KOTA KINABALU: Exempting Sabah and Sarawak from the cabotage policy reflects a caring government as our state needs to enhance its connectivity with other states and neighbouring countries, especially in Brunei, Indonesia, Malaysia and the Philippines – East Asean Growth Area (BIMP-EAGA), said Deputy Chief Minister Datuk Seri Panglima Raymond Tan Shu Kiah.
“Logistics is an important element of the economy, particularly in Sabah and Sarawak.”
Nonetheless, Tan, who is also the Industrial Development Minister, said he was looking forward to see whether the exemption would lower the price of goods in Sabah when it came into effect on June 1, given that the cabotage policy was claimed to be the cause of more expensive goods in East Malaysia.
“Many of our leaders claimed that the cabotage policy has driven up the price of goods by up to 30 per cent, but I cannot determine whether that is right or wrong.”
Tan said the government’s decision to exempt Sabah and Sarawak from the cabotage policy showed that the government was attentive to the response and requests by many quarters who claimed that the policy was problematic.
“I hope the price of goods will decrease from June onwards.
“Many have claimed that the policy was problematic and we have had debates at the State Legislative Assembly and Dewan Rakyat on whether the cabotage policy was the reason the price of goods was higher in Sabah and Sarawak compared to Peninsular Malaysia.”
He said the complaint had always been that because of the cabotage policy, everything was more expensive in Sabah and Sarawak, including housing.
“If the cabotage policy is the cause of the problem, then the abolition of the policy in Sabah and Sarawak is very good news for us,” Tan said.
He was asked to comment on Prime Minister Datuk Seri Najib Tun Razak’s announcement that Sabah and Sarawak would be exempted from the cabotage policy starting June 1, after officiating at the Malaysian Entrepreneurs Festival (TMEF) here yesterday.
“I’ll keep a close eye starting June to see whether the price of goods has gone down in Sabah.
“If things are going to be cheaper, then it is something all of us will be happy about.
“Although some quarters have different views, there is no point to debate on this matter any more because the government has decided that no more cabotage (policy) or restrictions in Sabah and Sarawak.”
On the call made by the Sarawak and Sabah Ship-owners Association and Sarawak Shipping Association for the government to review its decision to exempt Sabah, Sarawak and Labuan from the cabotage policy introduced in the 1980s, Tan said the government would need to strike a balance between improving the economy of East Malaysia, especially in the logistics and transportation aspects and at the same time, address the concerns of shipping line operators.
He said the government must be aware that it could not move towards improving the economy of the states but made it difficult for shipping lines to operate.
“We need the shipping lines to be healthy and operating as well, otherwise, there will be no vessels coming to Sabah and Sarawak. That will be a problem.”
Tan said competition in a positive way, which could grow the economy, would be good.
“Let the cake gets bigger. If the cake gets smaller it becomes a monopoly. Let the cake gets bigger so that every shipping operator will benefit,” he said.