Shipowner: "Scrap cabotage policy? No, no, no.."

Guong

Kota Kinabalu: The Malaysia Shipowners Association (Masa) said it will resist any attempts to remove the cabotage policy, claiming that scrapping it could cause huge collateral damage to the Malaysian shipping industry and undermine national interests. DE

Huge collateral damage? Wow, I didn't know that the trade route between the peninsula and Sabah & Sarawak have such impact. What about other domestic trade route? It means they are making huge sum of money with this route to the extent they are willing to resist any attempts to scrap this policy. What about Sabahan and Sarawakian then? Let us keep on suffering just so they can keep doing business?

Masa Chairman Nordin Mat Yusoff said if high shipping cost was the only reason, one could assume that when shipping cost declines, the prices of goods would likewise drop.

"But this has not been the case; total ocean freight rates declined by about 41 per cent in the last six months in Peninsular Malaysia-Sabah/Sarawak trade but this has not been reflected in the landed prices of consumer goods," he said in a statement.DE

Really? But it was just six month ago, one can't expect to feel immediate effect on the declined rate. It would take more than a year since the shipped goods would still be in the local market. No businessman would be stupid enough to drop their price of goods since most of the old stocks (which were shipped before the now declined rate) were probably not yet sold out.

However, Nordin said it is evident that the high prices of consumer goods have not been elastic and the cause for this must be investigated scientifically by relevant government agencies in the State, including the Domestic Trade Ministry and Mida. DE

Investigation again? How long will it take? Sabahan and Sarawakian have waited long enough. Even the Queen Elizabeth Hospital issue is still yet to be solve, let alone this huge issue involving all of West Malaysian.

He also said it was extremely misleading, and indeed callous, for anyone to suggest that shipping charges from Kota Kinabalu to Southampton as being twice that of similar charges from Port Klang to Southampton because of the cabotage policy.DE

Who said the price was being twice? But it's a fact that the price will be higher than what it was supposed to be since they ship it twice.

"In fact the argument against the cabotage policy cannot be more wrong because cabotage does not prevent any ship from calling between Kota Kinabalu and Southampton much as it does not between Port Klang and Southampton," he said. DE

Yes, but that applies only to Malaysian vessels that ship imported goods. Ships from Southampton (or any other part of the world) are permitted to sail to Sabah and Sarawak but not cargo ships. And how many Malaysian-flag ships that dock in Sabah and Sarawak are actually making a direct shipping route outside Malaysia? I can only think of MISC.

Alluding the furore to "barking up the wrong tree", he explained the removal or relaxation of the cabotage policy would in no way change this position because the question of shipping lines serving between KK and a foreign port would be influenced by, among other factors, volume of cargo, remoteness (geographical) of the market and port infrastructure and performance. DE

Yes, but the problem is, all the factors that influencing the price are done twice due to this policy. Why not shorten it into just once?

Urging the manufacturers and producers not to confuse the central issue, he said Masa was willing to sit down with relevant government agencies as well as manufacturers and producers in Sabah and Sarawak to help jointly identify and examine related costs in the transportation pipeline together with other players in the link. DE

Feeling the heat are we.. You guys better do it quickly and come out with an acceptable solution. If not, this cabotage policy between peninsula and Sabah & Sarawak must be scrap.