KOTA KINABALU: The Federation of Sabah Industries (FSI) wants shipping companies to impose equal rates on industries in Sabah.

Its president Datuk Wong Khen Thau said the move would lead to a win-win situation in the implementation of the cabotage policy while preventing high prices of goods shipped to Sabah and Sarawak.

Under the cabotage policy, only Malaysian-flagged ships are allowed to transport goods in the domestic trades.

According to Wong, the FSI has never opposed the implementation of the cabotage policy, but does not agree with price manipulation by shipping companies.

"We want fairness in this matter. It is not wrong in implementing the policy in order to protect shipping companies. But don't forget the industries.

"Sabah also pays a certain rate for shipping companies to grow. But the shipping industry has not expanded as expected," he said on Saturday.

He said countries like Singapore, Taiwan, Hong Kong and Japan that do not implement the policy have been able to develop and compete actively in the international market.

"Even with that (local competition), the cost imposed on industries in Sabah is much higher than in Peninsular Malaysia and this is not reasonable.

"The cost we have to pay is far higher than the standard cost to export and import goods at the international level," he said. Bernama