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Warisan: Cabotage scrapping pointless if licences still needed
Published:  May 8, 2017 5:03 PM
Updated: 1:19 PM

The lifting of the cabotage policy for Sabah and Sarawak would be pointless if international shippers still need to obtain domestic shipping licence to send their goods directly to the ports in the two Borneo states, said Parti Warisan Sabah.

Prime Minister Najib Abdul Razak yesterday announced the scrapping of the policy, which has been blamed for higher cost of goods in East Malaysia, starting June 1.

Warisan vice-president Junz Wong said the policy cannot simply be scrapped without legislative change as Section 65 of Marine Shipping Ordinance 1952 requires all vessels engaging in local shipping to obtain a domestic licence.

"Isn't it too much a fairy tale when Najib announced that it would be effectively applicable and practically workable on the ground on June 1 without amendment of any laws?" the Likas assemblyperson asked.

Under the cabotage policy, all domestic transport of goods in Malaysia must be done by Malaysian vessels, and as such all goods would arrive via Port Klang...

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