PORT KLANG: The reinstatement of the cabotage policy in Sarawak is to safeguard local cargo shipping companies from foreign competition, says Transport Minister Anthony Loke.
He said the move arose from the Sarawak state government's request which stressed the importance of sustaining the local companies.
He added that the policy states that only Malaysian-registered ships could transport goods to ports in Sarawak from the peninsula and Sabah.
"There are many shipping companies and ship repair industries based in Sarawak. So, if there are no domestic ships, how will they conduct business?
"This will certainly have a significant impact on the country's (economic) industry.
"Considering all these factors, the (federal) government decided to reinstate cabotage for Sarawak.
"Sabah is still exempt because its state government does not agree with reinstating the policy, and we respect that."
He said this after attending the launch of the maiden voyage of the M.V. MTT Bintangor, here.
He said the policy that was lifted in 2017 to allow foreign vessels to operate between Malaysian ports did not help reduce cost and improve efficiency.
"However, did that lower the cost of goods in Sabah and Sarawak? The answer is not significantly, and there were adverse effect such as opening up competition when this domestic service is made available to foreign shipping companies, resulting in many local shipping companies being unable to compete.
"Consequently, many shipping companies went bankrupt," he said.
Commenting on M.V. MTT Bintangor, Loke said it was owned by a local company, named after one of the towns in Sarawak, and capable of carrying and transporting nearly 1,800 containers, particularly between the peninsula and Sabah and Sarawak.
"The Transport Ministry welcomes investments from local shipping companies.
"The domestic shipping industry is very important, especially during crises, to ensure the supply chain of goods is maintained.
"Without it, we would depend on foreign ships. Usually, during crises, they prioritise their own interests, including pricing (for using their services)," he said.
