Hornbill Unleashed

May 9, 2017

CM hopes scrapping of cabotage policy will reduce cost of goods

Filed under: Politics — Hornbill Unleashed @ 8:02 AM

Chief Minister Datuk Amar Abang Johari Tun Openg is hopeful that the abolishment of cabotage policy as announced by the Prime Minister Datuk Seri Najib Tun Razak will reduce the cost of goods and help weather the rising cost of living in Sarawak.

“We thank the Prime Minister (Najib) for deciding to abolish cabotage policy that will hopefully reduce cost implication because it avoids double handling.

“I know a certain sector is not happy but we have to consider the needs of the consumers. Hopefully it will reduce the cost and will help weather the rising cost of living,” he told reporters after chairing a state Barisan Nasional pre-council meeting here yesterday.

The State Legislative Assembly sitting this time will be held from May 11 to 22. Najib yesterday announced in Sabah that the cabotage policy that limits the shipment of goods from Peninsular Malaysia to Sarawak and Sabah to only Malaysian-flagged ships would cease by June 1.

He said the 30-year-old policy was scrapped following calls from Sarawak and Sabah leaders.

However, Najib said the policy would still be applicable to cargo shipping operations within Sabah, Sarawak and Labuan.

The cabotage policy was introduced in the 1980s as a way to promote Port Klang as the nation’s main trans-shipment hub as it would require goods from outside the country to go through that port before being shipped to Sarawak and Sabah. The shipping policy has been blamed for the higher cost of goods in Sarawak and Sabah.

Last February, Transport Minister Datuk Seri Liow Tiong Lai said his ministry was agreeable to review the cabotage policy.

Source : @ The Borneo Post Online



  1. With a weakened ringgit and GST the cost of all goods have remained high regardless of the cabotage policy. With the exemption of the cabotage importers have more choices of shippers, both foreign and domestic. Some shipments had already been shipped directly to Sarawak and Sabah ports. The other cost of goods are halal certifications and taxes on non halal products.

    Comment by Simon Abbey — May 9, 2017 @ 10:05 PM | Reply

  2. I can bet with my last ringgit that the prices for a broad range of goods will remain the same. The protectionism and monopolistic policies shall ensure the prices for cement, steel and steel pipes remain higher than imported ones.

    Comment by Mata Kuching — May 9, 2017 @ 12:41 PM | Reply

  3. Don’t just hope … otherwise prices will continue to go up. I hope it will not be NATO

    Comment by tigeryk — May 9, 2017 @ 10:26 AM | Reply

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