Federation of Malaysian Manufacturing hails removal charges delay

LocalBusiness & Finance
20 Jun 2025 • 10:29 AM MYT
Daily Express
Daily Express

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By: Sabah Publishing House Sdn Bhd

Kota Kinabalu: The Federation of Malaysian Manufacturing, (Sabah) praised DP World for its pragmatic decision to defer the enforcement of the removal charges implementation to Sapangar Bay Container Port’s users from June 4, 2025 to July 15, 2025.

It was to gauge feedback from port users and extend the free storage period at the port container yard from five (5) days to eight (8) days.

The decision reflects a thoughtful approach to address the challenges faced by the industry, particularly as the manufacturing sector continues to grapple with uprising operational costs.

window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});These additional charges will make import cost more expensive and products less-competitive in the market as the cost would be passed on to consumers. The deferment is necessary to provide industries with the transition period to prepare for the changes.

DP World imposed removal charges effective June 4, 2025 with RM45.00 per day for a 20-footer and RM90.00 per day for 40-footer container that exceed the limit of five (5) days at container yard in effort to reduce the yard congestion issue.

Increased cargo volume from increased number of vessels calling on Sapangar Bay Container Port (SBCP) coupled with the surge in export containers, of some additional 3,500 per month from China and Korea investors are the main reasons for this congestion.

To alleviate the yard congestion issue, the Branch urges members and other port users to accept containers during off peak periods, namely, Saturdays, Sundays, Public Holidays and after 5.00pm on working days as a way to ease congestion.

FMM hopes with the completion of expansion project aims to double SBCP’s capacity by 2027 will ensure prompt and more efficient discharge of import containers and ease yard congestion.

FMM Sabah is thankful for the great commitment demonstrated by the Ministry of Industrial Development & Entrepreneurship, under the helm of YB Datuk Phoong Jin Zhe who had been attentive to the plight of port users, and on numerous occasions, personally engaged with the management of DP World and visited the Port facilities.

Whilst the yard congestion is a good sign of increased in exports and imports activities, we call on the Government gives greater focus to be accorded to growth of exports by local investors and to rethink future foreign investments until port infrastructure is well-developed and ready to cope with increased cargo volume.