Penang Port terminal gets duty-free status

GEORGE TOWN – Come February 1, part of Penang Port will be granted duty-free status for the first time in more than 50 years.
 
This is part of the federal government's effort to boost trade and the usage of the northern region's sole port facility.
 
Penang Port Commission (PPC), which regulates the port, said in a statement late yesterday that the duty-free status will be accorded at the North Butterworth Container Terminal (NBCT).
 
The free-trade zone will be divided into industrial zones, commercial zones and special zones, PPC chairman Datuk Tan Teik Cheng said.
 
Penang Port Sdn Bhd (PPSB) chief executive officer Datuk Sasedharan Vasudevan said as Penang is the northern region's hub for trade movement, the status is a strategic move.
 
"With the effort of Transport Minister Datuk Seri Dr Wee Ka Siong, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz has finally agreed to gazette the NBCT as a free-trade zone under the Free Zone Act 1990.
 
“It will create many local employment opportunities and drive the domestic manufacturing industry,” he said.
 
With this designation, PPC and PPPSB will look into improving the port’s attraction and encouraging foreign investors into the state. 
 
Plans are also under way to introduce investment incentives and one-stop centres to facilitate foreign exporters in increasing their output.
 
Tan said international companies can import raw materials from foreign countries and process them in the free-trade zone prior to export.
 
“Since the FTZ has commercial facilities, such as logistics services and warehousing, we expect more break bulking, grading, repackaging, relabelling, transit and re-exporting works to be carried out by players from around the world.
 
“As they enjoy duty-free status, their products can be exported at a lower price,” he said.
 
The status does not, however, include retail areas, such as exemption for products like perfumes, alcohol or tobacco, except for the cruise liner business. – The Vibes, January 29, 2021
 
Additional reporting by Ian McIntyre