KOTA KINABALU: The decision to stop merchant vessels from the Philippines to come in and conduct barter trade in Sabah will be reviewed.
Assistant Finance Minister Datuk Ramlee Marahaban said the state government would also discuss whether the ban should include ships from Indonesia.
Ramlee informed the State Assembly that although there was no apparent security threats caused by Indonesian merchant ships, they too were linked to smuggling activities in Sabah.
“Barter trade activities have opened up opportunities for smugglers and activities that can jeopardise state security. The government decided to suspend barter trading because of the recent (kidnapping) event.
“In fact, there had been several incidents prompting the government to do so… The decision is necessary. However, the government will review its decision whether to include Indonesia,” he said.
Ramlee was replying to a question from Sri Tanjong assemblyman Chan Foong Hin (DAP) who asked whether barter trade activities between Tawau and Indonesia would be excluded, noting that the ban would affect the export of fish.
Chief Minister Datuk Seri Musa Aman announced on April 6 that barter trade between Sabah and neighbouring countries would be halted with immediate effect as part of measures to tighten security and prevent further kidnappings by Filipino armed groups in Sabah waters.
This came following the abduction of four Malaysian sailors whose tugboat they were travelling in was stormed by Filipino gunmen in Ligitan waters off Semporna on April 1.
Sabah police commissioner Datuk Abdul Rashid Harun said kidnap-for-ransom groups had adapted to Eastern Sabah Security Command’s (ESSCom) tight security control within Sabah waters by shifting their focus to areas closer to the borders and targeting slow moving vessels that they could quickly intercept and board.
Meanwhile Datuk Au Kam Wah (Gerakan-Elopura) in his debate said the stoppage of barter trade would add to the already suffering economy of Sandakan but stressed that he supported the ban as it was a necessary security measure.
He noted that the business outlook in Sandakan was worrying with a an estimated decrease of 40 to 60 per cent this year, following the fall of the Ringgit and the introduction of the Goods and Services Tax (GST).
He said many businesses had to lay off some of their workers just to stay afloat.
“Apart from palm oil, we are very dependant on tourism activities but this too has been affected by security issues. The ban on barter trade, which we fully support, will also affect the economy in Sandakan,” he said.
Au said this when he called on the local authority to postpone any plan to introduce parking fees in Sandakan, saying it would further burden the people in the district, especially the low income groups who were already struggling to cope with the increasing cost of living.
“The start up salary, even for graduates is only between RM1,200 to RM1,500 and the pay for the working class in the private sector in general is very low. This puts pressure on the workers who have to pay high costs for transportation, rents, utilities and food.
“Asking them to pay even more by introducing parking fees is not right, not in this economy. People have to use their own vehicles to commute to work daily not because they can afford to do so but because public transportation is not up to standard and highly unreliable,” he said.
Charles Pang Su Pin (LDP-Karamunting) when debating the government policy speech, said the decision to adopt the ban was appropriate as barter trade with the southern Philippines was no longer relevant.
He said Manila itself considered the barter trade activities as a platform for smugglers to transport goods between Sabah and the Philippines.
“When these merchant vessels cross into Sabah border, they have technically committed an offence. When the ships sail back out laden with goods from Sabah, they can be considered as smugglers.
“In fact, the term barter trade is no longer applicable today as these ships normally arrive in Sandakan without any load but only cash to buy products to be brought back to the Philippines. Additionally, immigrants have been using these ships to come in and stay here illegally.
“It is appropriate that this activity be upgraded to a conventional export-import trade governed by international laws,” he said.