GEORGE TOWN – The declaration of the North Butterworth Container Terminal (NBCT) as a free commercial zone (FCZ) by the federal government has received the thumbs up from the private sector.
The move provides another avenue to inject fresh investors into the northern region’s trading sector.
Businessman N. Ganesan said if planned well, the FCZ can possibly revive old trade routes with India, Myanmar and Thailand.
He said the duty-free area will lure traders and global distributors to invest in the repackaging and relabelling of products and produce for imports or re-exports.
Penang Chinese Chamber of Commerce vice-president Datuk Finn Choong said the move is a boost to the country’s economy, especially during the Covid-19 pandemic, when traditional sectors have tailed off due to lockdowns.
“It will definitely boost the national economy and complement Penang as the northern transportation hub, with international corporates using the facilities to expand their businesses and products.
“Global companies, like Alibaba and major IT giants, can explore and exploit the facilities for their future business expansion plans, unlike earlier, when the Penang port was seen as only a feeder port for Port Klang and Singapore.”
Penang Port Commission chairman Datuk Tan Teik Cheng last week announced that the NBCT would be gazetted as an FCZ from February 1.
Tan said he hopes that NBCT will become the port of choice for foreign investors.
He added that the efforts made by Transport Minister Datuk Seri Wee Ka Siong and Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz saw the port finally being gazetted as a free trade zone under the Free Zone Act 1990.
Federation of Malaysian Manufacturers northern chapter chairman Datuk Jimmy Ong said the FCZ approval spells good news for traders and manufacturing plants.
He said this is because both parties require transit shipments to be able to carry out value-added activities, since the requirement for custom documentation will now be waived.
“This may lure investments into specific areas, as more vessels are expected to come to Penang. There will also be spillover effects for businesses and companies related to port services and supplies.” – The Vibes, February 5, 2021
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