Kota Kinabalu: Manufacturers in Sabah are urging the Government to revive barter trade between the State and Southern Philippines to revitalise the local economy and foster stronger regional commercial ties.
They believe that current economic conditions and improved regional stability provide a timely opportunity for its revival.
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“Re-establishing this link will serve as a significant catalyst for growth for the State’s manufacturing sector and the broader local business community, and offer mutually beneficial solutions for both regions,” said Liaw Hen Kong, Sabah Chairman of both the Federation of Malaysian Manufacturing (FMM) and the Malaysian Plastics Manufacturers Association (MPMA).
He was commenting on Chief Minister Datuk Seri Hajiji Noor’s statement that the State Government is studying a proposal to revive barter trade between Sabah and southern Philippines.
Liaw said Sabah produces a wide range of food and beverages, construction and plastic products that are in high demand in the Philippine market, which translates to market expansion for local manufacturers.
He noted that Sabah’s proximity to Southern Philippines allows significantly lower logistics costs compared to other international routes.
“This ensures that essential goods remain affordable for communities in Southern Philippines,” he said.
He added that a surge in trade activity will stimulate local ports, logistics providers and small-to-medium enterprises (SMEs) in Sabah, creating jobs and increasing state revenue, thus boosting the local economy.
“Resuming formal trade activities encourages diplomatic cooperation and enhances regional security through economic interdependence, thus strengthening bilateral ties,” said Liaw.
Liaw is expected to lead a delegation from MPMA to Zamboanga sometime early July to engage with the Tawi Tawi Mayor, Governor and industry leaders.
