No hindrance to continue small vessel trade between Indonesia, Malaysia, says Dr Wee

19/5/2022 8:11:00 AM

No hindrance to continue small vessel trade between Indonesia, Malaysia, says Dr Wee

No hindrance to continue small vessel trade between Indonesia, Malaysia, says Dr Wee

PETALING JAYA: There is no hindrance to continue small vessel trade between Malaysia and Indonesia, says the Transport Ministry.

Datuk Seri Dr Wee Ka Siong clarified that the Indonesian Consulate-General's claims on cabotage policy governing trade vessels between Malaysia and Indonesia had been inaccurate.× Copy URL The Malaysia External Trade Development Corporation (Matrade) wins the best use of information technology category at the 2022 World Trade Promotion Awards during the World Trade Promotion Organisations (WTPO) Conference and Awards held in Accra, Ghana.PETALING JAYA: Health protocols for flights must be consistent, simpler and predictable to ensure smooth and full recovery in the aviation industry, says Datuk Seri Dr Wee Ka Siong ( pic ).During a courtesy call to the Institution of Engineers Malaysia (IEM), the Transport Minister said such individuals must be equipped with technical qualifications and the social responsibility to create a safer and sustainable environment for the people.

"It is regrettable that economic affairs counsellor Muhammad Muhsinin Dolisada, from the Indonesian consulate-general in Sabah, has caused some confusion due to inaccuracies in the counsellor’s claims, as reported in local media recently."Comments appearing in the Daily Express broadsheet and later reproduced by other online media quotes Muhammad as saying that “trade conducted off Tawau’s waters and Kalimantan, Indonesia, is currently done with wooden hull ships and smaller vessels, which were not recognised under the International Maritime Organization’s (IMO) regulations.THE Malaysia External Trade Development Corporation (Matrade) was named the winner of best use of information technology category at the 2022 World Trade Promotion Awards during the World Trade Promotion Organisations (WTPO) Conference and Awards held in Accra, Ghana recently."Under cabotage limits, the IMO restricts trade to be conducted with steel hull vessels."Countries that persist in attempting to lock-out the disease, risk missing out on the enormous economic and societal benefits that a restoration of international connectivity will bring."This is a misleading statement by Muhammad, who had mistakenly attributed the issue to Malaysia’s cabotage policy, as it relates instead to non-convention vessels from Indonesia," said Dr Wee in a statement on Thursday (May 19).Effective July 2018, access to full reports will only be available with a subscription.He said the Transport Ministry will continue to monitor the issue, while the Marine Department has been instructed to explain the matter to the Indonesian consulate-general in Sabah."The technical challenges in carrying out this project make the site visit a greater learning experience," he said.

Dr Wee also explained that the cabotage policy is regulated under the Merchant Shipping Ordinance 1952 (MSO 1952) and not under IMO’s regulation as mentioned.Meanwhile, Dr Wee said many airports are faced with operational challenges, such as manpower constraints, health document check, and Covid-19 tests in airports as the aviation industry begins to recover.Subsection 65L (3) of the MSO 1952 provides an exemption from Section 65L to Malaysian Registered Vessels with net weight under 15 tonnes, licensed under Section 475 MSO 1952 (boat license); licensed under MSO 1960 (Sabah) and (Sarawak); and owned/leased by Malaysian Government, State Government, or Port Authority."Secondly, Muhammad’s comments relate to trade 'currently done with wooden hull ships and smaller vessels' which weigh less than 15 tonnes and are therefore not subject to the cabotage policy in Malaysia which requires all vessels involved in domestic shipping to have a valid Domestic Shipping License (DSL)."Instead of the cabotage policy, this issue concerns the recognition of trading certificates for Non-Convention Vessels (typically vessels below 500 gross tonnage) from Indonesia mostly used to conduct barter trade," said Dr Wee."Covid-19 testing is still a common requirement for travelling to Asia.He added that in December 2018, Malaysia together with eight other Asean member states (except Myanmar then) signed an MOU on the Mutual Recognition of Certificates for Non-Convention Vessels (NCV).

Under this MOU, Malaysia recognises NCV certificates as prescribed by the central maritime administration of the respective flag state.The Marine Department allows the entry of NCVs from Indonesia to Malaysian ports on the condition that they comply with and possess the necessary safety certificates as prescribed by Indonesia’s Directorate General of Sea Communications, to be carried onboard Indonesia’s NCVs, he said.Later in his speech, Dr Wee said for 2022, Malaysia is projecting an increase of between 197% and 347% year-on-year (YoY), representing between 32.This is practised throughout Malaysia in managing barter trading vessels from Indonesia, including Sabah and Sarawak."The Transport Ministry clarifies that there is no hindrance to continuing small vessel trade between Malaysia and Indonesia."We are always open to discussion and dialogue."Air cargo traffic for 2022 is forecasted to grow between 3.

"We invite foreign missions and other stakeholders to dialogue with the Transport Ministry in order to understand related transport and logistics matters and policies under the Ministry’s purview," said Dr Wee.Article type: metered.

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