Cabotage policy issue to be discussed at National Export Council meeting

Agriculture and Agro-Based Industry Minister Datuk Seri Ahmad Shabery Cheek said implementation of the cabotage policy, particularly involving export companies in Sabah, will be discussed at next month's meeting of the National Export Council.

He said he understood the challenges faced by the Sabah exporters in delivering their goods, in particular agro-food products to other countries, as they were forced to go through Port Klang first.

"This system, (cabotage policy) is no longer practical. It is an old system that needs to be reviewed, as foreign ships coming to Malaysia, have to unload at Port Klang. This pushes up costs.

"This is among the matters that I will bring up at the meeting," he added.

He told reporters this after visiting the plant of QL Marine Product Sdn Bhd, a company involved in the manufacture of marine food products here today.

Ahmad Shabery said without the cabotage policy, the companies concerned will have an opportunity to expand and compete in the overseas market, moreso, when the Trans Pacific Partnership Agreement is implemented.

He also said Malaysia needs to enhance export activities as a move towards strengthening the ringgit and that the country experienced a RM17 billion deficit in the trade balance related to agro-food.

According to Ahmad Shabery the value of agro food product imports in 2014 stood at RM42.6 billion, while the export value was RM25.6 billion.