Tuesday, 20 March 2012

Kong quit for ‘insulting Sabahans on the Cabotage’

KOTA KINABALU: Luyang Assemblywoman, Melanie Chia said Transport Minister Datuk Seri Kong Cho Ha should resign is Transport Minister if he does not know his job. 

Chia also said the Minister should stop protecting the few companies privy in the national shipping industry at the expense of Sabahans.

Chia was responding to Kong's assertion on Saturday that Sabahans have a misconception and misperception about the country’s cabotage policy.

"The Minister obviously did not understand the issue raised repcatedly by the business communities in Sabah on the cabotage policy which was introduced in 1980.

"For him to say we do not understand the cabotage policy is really belittling Malaysians in Salah,” she said in a statement Monday.

Chia said businesses in Sabah have to incure higher costs due to the extra shipping costs due to the implementation of the policy.

"This policy has directly and indirectly resulted in the higher costs of goods for Malaysians in Sabah, she said, adding it is also a policy which trade associations, especially exporters in the State, put their fingers on for increasing the prices of, exports from Sabah to overseas countries rendering our goods not competitive,” she said. 
 
She said as Transport Minister, he should have at least had meetings and discussions with the trade associations in the State before making such utterance, which hurts the intelligence of the people in Sabah.

As the Minister in charge of transportation policy in the country, it is unthinkable that he does not know the business community’s views on the subject, she said.

“SAPP wants the cabotage policy abolished so that all vessels, be it Malaysian or foreign, to be able to call at all ports in Malaysia. Sabah, would be able to, benefit from this especiall with the strategic location of Kota Kinabalu in the Far East.

"If the federal Government is serious about the development of Sabah, it should consider the plea of the business community without further delay," she said.

Daily Express
Tuesday, March 20, 2012
Page 2

45 comments:

  1. If the cabotage policy is a burden and unfair for Sabahans, then it should be abolished. It doesn't need a genius to see the problems.

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    1. the cabotage policy is a burden for sabahan...so it should be abolished..

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    2. Jadi haraplah kerajaan akan mansuhkan sistem yang membebankan ini.

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  2. The government should re-visit the cabotage policy and see how to improve and fairer to Sabahan .

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    1. the policy should be review..people's interest must come first..

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  3. polisi kabotaj ini menyebabkan harga barangan di sabah melambung jauh lebih tinggi daripada di semenanjung...dan ini membebankan rakyat sabah terutama bagi golongan berpendapatan rendah..diharap kerajaan akan memansuhkan polisi ini yang mana tidak memanfaatkan rakyat selari dengan konsep rakyat didahulukan, pencapaian diutamakan.

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    1. The original purpose of having the cabotage policy is to make Malaysia a Maritime Nation, Reducing the country's dependence on foreign ships by increasing the level of participation in Malaysia international and coastal shipping business; Engage in shipping commitments through bilateral, regional and other trade agreements, Training and development of Malaysians in technical, professional and commercial
      aspects of shipping business, especially in regard to the Malaysianization of floating staff and support to higher educational institutions.

      I'm sure some of them are still relevant in current time, however a review to ensure that it is still relevant is needed. Hopefully the government will do what is best for the people and the shipment industry.

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  4. Bnayak yang tak puas hati dengan polisi ini, so kerajaan haruslah lakukan sesuatu demi menjaga kepentingan rakyat.

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  5. Keluhan rakyat haruslah didengar. Saya yakin demi rakyat, kerajaan haruslah mengkaji semula polisi ini.

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  6. Go and and check why it was introduced in Sabah.
    Time has changed ,perhaps time to review in accordance to present situation.

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    1. The Cabotage Policy was introduced initially because only a small number of Malaysian registered ships were playing the coastal routes.

      The purpose is to encourage local participation in domestic by encouraging local registration of ships and local incorporation of companies participating in domestic shipping.

      I think its good to have a review on this policy to ensure that it is still relevant to current times and reduce the impacts on the local Sabahans.

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  7. Kong must explain further for his views on the Cabotage system to clear up any confusion amongst the people.

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  8. PM cakap 1 malaysia,kita pun tidak tahu apa ini 1 malaysia sedangkan kehidupan kita ini terlalu banyak polisi sebagai contoh sistem cabotage ini dan yang paling ketara,pekerja awam dari semananjung kalau datang ke sabah elaun rumah mengalah kan gaji tapi kalau penjawat awam dari sabah kerja di semananjung elaun rumah tidak cukup untuk membayar rumah flat dan terpaksa ambil dari gaji mereka ini kah 1 malaysia? bagus lagi slogan 1 malaysia buat pengesat tahi atau pembungkus goreng pisang.

