NGO calls for end to Cabotage Policy
To solve this problem, he said all that Najib needed to do was to address the problem at its root by calling for the abolishment of the Cabotage Policy as pointed out by many in Sabah over the years.
“The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in Sabah. This is not just empty talk or made up theory but a fact supported by research and expert opinion.
“If the BN government is serious in solving the issue, it has to see that the Cabotage Policy is something they must do away with, not creating business opportunity for a few operators at the expense of hundreds of millions in public funds,” he added.
Zainal said Ganas would work closely with Sabah PAS to heighten public awareness and push for the abolishment of the unfair policy.
He noted that among the things mentioned in the Inter-Governmental Committee (IGC) Report, from which the Malaysia Agreement 1963 was formulated, was the federation members’ right to manage and administer their own ports and trade without interference from the federal government design to influence or change the trade route.
Based on this, he said Sabah, prior to the implementation of the Cabotage Policy in the 80′s, had the freedom to trade directly with other international ports, such as Hong Kong.
However with the policy in place, he said Sabah was forced to trade through Port Klang, which is a clear breach of the Malaysia Agreement.
“So, who knows maybe we will take the government to court on the issue. This is our rights and we have been denied of it through Cabotage Policy,” he added.
Kalabakan MP Datuk Seri Abdul Ghapur Salleh said the price of goods in Sabah was higher by 30 to 50 percent compared to the peninsula because of higher logistics cost.
BalasPadamSo when it was announced that the transportation cost for goods in both states (Sabah and Sarawak) would be subsidized by the government, it is a relief for the people.
PadamThat means, items that are only found in the towns can also be available to residents living in the interior," he said.
PadamKerajaan telah pun mencadangkan akan membuka lebih kedai 1 Malaysia yang mana harga adalah sama dengan di Semenanjung. Tidak ada caj pengankutan untuk semua ini.
PadamIni menandakan kerajaan memang prihatin dengan kepentingan rakyat di Negeri Sabah dan Sarawak.
PadamJoseph Kurup said the expansion of the 1Malaysia People's Shop to Sabah, Sarawak and Labuan is welcomed.
BalasPadamBesides the KRIM, the standardisation of prices and provision of transportation subsidy will benefit the people of Sabah, Sarawak and Labuan especially those in the interior. He said.
PadamKualiti KR1M harus ditingkatkan dari masa ke masa dan beri peluang peniaga tempatan memasarkan barangan mereka.
PadamTentu ada perubahan yang lebih baik jika polisi kabotaj dimansuhkan
BalasPadamjika perlu, mansuhkan saja polisi ini.
PadamKetua Menteri, Datuk Seri Musa Aman berkata, antara peruntukan dan inisiatif pembangunan untuk rakyat adalah melalui peruntukan sebanyak RM386 juta bagi menyeragamkan harga barangan di Sabah.
BalasPadam"Kita selalu nyatakan harga barangan kita tinggi dibandingkan dengan harga di Semenanjung. Jadi dengan adanya penyeragaman harga ini sudah tentunya ia amat dinantikan rakyat Sabah," kata Musa pada sidang akhbar di kediaman rasmi Ketua Menteri Sri Gaya.
Padamkerajaan kini berusaha untuk selaraskan harga barangan di sabah dgn Semenanjung.
BalasPadamDeputy Prime Minister Tan Sri Muhyiddin Yassin said the cabotage policy, which has long been blamed for the higher cost of living in Sabah, is of special interest to the Federal Government, just as it is to the State Government and business community in Sabah.
BalasPadamThe policy, together with the higher prices of goods in the state, has been brought up and discussed in Parliament on many occasions, but no tangible solution has been achieved so far, he said.
In my opinion, the Federal Government want to see Sabah continues to grow economically as this would translate into economic growth for the whole country.
Chief Minister Datuk Seri Musa Aman said local companies in Sabah want to be given more opportunities to participate and benefit from the oil and gas industry currently being developed in the state.
"The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in 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.
"The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in Sabah"
BalasPadamThe Malaysian cabotage policy began in 1980 with the purpose of developing Malaysian ownership and local shipping in general whilst at the same time minimising Malaysia’s dependence on foreign vessels as well as the outflow of foreign exchange in the form of freight payments.
"The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in Sabah"
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.
"The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in Sabah"
BalasPadamAt the same time, the cabotage policy that Malaysia practices is a liberal one as Malaysia also allows foreign vessels to operate within our domestic sector through the granting of an exemption issued by the Domestic Licensing Board upon fulfilling the criteria set.
"The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in Sabah"
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 and Sarawak.
"The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in Sabah"
BalasPadamThe low productivity at the ports in Sabah and Sarawak 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.
"The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in Sabah"
BalasPadamThe cabotage policy has successfully encouraged more and more locals to venture into shipping. By numbers alone, in 1984 there were only 622 vessels with a total gross tonnage of 1.3 million tonnes but today, the nation has 4,291 vessels with a total gross tonnage of 9.9 million tonnes.
"The Cabotage Policy which results in higher cost of transportation of goods has long been blamed for the much higher cost of living in Sabah"
BalasPadamSuch tonnage has given employment to more than 15,000 Malaysians nationwide including in Sabah and Sarawak. The policy has also created opportunities for supporting industries such as shipyards and slipways in both East and West Malaysia.