Sabah DAP refutes the statement yesterday by Sabah Bumiputera Chamber of Commerce (SBCC) honorary treasurer Roselan Johar Mohamed and insists that the cabotage policy must be abolished.

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.

There is 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.

A few examples are paying zero income tax on earnings, being handed exclusive cargo business within domestic waters, and most recently being granted anti-competition exemption for them to cooperate together, and so forth.

In fact that’s precisely the point, we want to protect Sabahans’ welfares and 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?

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 the containerised cargo business.

Roselan conveniently left out this part or was he not well informed?

This is a slap in the face of the government’s policy; benefitting a small industry group, at the expense of the entire state of Sabah and its inhabitants.

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 doesn’t have much to export, but rather relies heavily on imports. The higher shipping costs (most importers are charged the return leg of the container as well due to lack of exports) 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.

Sabah should build up its export capacity.

While it’s true that Sabah should build up its export capacity to better counter the heavy import situation (trade imbalance), this takes time, and shouldn’t be used as an excuse not to at least review the cabotage policy.

Could Roselan elaborate and give more details of his ‘cooking oil’ analogy with POIC.

How many containers of cooking oil or corn for that matter would Sabah be able to export to peninsular Malaysia to achieve an even trade balance?

Surely a man of his positions with SBCC and BIMP-EAGA BCM, would have reliable data in his hands before making any statement?

JUNZ WONG is Likas assemblyperson and Sabah DAP organising secretary.