Sheda Kuching chairman: Cabotage policy exemption to ports in East M’sia can impact logistics costs

Sim Kiang Chiok

By DayakDaily Team

KUCHING, March 2: Granting exemptions to the cabotage policy for all ports in East Malaysia by the federal government can significantly impact logistics costs for imported and exported goods, says Sarawak Housing Estate Developers Association (Sheda) Kuching branch chairman Dato Sim Kiang Chiok.

In a statement today, Sim explained that the cost adjustment will depend on the volume of goods vessels can carry to and from the State’s ports.

He elaborated that if the volume is low, the transport costs will be high, and vice versa.

“However, there may be savings in terms of both cost and time due to the exemption from the cabotage policy, as goods would not need to pass through Port Klang,” he further elaborated.

Sim pointed out that exemption from cabotage could potentially open Sarawak’s economy to the world, as all ports in Sarawak would be accessible to foreign vessels.

However, he said that international vessels would still need to obtain permits to dock in Sarawak’s ports for security reasons.

Sim also said that the cabotage policy holds significance for nations, referring to the right of a country to regulate the transport of goods and passengers by sea within its territorial waters.

“This policy contributes to safeguarding a country’s coastal waters and maintaining the sustainability of its domestic shipping market,” he said. — DayakDaily