Kota Kinabalu: The cabotage policy exemption for shipping goods between Port Klang, Kuching and Kota Kinabalu is due to take effect in 72 hours, but already a new confusion has arisen – whether the exemption is for good or only for a trial six-month period.It stems from Sarawak Deputy Chief Minister Tan Sri James Masing's remarks that a decision on whether the policy would be abolished altogether would be made after six months.Daily Express contacted the Press Secretary of Transport Minister Datuk Seri Liow Tiong Lai, Lim Chau Leng, who said that as far as his boss was concerned there was no mention of a trial six-month period by either the Prime Minister or Transport Minister.
ADVERTISEMENT
But when asked if the Ministry should issue a clarification, he said it was not necessary.Opposition Parti Warisan Sabah questioned the government's sincerity in giving Sabah and Sarawak a six-month exemption.Its Vice President Junz Wong saw a connection between the coming general election and the announcement of the cabotage suspension."It's an election sweetener as cabotage has always been a hot issue during election," he said, aware that the policy was blamed as a reason goods in Sabah and Sarawak are more expensive than in Peninsular Malaysia.
ADVERTISEMENT
He described the exemption as a "farce" and said Putrajaya should not take Sabah and Sarawak for a ride with "half baked" promises."Why do we need a six-month exemption and then adopt a wait-and-see approach?
ADVERTISEMENT
Why should Sabahans and Sarawakians pay more for goods? To protect some shipping companies? That's ridiculous. The policy should just be abolished," he said, in a statement.Masing had said that abolishing the policy could deprive local shipping companies of business and pose security threats as international vessels could call on local ports.Wong, who is also Likas Assemblyman, questioned why the exemption period was set at six months and not a year or two years."The Federal Government has had 30 years to study the impact of the abolishment of the cabotage policy. Why does it want to test the waters only now? "Is this a sign that the election may be held within six months since the cabotage policy has always been an election issue?" he asked.Some political analysts have forecast that the 14th general election, which must be held by August 2018, could take place this October with Barisan Nasional expected to bank on the 'feel good' factor after the Malaysia Day celebrations, Hari Raya festivities and the South East Asia Games.According to Wong there are also analysts who believe that Najib will wait until the end of the government's current term to call for the election to give his cousin and Umno vice-president Datuk Seri Hishamuddin Hussein more time to make his mark as the Minister with Special Functions, a role which some say is to prepare him for the Prime Minister's post.Meanwhile, the newly-launched Sabah Employers Association (Sea) feels the cabotage policy exemption is likely to last more than six months despite the statement from Masing that the policy exemption for Sabah, Sarawak will only be for six months "You won't see much results in six months, this is not a tax policy. If for example the GST is reduced tomorrow by one per cent, that is a direct bearing on the goods which is very fast. "If the government imposes a reduction in company tax of 26 to 24 per cent, it is then likely you have a direct impact on the pricing."This cabotage policy is not like that. This policy needs to have a trial run for at least one or two years then you will see the results," said Sea President Datuk Seri Wong Khen Thau.He said at the moment there was also no direct competition or shipment from any foreign vessels. "We have to first attract foreign vessels to come and compete with our local vessels. "There is no foreign vessel coming in yet. How can you expect overnight results? "So the six months I feel is a very short time and unfair to the people of Sabah. "They already have a 37 year of cabotage, so how can you say the cabotage exemption will only be for six months. "So unlikely there will be any price reductions (within the six months period). "We would be lucky if the shipping companies aren't going to increase it as they can take advantage where foreign ships may only come in about six months to a year's time, so they may increase the shipping price as a form of retaliation. "Hopefully they won't do this. Sea will be monitoring any price increases."Federation of Sabah Industries President Datuk Mohd Basri Abd Gafar, said he was made to understand it was because the Ministry of Transport needed to make a report to the cabinet in six months on the cabotage policy exemption where a committee will also formed to look into policy exemption. "I was there at the briefing organised by the Ministry (in Kuala Lumpur) and there was no mention of it being only for six months but It was just to file the developments after the exemption to make a Cabinet report. "So I don't know where Masing made a statement in the paper that it is only for six months. My understanding is for them (ministry) to make a report and the officer did mention that normally in shipping the changes, they will let it go on until (at least) five years." Wong also agreed that it was only right that it should be so as other block exemptions that have been put in place since 2009 are still around until today. He said in 1993 Penang and Port Klang also received an area exemption and until today are still exempted. Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
