KOTA KINABALU: Chief Minister Datuk Seri Musa Aman said the state and federal governments are working closely to address the cabotage issue that is a cause for concern among various groups, including the business community.
He said as the matter was under the federal government’s jurisdiction, the state government had persuaded the Economic Planning Unit of the Prime Minister’s Department, to undertake a comprehensive study on the matter.
The state government was recently informed that an interim report, “Development of Logistics and Trade Facilitation Masterplan”, had been completed.
“It is our understanding that all relevant stakeholders will be engaged at some point in the study.
“As such, I expect that some of you will be called to give your input into it,” he added is his speech at the Malaysia International Chamber of Commerce and Industry (MICCI) annual luncheon here yesterday.
The text of his speech was delivered by his deputy cum State Minister of Industrial Development, Datuk Raymond Tan Shu Kiah.
Also present at the luncheon was the chairman of the MICCI Sabah branch, Brig Gen (R) Datuk A.Arulprasagasam who had earlier in his speech raised the cabotage issue.
He said the current cabotage policy was a key issue faced by the business community in Sabah as it had in one way or another, contributed to the high cost of doing business in the state.
He asked that the issue not be left “hanging forever” and wanted to see the federal government grant a full liberalisation of the cabotage policy, though ship owners might not be agreeable.
“It is wishful thinking that giving large subsidies to ship owners to keep the shipping and logistics costs down will solve the major part of the problem.
“Looking far ahead, the solution is for both the federal and state governments to designate Sepangar (port) as the second transhipment hub-port after Port Klang,” Arulprasagasam said.
He added that by doing so, the high cost of shipping and logistics can be tackled and at the same time, serve and tap the potential Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) market with its existing population of more than 70 million.
In Arulprasagasam’s opinion, Sepangar was ideally located to tap the vast economic potential in the BIMP-EAGA region, and if Malaysia waited any longer, the country would lose out to its neighbours.
On a request by MICCI Sabah to the government for the deferment of the first revision to a higher quantum of the minimum wage of RM800 next year, Musa hoped that the business sector would appreciate its necessity.
He said he believed that the answer to poor work quality and productivity among workers lay more on skills and productivity enhancement than wage suppression.
He said in Malaysia there are a number of incentives available to firms undertaking human resource training and development, productivity improvements and research and development, with the incentives normally taking the form of tax deductible expenditure or investment tax allowances.
“These incentives are designed specifically to address the problem of poor work quality and productivity.
I urge all businesses in Sabah to make good use of it,” he added.
At the same event, Raymond also witnessed 12 companies, including Petronas, presenting their respective sponsorship for the 8th Sabah International Expo 2014 or SIE2014.
The organising committee is chaired by Datuk Seri Wong Khen Thau, the president of the Federation of the Sabah Industries (FSI).- Bernama