KUCHING, Feb 15: Malaysia’s cabotage policy helps to protect the country’s coastal waters and the sustainability of its domestic shipping market, says Malaysia Shipowners’ Association (Masa) chairman Mohamed Safwan Othman.
In a press statement issued today, Mohamed Safwan pointed out that Malaysia capitalises on its strategic geographical importance in global trade, evolving from an agrarian economy to what it is today, with a sizable maritime domestic market, several ports serving international trade through manufacturing goods, strategic commodities such as oil and gas, palm oil shipping, and many more.
“However, Borneo is located off a major shipping trunk route, where Malaysia domestic shipping served to link between Peninsular and East Malaysia.
“Due to all this, the need for a cabotage policy cannot be overlooked. It serves as a crucial catalyst for a sustainable maritime ecosystem development and maritime assets capabilities, thus making sure that the linkage between East and West Malaysia remains functioning, safeguarding strategic commodities and services while reducing reliance on foreign ships,” he said.
He also said Malaysia is no exception when it comes to cabotage policy, and that Malaysia’s cabotage policy is governed by law, which prohibits non-Malaysian ships from engaging in domestic shipping.
The Masa chairman also noted that Malaysia has eased regulations, allowing foreign ships to participate in the domestic shipping market.
“It is important to understand that the cabotage policy does not prohibit international trade. In actuality, there are international shipping routes that serve East Malaysian ports.
“For example, there are rice shipments directly from Ho Chi Minh, regular container ships call from Taiwan and Singapore, many foreign tankers loading crude palm oil directly at East Malaysian ports as well as foreign bulk carriers discharging fertilisers and iron ore directly at Sandakan, Tawau and Bintulu,” he added.
He continued, “All the examples show that shipping routes have existed throughout the 40 years implementation of cabotage policy.”
Furthermore, Mohamed Safwan stated that there is a misunderstanding that cabotage policy requires all ships to call at Port Klang before proceeding to Kuching and Kota Kinabalu ports.
“There are no such conditions imposed on domestic or foreign ships, as both state and federal ports do have foreign ships calling directly,” he stated.
He added, “In conclusion, cabotage is a global norm, adopted by 81 per cent of UN countries with coastlines.
“It is a catalyst for the development of a sustainable maritime ecosystem. Due to Malaysia’s unique geographic and combined with a vast EEZ (Exclusive Economic Zone) area with high potential for blue economy development, cabotage is relevant to Malaysia.
“Coupled with that, the need to safeguard the linkages between East and West Malaysia, particularly for food security as well as national security justifies the implementation of cabotage.” — DayakDaily
