Prime Minister of Malaysia, Datuk Seri Najib Tun Razak, in response to a reader
named K.C.Jong on his blog - Ah Jib Goh, regarding the Cabotage Shipping Policy
which governs the cargo vessels plying between Peninsula Malaysia and East
Malaysia since 1980, stressed that all foreign cargo vessels are free to berth
at any harbour in Malaysia, and that shipping companies are also free to ship
out goods from any port out of the country.
Najib said that the transportation of goods are decided by the shipping
companies, which is based on commercial considerations.
The main factor affecting the decision where to unload the cargo is the logistic
volume. It is not decided by the government, and government does not get
involved.
Najib is repeating the answer given by the Transport Minister, Dato' Seri Kong
Cho Ha. When queried by Datuk Seri Panglima Wong Khen Thau, the president of
Federation of Sabah Manufacturers (FSM) earlier on,Dato Seri Kong gave the exact
answer,word for word.
Datuk Seri Panglima Wong was seeking the help of the transport minister in
amending the Cabotage Policy in order to allow foreign vessels to load goods
which are destined for Sabah at Port Klang if there is any space left after
finished loading goods meant for foreign countries.These vessels can then make a
detour to Sabah on their way to foreign countries.After unloading at Sabah
ports, they can up load goods from Sabah ports to fill up any empty space.Then
they can continue on their journey home.
Similarly, incoming vessels would first come to Sabah, unload imported goods
then upload goods for export to fill up any empty space.Then these vessels would
proceed to travel to Port Klang.
Datuk Seri Panglima Wong claimed that this is not possible with the existing
policy, it requires that all goods arriving at Port Klang to be unloaded, any
goods destinations of which are the 2 East Malaysia states have to be handled by
local companies which charge handling fees 10 times higher than those for
foreign countries.Similarly, goods for export will have to be sent to Port Klang
first, again handled by local companies.
Why is this so? Maybe the original motive was to protect the local companies,
which is fine, but they should not take advantage of the monopoly and charge
unreasonable rates.
I feel that the request by Datuk Seri Panglima Wong is very reasonable if what
he claimed is true.
However, the transport minister seemed to have misunderstood Datuk Seri Panglima
Wong's request. He told the press that the government has allowed foreign cargo
vessels to stop at any port in Malaysia freely all along, implying that Datuk
Seri Panglima Wong had wrongly accused the transport ministry. Datuk Seri
Panglima Wong was furious on reading this reply, and vowed to bypass the
transport minister and go straight to the prime minister for assistance.
But now that the prime minister himself is giving the exact answer as that of
the transport minister, what's next?
The government is playing the words game. They keep saying the decision is made
by the shipping companies on their own free will. But many a time, these so
called "shipping" companies are merely forwarding agents, they do not own a
single ship.They may rent one once in a blue moon, but they are not ship
owners.If they are, these are small in number as compared to the total number of
local shipping companies.They deal with the foreign ships' owners for maximum
profits, that is all that is to it.
The FSM should counter this by writing a clear letter purging any ambiguous
words and present their case clearly again. They should specifically request
that foreign cargo vessels which chose to come direct to East Malaysia, be
allowed to pick up goods meant for export, HANDLED by forwarding companies of
the goods owners' choice, then proceed to travel to Port Klang.Do not force
these vessels to leave for foreign countries from here. Similarly, vessels
berthed at Port Klang be allowed to pick up goods meant for East Malaysia,
HANDLED by forwarding companies of the owners' choice.
Also do not force them to leave for foreign countries directly. FSM should
specifically mention that their president did not request for vessels to be
allowed to berth at East Malaysia ports, which he knew very well they are
allowed to do so already.
What he asked for is to allow the foreign vessels to make a DETOUR to East
Malaysia when they leave Pork Klang for home, and vice versa.
I have been wondering why is it commercially viable for local agents to send
goods between Peninsula Malaysia & East Malaysia, while it is not viable for
foreign companies? Is it because the vessels traveling
between Peninsula Malaysia and East Malaysia are smaller in capacity? If that is
the case, why don't the foreign companies use these smaller vessels for
transporting goods to East Malaysia only? The FSM should
take the initiative to persuade the foreign shipping companies to employ these
smaller vessels to transport their products directly in order to stop been
squeezed by the local forwarding agents. An another alternative is to form
forwarding companies under the control of the FSM, certainly these companies
will have the best interests of FSM in mind. Then only you will be free from the
iron grip of the so called "shipping" companies.
If you think this is too troublesome, then pay for it and have an easy life.