A return to a ‘cabotage’ policy would lead to an increase in prices, says a businessman.
The previous administration loosened this in 2017, and in doing so, allowed foreign vessels to go directly to ports in Sabah and Sarawak without having to go through Port Klang first and incurring more costs. “In the past, industries in Sabah did not produce more goods because of the difficulty of having to export goods through Port Klang. When the policy was liberalised, we can see more international ships coming into Sabah directly,” he said.
Wong says the government should understand that local shipping companies have enjoyed protection through the policy for over 30 years. “Enough is enough, it is time for the shipping companies to grow and become competitive, the cabotage policy is unfair to Sabah.” Wong, who is also Sabah chairman of the Malaysian International Chamber of Commerce and Industry, said that local shipping companies charged more for freight sent to the state, as they imposed various surcharges.