Ministry said high costs of materials due to high surcharges in Sabah
Kuala Lumpur, Mar 27, 2009: The
Ministry of Transport denied that the high prices of goods in East
Malaysia is tied entirely to the Cabotage Policy. The ministry was
responding to Datuk Chua Soon Bui, Member of Parliament for Tawau during
The ministry however, blamed the high surcharges in Sabah and Sarawak,
the overall transportation cost including cost of logistics on land and
cost of ports among others.
Chua had asked whether the Transport Ministry intends to review the
Cabotage Policy for Sabah, considering prices of essential materials for
the construction and manufacturing sectors in Sabah are 20-30% higher and
has the Transport Ministry carried out any survey of the Cabotage Policy
and its implications on the difficulties faced by the manufacturing
sectors in Sabah.
The Transport ministry further claimed that the Cabotage Policy is
practised by many other maritime nations in the world including advanced
nations like Japan and United States of America. Several nations fully
enforce the implementation of this policy whereby foreign ships are not
allowed altogether to operate in the domestic waters of the concerned
The Cabotage Policy had started to be enforced in the year of
1980 in Malaysia.