.
It is important to explain and inform the people esp people in E.Malaysia. Do the people have the right to decide how and why the ship have to dock here?
BalasPadamI am sure many want to know why the cabotage system is implemented here. still not clear
The rationale of the cabotage policy can be seen as part and parcel of the government's policy objectives of making Malaysia a maritime nation and reducing the country's dependence on foreign ships by increasing the level of participation in Malaysia international and coastal shipping business
BalasPadamCabotage is a burden to the people in Sabah. Its rather good to eliminate it.
BalasPadamKenapa Sabah menerima system yang tidak memanfaatkan orang Sabahan?
BalasPadam“But people must understand what is Cabotage Policy, and when and where the ships can operate. There are misconceptions and misperception over the policy and issue,”
BalasPadamMay be a good idea to study about the system. be able to do necessary adjustment.
Adakah kabotaj masih diperlukan buat masa kini? harus dikaji semula.
BalasPadamPada dasarnya polisi kabotaj ini positif dan bertujuan membantu rakyat. Namun mungkin pelaksanaannya tidak seperti yang diharapkan seterusnya menimbulkan masalah. Oleh itu, wajar dipertimbangkan semula atau diubah untuk jadikannya lebih relevan.
BalasPadamRata2 marah dengan polisi ini sebab ia mengakibatkan perbezaan harga yang agak ketara. Jika polisi ini membebankan mereka yang berada di Sabah Sarawak, maka ia perlu digubal balik. Let it be a win-win situation.
BalasPadampolisi yang byk memberi beban kepada rakyat sebaiknya perlu dimansuhkan. wujudkankan polisi yang dpt menyenangkan rakyat.
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 cabotage policy does not at all prohibit vessels from foreign ports to call directly to/from any Malaysian port including ports in Sabah and Sarawak. For example, a vessel from Singapore or Hong Kong is free to call directly to/from any Malaysian port such as Sepanggar, Bintulu etc.
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...