Govt must subsidise transport to Sabah

The federal government must provide proof that freight charges have no impact on the price of consumer goods in Sabah.

TAWAU, July 9, 2012: The federal government must subsidise trans-shipment of goods to Sabah in order to standardise the prices of consumer goods in the state with that in Peninsular Malaysia.

Tawau MP Chua Soon Bui said talks have been going on for years with no solution in sight while consumers have been forced to cough up more money for goods that are cheaper in the peninsula.

"If the federal government can afford to subsidise the toll charges on federal highways for billions of ringgits, there's no reason why the same cannot be done for transport to Sabah as a result of the cabotage policy," she said over the weekend.

She said such a move was only appropriate and fair to the people of Sabah since the federal government had until today refused to abolish the cabotage policy which had resulted in a high-cost of doing business and living in Sabah.

Chua said the people of Sabah are being grossly shortchanged by the federal government despite the fact that Sabah is contributing significantly to the federal coffers through its oil and gas resources since 1976.

On the Transport Ministry's rejection that the price difference between Peninsular Malaysia and Sabah is due to the cabotage policy, she said the ministry must provide proof that freight charges have no impact on the price of consumer goods in Sabah.

Chua also admonished fellow Sabah MP Abdul Rahim Bakri for dismissing the cabotage policy as a non-issue.

She described Abdul Rahim's remark in Parliament last month in his capacity as the deputy transport minister that the issue was merely being "played up" by certain quarters, as inconsiderate and an insult to the people of Sabah.

"As a Sabahan himself, Abdul Rahim, who is the MP for Kudat, should realise that the cabotage policy is a real and pressing issue which has been the underlying cause for the high consumer goods prices, thus contributing to a high cost of living in Sabah since the policy was introduced in 1980," she said.

The cabotage policy is seen as the main cause of inflation in Sabah, with the business sector arguing that the federal policy has contributed to the high cost of doing business in the state.

The business community in Sabah, especially those in the manufacturing industry, has repeatedly denounced the policy as anti-business and has made a series of calls through the Federation of Sabah Manufacturers (FSM) for its revocation.

"I am disappointed that the federal government has no intention at all to address the high transport cost faced by Sabah and Sarawak business sectors.

Chua, who is also a vice-president of the Sabah Progressive Party (SAPP), said the government was playing with words when it announced that the cabotage policy has been liberalised.

The transport ministry claims that foreign cargo vessels can ship directly to Sabah, but at the same time says that containers once unpacked cannot be re-shipped to Sabah on foreign vessels.

Also under the current system, cargo unloaded at Sepangar Port must then be reloaded and transported by other means to the east coast thus inevitably raising the cost of goods.

"Why must foreign cargo vessels which arrive at Sepangar Port be prohibited from proceeding to Sandakan, Lahad Datu and Tawau?" Chua asked.

Chua said the federal government should explain how the monopolistic policy had benefited local industries because up to now it has been been evasive on the issue.

By Azman Habu