KOTA KINABALU, May 31 (Bernama) — The Ministry of International Trade and Industry (MITI) hopes the abolishment of the cabotage policy in Labuan, Sabah and Sarawak, effective tomorrow, will not be sabotaged like it was during the implementation of the Goods and Services Tax (GST).
Deputy Minister, Datuk Ahmad Maslan said the irresponsible attitude of certain quarters to ensure the failure of the government’s effort to streamline the prices of goods in the peninsula with Sabah, Sarawak and Labuan would affect the nation’s economy, especially those involving the Small and Medium Enterprises (SMEs).
“In reducing the prices of goods (when the cabotage policy is abolished) I want four things to be done — the implementation of the abolishment is not being sabotaged, traders must be ethical in their business network, enforcement must be orderly at all levels and consumers must be smart and take action.
“We do not want to see what happened to GST happens with the abolishment of the cabotage policy,” he said to reporters after visiting several SMEs at the SME Bank Factory Complex in Lok Kawi near here, today.
Ahmad also said the attempt to sabotage the implementation of the cabotage policy abolishment would prevent the government’s effort to help the rakyat.
“I just want to remind on the experience when the government was criticised when the theory that said that GST will reduce prices of goods did not happen. Whereas, in terms of its theory is correct.
“The abolishment of the cabotage policy is also the right theory (reduce goods prices). The question is whether it will happen or not. This is a very important matter for us to observe from tomorrow,” he said.
On May 7, 2017, Prime Minister Datuk Seri Najib Tun Razak announced the exemption of the cabotage policy to Sabah, Sarawak and Labuan effective June 1, and would no longer be bounded by the policy imposed on all cargo shipping services between Peninsular Malaysia, Sabah, Sarawak and Labuan.
On the SMEs in Sabah, Ahmad hoped they were more creative, innovative, as well as able to export their products.
“The Malaysian market is only about 30 million people, but if we export to China, there’s 1.3 billion people, India (1.2 billion) and ASEAN (650 million),” he added.
He also announced that SME Corp Malaysia had approved financing of RM254.62 million to 1,168 SMEs in the state for various programmes in the first four months of this year.
— BERNAMA
