The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah
The Malaysian government introduced a cabotage policy in 1980 to protect and enhance the competitiveness of the Malaysian shipping industry. The policy requires all foreign vessels to unload at Port Klang, the designated national port, after which only Malaysian-flagged vessels can carry cargo to ot...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English English |
| Published: |
Faculty of Economics and Administration, University of Malaya
2019
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/73652/ http://irep.iium.edu.my/73652/1/73652_The%20Influence%20of%20Cabotage%20Policy.pdf http://irep.iium.edu.my/73652/6/73652_The%20influence%20of%20cabotage%20policy%20on%20price%20disparity%20between%20peninsular%20Malaysia%20and%20Sabah_Scopus.pdf |
| _version_ | 1848787832813912064 |
|---|---|
| author | Mhd. Ruslan, Siti Marsila Mat Ghani, Gairuzazmi Khalid, Haniza |
| author_facet | Mhd. Ruslan, Siti Marsila Mat Ghani, Gairuzazmi Khalid, Haniza |
| author_sort | Mhd. Ruslan, Siti Marsila |
| building | IIUM Repository |
| collection | Online Access |
| description | The Malaysian government introduced a cabotage policy in 1980 to protect and enhance the competitiveness of the Malaysian shipping industry. The policy requires all foreign vessels to unload at Port Klang, the designated national port, after which only Malaysian-flagged vessels can carry cargo to other ports in Malaysia. The policy was criticised for creating additional freight costs to importers and for allowing domestic shippers to monopolise the market. Critics claimed that the higher rates for transhipment services were subsequently passed on to the consumers resulting in higher prices of goods and services. This study examines the influence of Malaysia’s cabotage policy on prices and competitiveness of the shipping industry in the state of Sabah. This study used stakeholders and force-field analysis to examine the influence of the cabotage policy. The stakeholder analysis identified four different stakeholder groups, examined their positions, and rate their positions on the influence of cabotage policy using force-field analysis technique. The analyses show that the cabotage policy was not the only factor causing high prices. Port conditions, efficiency, level of infrastructure, trade imbalance, and political will must also be addressed to remedy the issue. |
| first_indexed | 2025-11-14T17:31:12Z |
| format | Article |
| id | iium-73652 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T17:31:12Z |
| publishDate | 2019 |
| publisher | Faculty of Economics and Administration, University of Malaya |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-736522019-11-25T15:58:10Z http://irep.iium.edu.my/73652/ The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah Mhd. Ruslan, Siti Marsila Mat Ghani, Gairuzazmi Khalid, Haniza H Social Sciences (General) The Malaysian government introduced a cabotage policy in 1980 to protect and enhance the competitiveness of the Malaysian shipping industry. The policy requires all foreign vessels to unload at Port Klang, the designated national port, after which only Malaysian-flagged vessels can carry cargo to other ports in Malaysia. The policy was criticised for creating additional freight costs to importers and for allowing domestic shippers to monopolise the market. Critics claimed that the higher rates for transhipment services were subsequently passed on to the consumers resulting in higher prices of goods and services. This study examines the influence of Malaysia’s cabotage policy on prices and competitiveness of the shipping industry in the state of Sabah. This study used stakeholders and force-field analysis to examine the influence of the cabotage policy. The stakeholder analysis identified four different stakeholder groups, examined their positions, and rate their positions on the influence of cabotage policy using force-field analysis technique. The analyses show that the cabotage policy was not the only factor causing high prices. Port conditions, efficiency, level of infrastructure, trade imbalance, and political will must also be addressed to remedy the issue. Faculty of Economics and Administration, University of Malaya 2019-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/73652/1/73652_The%20Influence%20of%20Cabotage%20Policy.pdf application/pdf en http://irep.iium.edu.my/73652/6/73652_The%20influence%20of%20cabotage%20policy%20on%20price%20disparity%20between%20peninsular%20Malaysia%20and%20Sabah_Scopus.pdf Mhd. Ruslan, Siti Marsila and Mat Ghani, Gairuzazmi and Khalid, Haniza (2019) The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah. Institutions and Economies, 11 (3). pp. 65-91. ISSN 2232-1640 E-ISSN 2232-1349 https://ijie.um.edu.my/article/view/18615/10154 |
| spellingShingle | H Social Sciences (General) Mhd. Ruslan, Siti Marsila Mat Ghani, Gairuzazmi Khalid, Haniza The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah |
| title | The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah |
| title_full | The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah |
| title_fullStr | The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah |
| title_full_unstemmed | The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah |
| title_short | The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah |
| title_sort | influence of cabotage policy on price disparity between peninsular malaysia and sabah |
| topic | H Social Sciences (General) |
| url | http://irep.iium.edu.my/73652/ http://irep.iium.edu.my/73652/ http://irep.iium.edu.my/73652/1/73652_The%20Influence%20of%20Cabotage%20Policy.pdf http://irep.iium.edu.my/73652/6/73652_The%20influence%20of%20cabotage%20policy%20on%20price%20disparity%20between%20peninsular%20Malaysia%20and%20Sabah_Scopus.pdf |