(AFP) A surge in cargo robberies, sometimes targetting computer chips worth millions of dollars, could force producers to relocate their plants, transporters and manufacturers warned today.

Walter Culas, president of the Airfreight Forwarders Association of Malaysia told AFP that Malaysia is stigmatised as having the highest rate of these crimes in Southeast Asia.

"Malaysia has the highest rate of incidents. You don't see this happening in Thailand, Indonesia, Cambodia or Vietnam " he said.

Culas, who represents Malaysia at the International Federation of Freight Forwarders, said Malaysia often draws flak during international dialogue sessions .

"They all talk about hijackings and robberies in Malaysia and that is embarassing," he said.

Culas said a meeting Wednesday with the Malaysian International Chamber of Commerce agreed to pen a letter to Rafidah Aziz, international trade and industry minister, to demand tough action.

"Security authorities have labelled the hijackings and robberies as non-priority issues.

"It is a serious issue. It affects our economy. If the manufacturers cease operation, workers lose their jobs and it is revenue lost to the country," he said.

Huge losses

Statistics compiled by the Malaysian International Chamber of Commerce and Industry among its 1,000 members reveal that hijackings of roadfreight and warehouse break-ins have incurred losses running into millions of dollars recently.

Last year, there were 60 cases, with losses amounting to RM8 million compared to 28 cases in 1999, with losses worth RM1.6 million.

From January to October this year, 30 incidents were reported with losses worth RM5.8 million, the New Sunday Times reported.

The police have said they are aware of the problem and its damaging impact on the economy and are doing their best to beat it.

But police assurances brought little comfort to manufacturers.

Shaik Abbas, chief executive of the confederation of Malaysian Tobacco Manufacturers, told AFP that despite police cooperation, incidents continued to soar.

"We hope police will take tough action. The number of incidents is not going down. The figures are disturbing," he said.

Abbas said over the years Malaysia has also gained notoriety in piracy and smuggling of contraband goods.

"We may have to do something or else we will lose investors' confidence," he said.

No actions

Abbas warned that manufacturers could shut their plants in Malaysia and shift to countries that would provide security if Malaysia did not address the problem immediately.

"If there are places that offer better security and lower operation cost, they will move out," he said.

Culas lamented that the authorities had failed understand the magnitude of the crisis, preferring "to sweep the problem under the carpet".

"I hope someone in the government will open their eyes to put a stop to the hijackings and robberies," he added.