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Gov't To Study Effects Of East Malaysia Cabotage Policy Exemption

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KOTA KINABALU - The federal government will take up to two years to study the effectiveness of the recently-abolished cabotage policy in reducing the prices of goods in east Malaysia and Labuan.

Deputy Transport minister Datuk Abd Aziz Kaprawi said a task force has been set up to conduct the analysis.

“The government exempted the cabotage policy following requests from local leaders (on the effects of the policy) on prices.

“However, some (players in the) local shipping industry (have complained that they have been negatively) affected by the exemption,” Abd Aziz said, adding that the analysis will also look into whether the policy exemption has had an effect on prices.

He was speaking at a press conference after launching the 10th Cooperation Forum for Littoral States and User States in the Straits of Melaka and Singapore here.

In May this year, Prime Minister Datuk Seri Najib Razak announced that cargo vessels heading from Peninsular Malaysia to east Malaysia and Labuan will be exempted from the cabotage policy.

-NST