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  9. He has denied giving inaccurate information to the people in Sabah regarding the Cabotage policy. he said he understood the needs of Sabah people and the government had wanted a win-win situation for all stakeholders, particularly the people in Sabah

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  10. This comment has been removed by the author.

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  11. Govt was fully aware of complaints that the policy was stifling the State economic growth, particularly in the manufacturing sector. Govt want every part of the country to grow economically and that is why the ministry need to look into these issues.

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  12. sebaiknya polisi ini dikaji semual kerana ramai yang tidak berpuas hati dgn polisi ini.

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  13. Mengenai polisi ini rasanya perlu diterangkan lebih kepada rakyat. Ini bagi menepis pelbagai tuduhan dan khabar angin yang dilemparkan oleh pihak lain.

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  14. 1 Malaysia..Maka jika semanjung mengunakan 1 Malaysia pasti Sabah juga begitu. Tapi 1 Negara tapi harga pula 2 harga berbeza. Mungkin ini yang menjadi persoalan yang timbul. Jika ikut logik pun 1 Negara maka 1 Harga.

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  15. Nampaknya kerajaan perlu memberikan sama rata mengenai gaji dan elaun yang diterima oleh penjawat awam. Sebagai contoh elaun perumahan pasti berbeza untuk penduduk semenanjung ke Sabah dan penduduk Sabah ke semanjung. Jadi apa salahnya semua mendapat sama rata dan adil. Ini bagi kebaikkan semua.

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  16. Semoga apa masalah yang dihadapi di Negeri Sabah akan di selesaikan. Mengenai polisi cabotage ini rasanya kedua-dua pihak perlu membuat kajian dan perbincangan. Ini menyebabkan harga kos meningkat bila datang ke Sabah.

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  17. Kerajaan persekutuan perlu mengimbangkan mengenai kadar barang ini yang berbeza antara Sabah dan Semanjung. Pasti kerajaan dapat melakukannya.

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  18. if you really want to abolish it, so why don't you abolish it during YTL tenure as Chief Minister of Sabah??

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  19. the cabotage policy is a policy that is practiced by many nations worldwide including developed nations. for some of these nations, it is so strictly implemented that no foreign-owned vessels are even allowed to operate within their domestic waters.

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  20. the cabotage policy does not at all prohibit vessels from foreign ports to call directly to/from any Malaysian port including ports in Sabah and Sarawak. For example, a vessel from Singapore or Hong Kong is free to call directly to/from any Malaysian port such as Sepanggar, Bintulu etc.

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  21. the high costs of goods cannot be blamed solely on the cabotage policy without also referring to the total costs of transportation and logistics ashore including port costs and the high surcharges in Sabah.

    the low productivity at the ports in Sabah also adds towards additional shipping costs. freight is only one component which makes up 46% (from a study by Malaysian Shipowners Association) whilst others such as forwarding, trucking, storage etc make up the rest...

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  22. It is better to discuss with the Ministry of Transport ways to reduce the freight charges for cargo from Port Klang to Sabah instead of debating on the cabotage policy.

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  23. Both Industrial Development Minister Datuk Raymond Tan and Assistant Minister to the Chief Minister Datuk Edward Khoo agreed that the issue at hand was the cargo and freight charges. "The Minister must find out from the operators, the industry players, it is not the ship, it is the cargo.

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  24. So let's look further and find out if it is the problem with the cargo.

    ed.

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  25. "What is the meaning of already liberalised if you have problems connected to cabotage. To me it is liberalised, it is open," said Tan

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  26. Tan said he had discussed with the Federation of Sabah Manufacturers (FSM) on the issue before and that the KK Port is already liberalised, meaning foreign ships can come.

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  27. "The issue here is the cargo. Foreign ships do not carry domestic cargo," he said.

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  28. He said cabotage is a law under the Shipping Act and if it was to be amended, it must go through the proper procedures in Parliament.

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  29. "It is not a practice or a policy, it is a law. And the Minister can help to liberalise, that means the cabotage under the law will not be applicable to certain destinations, which in this case I think the Ministry of Transport has liberalised.

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  30. "KK and Sepanggar are liberalised ports. But the issue is on the cargo, then we have to work with the ministry and (FSM President) Datuk Wong Khen Thau to find out what sort of cargo they are talking about.

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  31. "Is it that the foreign ships cannot carry domestic container or just foreign containers?" he asked.

