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Malaysia: Cabotage Relaxed on East/West Trade
The Malaysian Prime Minister announced that it would be exempting the states of Sabah and Sarawak in east Malaysia as well as the federal territory of Labuan. The changes follow calls from the leaders of both Sabah in the north and Sarawak in the west of Borneo.
The cabotage law has been blamed for high shipping costs between east and west Malaysian ports and the move is designed to reduce these costs.
The exemption applies to the trans-shipment of goods from the Malaysian peninsula to the island of Borneo, but not the trans-shipment of goods within the two states and the eastern federal territory.
