KOTA KINABALU: DAP Sabah chairman Jimmy Wong Sze Ping’s challenge to Transport Minister Datuk Seri Liow Tiong Lai and Luyang assemblyman Hiew King Cheu to abolish the Cabotage Policy demonstrates his ignorance and total misunderstanding of the policy, according to Hiew.
“He, as a ‘lawmaker’, should do his homework first before making a comment and giving others an order,” said Hiew.
He thanked Jimmy, who is Kota Kinabalu Member of Parliament, for looking so highly of him by giving him and the Transport Minister ‘an order’ to abolish the Cabotage Policy.
Jimmy had said he supported the contention that the Cabotage Policy was the main cause of a 30 per cent rise in the prices of goods in Sabah, but Hiew reminds him that whatever it is, Jimmy should do his homework first before jumping into conclusion.
Hiew said maybe Jimmy can explain further and elaborate on how the 30 per cent price hike of goods is derived from and since when.
“Just to enlighten him, the Cabotage Policy is a shipping policy practised in Malaysia to provide better shipping control. It is just a policy and not an Act, and it serves to provide shipping guidance only,” he said.
Hiew said: “The Cabotage Policy is a policy that was established in 1980, and its sole purpose is to improve and develop the shipping business owned by Malaysians, including those from Sabah and Sarawak.
“This policy is applicable to cargo transport and passengers and only limited to ships registered in Malaysia.
“This policy is a relatively liberal policy, the same as in other countries like Japan and the United States of America which is enforced fully so that foreign registered ships are not allowed to operate.
“In Malaysia, foreign ships are not allowed to operate in certain domestic routes except where local ships are unable to meet certain sector demand.
“To emphasize more, the Cabotage Policy does not stop foreign ships to operate directly from a foreign port, bringing in cargo into any Malaysian port and return. This means the direct import and export can be operated at any port in Sabah without going through transshipment in Port Klang and Tanjung Pelepas Port. Under this policy, Sabah shipping companies can apply for the licenses and will be approved after it meets the requirements,” Hiew said.
Hiew argued that the shipping charges are high because of the trade imbalance between East and West Malaysia, where there is not enough volume on the ‘backhaul cargo’ from East to West Malaysia. Empty ships leaving Sabah will definitely charge higher freight charges.
“Therefore, who would want to do business that will lose money? The end users will have to bear the cost for sure.
“Sarawakians can have their own ships to freight their cargoes to China and come back with a full load of goods, and that shows the Cabotage Policy is an open policy in certain ways as explained.
“Just for further information, the Cabotage Policy was discussed in the ‘Malaysia Logistic Council’ forum organized by the Industrial Development Authority Malaysia (MIDA). There are many more details on the Cabotage Policy which can be found from the government website and the library,” said Hiew.