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  32. "The Minister can actually help. Datuk Seri Kong Cho Ha is right, it is already liberalised but maybe he wants to know from the industry players if it is the cargo they are worried about," he said. Tan said it was a different issue altogether if a foreign ship calling on Port Klang was just carrying domestic goods to Sabah and if it was carrying goods coming from Hong Kong or China. Tan said there is no more cabotage in Sepanggar Port.

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  33. "The foreign ship can carry anything, the only thing I'm not sure is what kind of cargo they are talking about. Is there a condition saying that foreign ships cannot carry domestic containers?

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  34. That is what the Minister has to look into," he said.

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  35. On the request by FSM that Sabah be given 25 years tax exemption in compensation of the implementation of the cabotage policy, Tan said it was illogical.

    "I cannot see the logic on this proposal because the Government has been promoting investment and already gives incentives to any investor.

    This is a standard programme.

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  36. "All investors in KKIP or POIC for example, they are already given tax incentives on pioneer status. They are given even better incentive packages through MITI, MIDA which include the training of their workers and site preparations.

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  37. "That is why now the figure of investors coming into Sabah is going up.

    Sabah is doing well, we in 2011 already have small and big investors coming into Sabah accumulating an investment value of RM1.1 billion, and this is not taking into account oil and gas which would amount to billions of ringgit," he said.

    Tan said investments and businesses coming in were not a problem and when more people were coming in to invest it means they have confidence that the system in Sabah was working. "We look at it very seriously.

    I think the Transport Minister can help, maybe he can come and sit down with the business community. I will be happy to be with the Minister to sit down with the business community and highlight issues.

    "We do that every year with the Minister of Trade.

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  38. We sit down and discuss but it is not something we fight about in the newspapers," he said.

    Khoo said Tan pointed out there was some misunderstanding as to where the problem is.

    At the same time, he also fully supported the stand by Deputy Chief Minister Tan Sri Joseph Pairin Kitingan asking the Federal Government to temporarily suspend the cabotage policy to Sabah.

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  39. Khoo said back in 2009, he was the one who brought the State's stakeholders like Wong to meet with the previous Transport Minister in Parliament, which resulted in the partial liberalisation of the cabotage policy allowing foreign vessels carrying cargo to Port Klang to also come to Sabah.

    However, Khoo who is Sabah MCA Chief said he was told there were about eight or nine domestic shipping companies carrying domestic cargo to Sabah and importers claimed they are overcharging.

    "The freight charges are very high, I think the Ministry of Transport should look into this also," he said when met outside the State Assembly.

    "The gist of the problem is that we are paying unusually high freight charges from Port Klang to Sabah. So whether it is a temporary suspension of the cabotageÉmake the freight charges reasonable for all Sabahans.

    That is more important," he said. He said the State Government was very committed in resolving the issue and in fact the Chief Minister had raised the matter in the Cabinet as well as post Cabinet meetings to be discussed.

    "We request the Ministry of Transport to also try to control the freight charges to Sabah. Make it reasonable. We leave it to the Federal Government to find a way to regulate the freight charges," he said.

    "We agree with the stakeholders it has been too long already that they are paying these extremely high freight charges. I will continue to help the State Government with this. All of us are committed," he said.

    Meanwhile, Deputy Minister in the Prime Minister's Department Datuk VK Liew said the Transport Minister had given his view but "I do not necessary agree with him".

    He said he was fully aware of Kong's statement on the cabotage policy and that it was one of his subjects of concern when he was the Deputy Minister of International Trade and Industry (MiTi).

    "I believe there are pros and cons in the issue that we need to actually address.

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  40. "I think there is room where we need to handle the situation for the benefit of the Sabah people. There are issues in the cabotage policy not favourable to us.

    "We need to sit down because this cabotage policy is a Federal matter that we need to address at that level. Datuk Wong has also visited Miti and me during my time as the Deputy Minister in Miti and I fully symphatised with him and also the grievances faced by the people of Sabah.

    "We will have to look into the concept of cabotage policy, whether it is still relevant to the needs of Sabah," said Liew, who is also President of Liberal Democratic Party (LDP).

    "We cannot decide on this unilaterally. We need to sit down to come out with the best solution that benefits both sides. This has been going on for far too long," he said after opening the LDP West Coast Operations Room in Taipan, Inanam near here, Thursday.

    "In any form of policy there is bound to be pros and cons, you cannot simply set it aside and say this is no good. Otherwise how can it be around for so long?" he asked

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