A group of 10 consignees (end buyers) of the rice involved in the seizure of 351 containers of rice by the Malaysian Customs in Sabah last October, have decided to divert all their business to Tarakan, Indonesia.
A spokesperson for the consignees, Haji Rafael Al Habibi from Zamboanga, told Daily Express:
“We do not need Sabah or Labuan anymore in such trading as the Philippine President has approved the request to import rice directly from sourcing countries like Vietnam, Thailand or Pakistan.”
“We have deposited RM7 million to our buyers in Sabah and Labuan but unfortunately the rice didn’t arrive in Labuan as per scheduled.
“This is our rice! All the 351,000 rice bags were marked ‘FOR TRANSSHIPMENT TO THE PHILIPPINES ONLY’ and even all Bills of Lading also clearly have remarks ‘FOR TRANSSHIPMENT TO THE PHILIPPINES ONLY.
“Why did the Malaysian government (via the Customs) purposely hold our cargo and alleged us as smugglers?
“This is a big loss to the consignees in the Philippines, So far, our loss has reached almost RM11 million because 30 of our ships waited at Labuan anchorage for two months and were compelled to sail back to our home port without any cargo.
“Furthermore, we had to spend diesel to and fro, crew salaries, food and shipping agents fee but we sail back empty,” he said, Wednesday.
Rafael was commenting in the seizure of rice transhipment containing the 351 containers from Vietnam by the Malaysian Customs at Sepanggar Port since Oct, last year, that was meant for buyers in the Southern Philippines which was at that time facing a major rice shortage.
According to the spokesperson for seven Vietnamese firms involved in supplying the rice consignment, Peter Doan, the transhipment in the 351 containers accounted for 9,000 metric tonnes of rice worth USD3 million.
He alleged they were seized by Malaysian Customs at Kota Kinabalu port last October, even though meant for Southern Philippines and did not breach any Malaysian law.
He also said the unexpected seizure was the first they encountered in 20 years.
Sabah Cross Border Trade Association Chairman Nordin Ening then appealed to the Prime Minister and Federal Attorney-General to consider not charging two transhipment rice traders accused by Malaysian Customs of smuggling the 351 containers of Vietnamese rice.
He warned that the consequences are that Sabah may end up losing all future cross border business not only with Vietnam but the BIMP-EAGA region involving about RM2 billion a year as well as jeopardising trading with Thailand, Cambodia and Pakistan.
A rice trading company was charged in the Magistrate Court, Tuesday with smuggling 16,000 sacks of Vietnam White Rice worth RM862,752, last year.
B.G.C. Trading (L) Sdn Bhd represented by its Managing Director pleaded not guilty to the charge before Magistrate Mohamad Aizat Abdul Rahim.
Customs Department prosecuting officer Zuraynee Ahmad Zaini informed the court that five more similar cases would be brought to court.
Rafael said the 10 consignees will claim those losses to the Malaysian suppliers since they have proper agreement in the involved transactions of the rice consignment that had been seized by Malaysian Customs.
“We have informed our suppliers in Labuan and Sabah that we rejected the 351 containers because the cargo is already spoiled like soil and inconsumable.
“Actually, we prefer buying from Sabah or Labuan because all products are halal and syariah compliant.
“But after what had happened (to the 351 containers), we have alternative now to divert all the business to Tarakan and the Indonesian Government is offering conducive business environment at their Nunukan and Tarakan ports,” he said.
The previous Sabah Government stopped all cross border trade since 2016 following cross-border kidnappings but it is understood that this was reviewed by the Warisan-led government that came to power post-GE14, allowing transhipment first to be followed later by barter trade.
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