Sabah won’t reinstate abandoned cabotage policy

Sabah has no intention of reinstating the long-abandoned cabotage policy, said Sabah State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.

Phoong emphasised the need to build a strong and dynamic economy in Sabah, which would increase demand for container exports and attract more international cargo ships to the state. 

“We will not revert back to the cabotage policy. 

“We will keep our policy open to encourage more international shipping lines to visit Sabah regularly,” Phoong said, reported Sin Chew Daily. 

He explained that in the past, due to low export volumes, foreign ships were unwilling to visit, necessitating a maritime policy that forced domestic shipping companies to transport goods between Port Klang and Sabah.

Phoong noted that Sabah’s open maritime policy allows foreign ships to dock directly to unload and load cargo in Sabah. 

“For example, the Chinese company Kibing Group which produces photovoltaic glass in the Kota Kinabalu Industrial Park, exports 50 containers daily, with the number set to increase to up to 100 containers per day next month as new production lines become operational,” he said. 

In 2017, the Transport Ministry had exempted Sabah from cabotage policy.

Transport Minister Anthony Loke stated that the exemption for cargo services between Peninsular Malaysia, Sabah, and Labuan was upheld based on Sabah’s position.