MORE PORTS FOR EAST MALAYSIA STATES

KUCHING, Aug 18 (Bernama) -- In a move to liberalise the cabotage shipping
policy, the government is proposing that more ports be set up in East Malaysia
states of Sabah and Sarawak to reduce freight charges.

International Trade and Industry Minister Mustapa Mohamed said the matter
has been raised with the Federal Cabinet and governments of both states.

"I am aware that the people in Sarawak and Sabah are not satisfied with it
(liberalisation) as it has not worked as desired. That is why the consumer price
index (CPI) is higher in both states than in the Peninsular," he said during an
investment and trade dialogue here Tuesday.

He added that the review of the liberalisation policy was likely to be
completed by next year.

Mustapa was replying to points raised by Osman Abdul Rahman from the Sarawak

Federation of Malaysian Manufacturers, who claimed that the liberalisation
policy was only limited to Bintulu and Kuching ports in Sarawak.

Osman also asked that the ministry review current freight fees to avoid
burdening manufacturers with additional costs.

On the delay in issuing the certificate of approval for steel imports,
Mustapa said it was due to teething problems and to prevent the country from
being used as a dumping ground for sub-standard steel.

Earlier, in his speech at the seminar on manufacturing and services sector,
the minister said Sarawak received RM7.3 billion in approved investments in the
first six months of this year, accounting for 45.9 per cent of approved
investments in the manufacturing sector.

The amount approved, included 24.7 per cent or RM1.8 billion from domestic
investors while foreign investments accounted for 75.3 per cent or RM5.5
billion.

The chemical and chemical products industry was the major beneficiary with
investments of RM5.6 billion, basic metals products (RM1.6 billion) and wood and
wood products (RM56.5 million).

Mustapa said foreign investments in Sarawak was the highest recorded in the
country, accounting for 52 per cent of the RM10.6 billion aproved.

"The approvals indicate a strong participation by foreign investors in the
state's manufacturing sector, particularly in capital-intensive industries," he
said, adding that it was a testimony to the conducive business environment
prevailing in Sarawak.

He, however, urged local investors to participate more actively in Sarawak's
economic and industrial development.

The seminar, opened by Sarawak Chief Minister Abdul Taib Mahmud, is a
platform for local businessmen to provide feedback to the government and to
enhance networking with government agencies. (US$1=RM3.54)
-- BERNAMA