Import and export difficulties in Labuan started on July 16, when all visiting local and foreign ships were required to stay in quarantine for a minimum of 14 days to a maximum of 21 days.
KUCHING: Newly-formed Labuan Economic Sector Coalition called for dialogues with relevant authorities and stakeholders to formulate fair standard operating procedure (SOP) requirements for the shipping industry at the island.
The coalition expressed its concerns on the prospects facing Labuan due to application of the SOP requirements, which are causing shipping firms and related major economic sectors to slow down or completely halt their activities on the island.
Labuan is first among territories and states in Malaysia to have fully-vaccinated over 80 per cent of its population and achieved herd immunity.
The coalition’s lead facilitator Daniel Doughty said that import and export difficulties in Labuan started on July 16, when all visiting local and foreign ships were required to stay in quarantine for a minimum of 14 days to a maximum of 21 days.
He said merchant ships have shown reluctance to visit Labuan to avoid paying substantial charges triggered by a prolonged stay at the port due to the quarantine rule.
“The new SOP has also disrupted the supply chain security for more than three weeks despite marine transportation being included in the essential services by the National Security Council,” Daniel said in a statement.
As a result, he said parts and machinery supplies as well as oil and gas production are affected, while ship yards are burdened with losses of contracts and delay penalties.
“All of this disappointment and frustration can be easily solved if Labuan’s District Disaster Management Committee is willing to have a dialogue with the stakeholders and formulate a winning SOP for all parties, and also recognize that we cannot expect to have an SOP to fit all types of business operations.
“It does not work and the impact in the long run, is towards the Labuan community and not just the businesses,” he added.
Appeals to the District Disaster Management Committee (JPBD Labuan) and Federal Territory Ministry by various parties here have been left unresolved, and shipping SOP requirements that were updated have not been favourable despite Labuan successfully moving on to Phase 3 of the National Recovery Plan due to its splendid record in managing Covid-19.
“All of this disappointment and frustration can be easily solved if JPBD Labuan is willing to have a dialogue with the stakeholders and formulate a winning SOP for all parties, and also recognise that we cannot expect to have an SOP to fit all types of business operations.
“It does not work and the impact in the long run, is towards the Labuan community and not just the businesses.”
Daniel said the shipping industry as well as the oil and gas sector were presently the most significant pillar of the local economy as these were the main source of income and livelihood for most of the people in Labuan while the tourism sector is still inactive.
“We urge the federal government and relevant authorities to address and solve this matter immediately, before it inevitably deals a severe blow to many other essential sectors in a chain effect,” he added.
The Labuan Economic Sector Coalition members comprise various associations and business organisations including Labuan Freight Forwarder Association, Sabah Shipping Agent Association, Malaysia Offshore Support Vessels Owners Association, Malaysia Shipowners’ Association and Petronas.