KUCHING: The handover of Bintulu Port to Sarawak is a prudent decision to enhance economic activity in the state, integrating all the ports under a master plan, and assuring the sustainability of economic growth.
Universiti Malaysia Sarawak (Unimas) economist Jerome Kueh said the initiative is crucial because it will link the ecosystem of Sarawak’s ports and create a competitive advantage through strategic port positions.
“The operation of the ports can generate revenue to Sarawak via port services such as cargo handling charges, storage fees and other port related services.
“Under the master plan, the integration of Bintulu Port with the other ports in Sarawak can improve the shipping value chain and contribute revenue through the optimisation of the price structure mechanism and policies.”
Other important aspects, he said, included enabling more business expansion or even emergence of new related industries in the ecosystem, which will lead to higher revenue generation via tax collection.
Speaking to New Sarawak Tribune, Kueh said, a systematic port administration will indirectly attract more foreign investments and trading, resulting in more government revenue.
It will also improve the efficiency of the ports and higher port operating efficiency is associated with lower costs.
Eventually, he said, this will improve the port’s competitiveness and facilitate trade activity not only in Malaysia, but also at the regional and worldwide levels.
He also felt that higher port efficiency will be a crucial determinant for corporations, such as Multinational Corporations (MNCs), in selecting the strategic port for their trading route.
Furthermore, this scenario may entice supporting industries to establish a presence near the port.
Kueh said the spill-over effects do not stop at increasing economic activity at the port; they also foster innovation through strategic collaboration among stakeholders and increase productivity.
“This might make Sarawak port one of the chosen port locations in the Global Value Chain (GVC), expanding international economic activity.
“The presence of MNCs and supporting industries at the port will increase job opportunities and raise people’s living standards,” he added.
From the government’s perspective, he said, a rise in trading operations at the port means more tax money for the government; where this form of revenue has the potential to improve the budget balance.
Additionally, the presence of MNCs and supporting businesses indirectly promotes economies of scale and scope, which may lead to efforts towards green port management.
On Sunday, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg thanked Prime Minister Datuk Seri Anwar Ibrahim for agreeing to hand over the Bintulu Port to Sarawak when tabling the Budget 2024.
He said the country’s premier liquefied natural gas (LNG) port, belongs to Sarawak and was one of the agendas pursued under the Malaysia Agreement 1963 (MA63).
The state government wanted to take over Bintulu Port and include it as part of the cluster of state ports, under a central port authority which will be incorporated by state law.
The proposed authority, he said, to regulate, streamline and coordinate the management, operation, planning, and development of all ports; including ports in Kuching, Rajang, Miri, Tanjung Manis and Samalaju as well as Bintulu Port.
Abang Johari said the Bintulu Port is the state’s right despite it currently operating as a federal port.
“Yes, there was a mutual understanding or consensus as we needed help from the federal government when constructing the port decades ago due to lack of funding.
“However, we never changed or amended any (state) law (to relinquish Sarawak’s rights over the port).
“We thank the Prime Minister for agreeing to return it to us when tabling the Budget 2024 recently as the Bintulu Port is our right under the State List,” he said.
