We want to protect Sabahans welfares & interests by removing protection to the protected shipping industry! Why should the government allow these protected shipping companies to continue to earn lucrative profits in the expense of all Sabahans? ~~~ Junz Cabotage policy must be abolished ! DAP Sabah Organizing Secretary Junz Wong refuted Sabah Bumiputera Chamber of Commerce (SBCC) Honorary Treasurer Datuk Roselan Johar Mohamed yesterday statement and insisted that Cabotage policy must be abolished. Datuk Roselan claimed that the abolishment of the cabotage policy as a solution to address the disparity in prices of goods between Peninsular Malaysia and Sabah and Sarawak might do more harm than good to the shipping industry. Roselan also said by doing away with the policy, foreign shipping companies would find it an opportunity to get involved in the domestic trade. Junz said that there was nothing wrong in allowing foreign shipping companies to come in when domestic shipping companies refuse to grow after almost 30 years of exclusive presidential treatment. Junz quoted few as examples such as paying zero income tax on earnings, being handed exclusive cargo business within domestic waters and most recently granting of anti-competition exemption for them to cooperate together and so forth. In fact thats precisely the point, we want to protect Sabahans welfares & interests by removing protection to the protected shipping industry! Why should the government allow these protected shipping companies to continue to earn lucrative profits in the expense of all Sabahans? Junz asked Junz claimed that rather, after all these billions of Ringgit in preferential treatment, most domestic shipping companies have chosen to outsource the volume to foreign ships, or hire more foreign sailors, or even in the case of MISG choosing to get out of containerised cargo business. Roselan conveniently left out this part or was he not well informed ? This is a slap in the face of governments policy; benefiting a small industry group, at the expense of an entire Sabah state & its inhabitants. Junz said Secondly Junz Wong who is also ADUN LIKAS claimed that the price disparity arises because of the monopolistic pricing behaviour of shipping companies with exclusive control of the domestic sea trade. This is more so when Sabah doesnt have much to export, but rather rely heavily on imports. The higher shipping costs (most importers are charged the return leg of the container as well due to lack of export) are invariably passed on to consumers. Removing cabotage policy will no doubt increase competition, and ensure fairer pricing for all and most importantly restore justice to Sabah and Sarawak. Junz said On the other hand, Junz agreed with Roselan that Sabah should build up its export capacity. While its true that Sabah should build up its export capacity to better counter the heavy import situation (trade imbalance), this takes time, and shouldnt be used as an excuse not to at least review cabotage policy. Junz said Junz hoped Roselan could enlighten him by elaborating more details of his cooking oil analogy with POIC. How many containers of cooking oil or corns for that matter would Sabah be able to export to Peninsular Msia to achieve even trade balance? Surely a man of his positions with SBCC and BIMP-EAGA BCM, he would have reliable data in his hands before making any statement? Junz asked
Posted on: Fri, 04 Jul 2014 03:30:47 +0000
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