KUCHING (June 26): The reintroduction of the cabotage policy in Sarawak will serve as a crucial catalyst for a sustainable maritime ecosystem development, said the Sarawak Business Federation (SBF).

SBF secretary-general Datuk Jonathan Chai explained that having the policy reinstated will also safeguard Sarawak’s strategic commodities and services, while creating job opportunities and reducing reliance on foreign vessels.

“The shipbuilding industry is an important industry for Sarawak; it has not only contributed significantly to the local economy but also generated thousands of jobs,” he said when contacted for his views on the policy’s reinstatement.

Chai said the reinstated policy has attracted mixed reactions from stakeholders, particularly with those from the local shipbuilding industries and shipping businesses favouring the latest decision to keep the state’s local shipping industry afloat.

He said there would be consequential impact on the local shipbuilding industry if local operators were out of business, and this would in turn result in fewer local vessels operating in the waters and a decline in the maintenance services required.

“However, there are members in the import business who wanted the exemption to continue holding the views that delivery time for cargoes or containers could be cut short and shipping costs could be more competitive if foreign ships are allowed to engage in domestic shipping.”

With that said, Chai hoped local shipping companies would be able to fulfil the needs and expectations of the business community through the provision of better services at more competitive rates.

Last Saturday, federal Transport Minister Anthony Loke said the cabotage policy would be reintroduced in Sarawak at the request of the state government.

He said this was aimed at supporting the growth of the domestic shipping industry, particularly in Sarawak, due to the high number of shipping companies and shipbuilding activities in the state.