Claims on cabotage policy hampering trade inaccurate – Wee

 

The statement by Muhammad Muhsinin Dolisada, an Indonesian consul in Sabah, pertaining to the use of wooden hull ships and smaller vessels in Malaysian and Indonesian waters by linking them with the cabotage policy is inaccurate and confusing, Transport Minister Wee Ka Siong said.

Wee said Muhammad had erred in his statement, published by several media organisations, by linking the issue with Malaysia’s cabotage policy, adding that instead, it pertained to non-conventional vessels from Indonesia.

The statement, among others, quoted Muhammad as saying that trade in the waters off Tawau and Kalimantan, Indonesia was currently done with wooden hull ships and smaller vessels, which are not recognised under International Maritime Organisation (IMO) regulations, and that under cabotage limits, IMO restricts trade to be conducted with steel hull vessels.

In a statement today, Wee clarified that the cabotage policy is regulated under the Merchant Shipping Ordinance 1952 (MSO 1952) and not under IMO’s regulations.

He said subsection 65L (3) of the MSO 1952 provides an exemption from Section 65L to Malaysian registered vessels with a net weight under 15 tonnes, licensed under Section 475 MSO 1952 (boat licence); licensed under MSO 1960 (Sabah) and (Sarawak); and owned or leased by the Malaysian government, state government or port authority.

Wee said the cabotage policy involves the recognition of trading certificates for non-conventional vessels that are typically vessels below 500 gross tonnages from Indonesia, which are mostly used to conduct barter trade.

Signed by Asean nations

He said in December 2018, Malaysia, along with eight other Asean nations, except for Myanmar, signed a memorandum of understanding (MOU) on the Mutual Recognition of Certificates for Non-Convention Vessels (NCV).

Under this MOU, Malaysia recognises the NCV certification as prescribed by the central maritime administration of the respective flag state.

Wee said the Maritime Department allowed the entry of NVCs from Indonesia into Malaysian ports with the condition that they comply and possess the necessary safety certificates, as prescribed by the Indonesian Directorate General of Sea Communications, to be carried onboard Indonesian NCVs.

“This is practised throughout Malaysia in managing barter trading vessels from Indonesia, including Sabah and Sarawak,” he said.

-Bernama