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...

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Main Authors:	Mhd. Ruslan, Siti Marsila, Mat Ghani, Gairuzazmi, Khalid, Haniza
Format:	Article
Language:	English English
Published:	Faculty of Economics and Administration, University of Malaya 2019
Subjects:	H Social Sciences (General)
Online Access:	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

id	iium-73652
recordtype	eprints
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
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	H Social Sciences (General)
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
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.
format	Article
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
title	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_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_sort	influence of cabotage policy on price disparity between peninsular malaysia and sabah
publisher	Faculty of Economics and Administration, University of Malaya
publishDate	2019
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
first_indexed	2023-09-18T21:44:24Z
last_indexed	2023-09-18T21:44:24Z
_version_	1777413353599139840

The influence of cabotage policy on price disparity between peninsular Malaysia and Sabah

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