THE SABAH government has expressed cautious optimism at Putrajaya's decision to discontinue a three-decade-old policy to centralise all cargo shipping to Port Klang in peninsular Malaysia.
While the state authorities are uncertain about exactly how halting the National Load Centre policy will bring about improvements to Sabah’s already sluggish shipping industry, they are keen to find ways to take advantage of the move.
State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said he sees potential opportunities arising from the decision, but a lot of work is needed to fully capitalise on this new flexibility.
He stated that it is important for Sabah to continue efforts to enhance the competitiveness and capabilities of local ports.
“It (policy discontinuation) means we are on our own now,” he said. “I believe this is a new positive beginning that could open up various opportunities for Sabah.
“It is indeed a positive development…Sabah has to formulate more policies to reignite its shipping industry and exports, and at the same time boost competitiveness and capabilities of the local ports.”
He was speaking to reporters while attending the Federation of Sabah Industries’ (FSI) Chinese New Year open house at the Kota Kinabalu Industrial Park today. Also present was FSI president Richard Lim Yuen Hooi.
Federal Transport Minister Anthony Loke had yesterday announced that the National Load Centre Policy introduced in the 1990s to centralise cargo services in Port Klang is no longer applicable.
Phoong remarked that Sabah now needs to devise attractive policies for ships to call on ports in the state and to support exports by encouraging local manufacturers to improve trade.
He pointed out that the manufacturing sector only contributed 7.1 percent to Sabah’s gross domestic product (GDP) in 2022.
The entry of mega companies like South Korea’s copper foil manufacturer SK Nexillis and China’s solar manufacturer Kibing would be able to keep the state ports more vibrant and busy, he added.
Phoong also noted that some other circumstantial opportunities may arise from the federal government's decision which comes just as neighbouring Thailand is planning a canal across its southern neck at the Isthmus of Kra.
The Thai project would attract ships to travel directly from the Gulf of Thailand and South China Sea to the Indian Ocean and Andaman Sea beyond, and vice-versa.
The proposed canal is thus expected to cut cargo transit time from the Pacific to the Indian oceans, providing an alternative route that bypasses Singapore and the Straits of Malacca, which are part of the world’s major shipping route at present.
The decision not to carry on with the policy was agreed to at the meeting of the cabinet of ministers chaired by Prime Minister Datuk Seri Anwar Ibrahim yesterday.
Loke explained that the Transport Ministry's policy of promoting Port Klang as the sole National Load Centre is no longer applicable since the port now handles quantities of local containers for import and export in excess of six million TEUs (Twenty-foot Equivalent Units). – The Vibes, March 2, 2024
