KUCHING: The decision to exempt all East Malaysian ports from the cabotage policy could drastically reduce logistics costs for imports and exports.
Datuk Sim Kiang Chiok, chairman of the Digital Economy Unit at the Kuching China Trade Importers and Exporters Association (KCTIEA), said that by allowing foreign vessels direct access to Sarawak’s ports, the state’s economy could experience significant growth.
“International vessels, however, would still be required to secure permits for docking at our ports to ensure security,” said Sim.
He further elaborated on the critical nature of the Cabotage Policy, which empowers countries to regulate maritime transportation and ensuring the viability of domestic shipping industries within their territorial waters.
Sim also pointed out that the impact on logistics costs would vary with the cargo volume. Lower volumes might lead to higher transportation costs and vice versa.
Nonetheless, he suggested that exemptions could yield savings in both time and costs, as goods would bypass the need to route through Port Klang.
