Ong
KOTA KINABALU (July 12): Liberal Democratic Party (LDP) Vice President David Ong has urged the government to improve Sabah Port’s efficiency to help boost the State economy.
He said port efficiency is one important determinants of shipping costs.
He said an inefficient port will increase handling which will affect overall shipping costs.
“Excessive regulation and red tapes, the prevalence of organized crime, poor infrastructure and facilities of the port are common causes of inefficiency.
“Therefore, it is of utmost importance for the government to ensure Sabah ports are operating at maximum efficiency to minimize and maintain reasonable transport costs,” he said in a statement.
Ong added that freight charges is an important node for supply chain.
He said the surge of freight costs will increase the price of goods and lead to inflation.
“Rising inflation has been affecting many businesses’ bottom lines and people are feeling the pain of it.
“To avoid worsening inflation, freight costs should be kept in check.”
Following some feedback gathered from a few forwarders and traders in Sabah, Ong said Sabah Port services are not up to par and a lot of shipments are delayed due to slow custom clearance.
“Whether this is due to poor infrastructure or human resource management, this has unnecessarily disrupted business flow, making it more challenging for businessowners. This, urgently needs to be resolved.”
When cargo handling and evacuation is exceptionally slow, he said there is a high chance that carriers will make the decision to omit the port and proceed directly to the next scheduled port of call.
He said the continuous inefficiency of Sabah Port will discourage the arrival of international carriers, this will surely bring about a long-term adverse impact on our State economy.
He continued to say that Sabah Port is strategically located at heart of South-East Asia and has the potential to become a logistic hub.
“Better infrastructure and superstructure should be built to increase its efficiency, competitiveness and attract more arrival of international carriers.
“If Sabah Port does not take measures to upgrade and improve its services and management, the State may lose out on the opportunities at our doorstep with the expansion of Borneo Economy and the upcoming development of the new Indonesia capital, Nusantara.
“Sabah economy will surely be affected when international carriers choose to stop at our neighbours’ ports rather than Sabah Port.”
Hence, Ong urged the Sabah State government to take heed and look into improving the effectiveness of our port services to ensure a brighter future for Sabah.