Traders, Sabah Gov’t differ on prices

The Sabah Gov’t says the National Cabotage Policy not behind the increase in prices.

KOTA KINABALU: The Sabah Government and the Federation of Sabah Industries (FSI) appear to be on opposite poles on the National Cabotage Policy (NCP) and its effect on prices in the market.

Sabah Assistant Minister Bolkiah Ismail said the price increases in the state was not entirely due to the NCP. “The NCP only contributes about 6 per cent to the increase,” he claimed. “Most of the 20 to 30 per cent increase, compared with the peninsula, was due to middlemen, agents and wholesalers marking up prices.”

However, he conceded, that the logistics sector needs an overhaul.

He was responding to a media report on FSI President Wong Ken Thau throwing in the towel after 15 “wasted years”.

“Without the NCP, Sabah manufacturers would find that shippers are not willing to service the Port Klang-Kota Kinabalu (Sepanggar) route,” he added. “The volume of empty containers on the Sepanggar-Port Klang route was, at present, much higher than the Port Klang-Sepanggar route.”

He did not address the issue of ships from China, for example, being allowed to visit Sabah direct instead of offloading in Port Klang for onward shipment to the state by local shippers.

Wong, revisiting the issue, said the NCP was not what it seems on paper. “It does not reflect the actual situation on the ground. We are challenging the effect of the NCP on industries and the prices of goods in Sabah.”

To illustrate his point, he asked whether Sabah had produced any tycoons in the past two decades. “We are not against the government,” he said. “We support the government but it should consider how to return that support by assisting us.”

The Sabah and Federal Governments, he reiterated, must seriously study how to reduce the cost of doing business in Sabah to make local industries competitive as well as help create a conducive environment for them to export. “We are voters as well,” he said. “It’s only right that they look into how to help us. The government must listen to the business sector.”

“We are not politicians. We are fighting for the survival of the industries.”

Wong will step down as President at the FSI’s forthcoming annual general assembly (AGM) on June 22. He expects his deputy, Mohammad Basri Abdul Gafar, to take over as President.

He said that he “searched his conscience” before arriving at his quit decision. “I feel ashamed. I couldn’t convince the government to look at the industries, to assist them,” said Wong. “I have done nothing to help the industries because I couldn’t do anything. I feel very bad about it.”