Kota Kinabalu: Deputy Chief Minister III Datuk Ewon Benedick has announced two new Sabah First initiatives aimed at empowering local companies and reducing costs for players in the logistics industry.
Ewon, who is State Industrial Development, Entrepreneurship and Transport Minister, said the initiatives were part of the Ministry of Industrial Development,Entrepreneurship and Transport’s (Mindet) efforts to work with local companies and industry players to translate the Sabah First agenda into policies and facilities that benefit them.
He said the Sabah Cabinet agreed last week to introduce and facilitate a special lease package for Sabah-based companies at industrial parks.
As KKIP Chairman, Ewon said the existing policy requires industrial land to be leased to investors or manufacturers for 30 years, with the full lease amount payable within two years.
“The policy applies to all companies, including Sabah companies, and this poses a major challenge, particularly in terms of capital flow and obtaining bank financing that requires collateral,” he said.
Under the special package, Sabah-based companies seeking to expand their operations at KKIP will no longer be required to pay the full lease amount for the 30 years within two years.
Instead, they will be allowed to make annual payments.
Ewon said Mindet would also collaborate with the Credit Guarantee Corporation (CGC) to help meet the financing needs for local Sabah companies seeking capital to build factories or purchase machinery.
The existing policy, however, will continue to apply to multinational, listed and foreign companies.
On the second initiative, Ewon said the decision to reduce container storage charges followed a meeting of the task force monitoring the implementation of the 10-point action plan to address congestion at the Sepanggar Bay Container Port.
The measures are being implemented while awaiting the full completion of the port expansion project, which is 65 per cent complete.
Following engagements with the Sabah Freight Forwarders and Logistics Association (SAFFLA), Sabah Shipping Agents Association (SSAA) and Sabah Ports Authority (LPPS), Ewon said the container storage charges had been reviewed and reduced.
Under the new rates, the first four days of storage will be free, compared with the current three-day free period.
For the fifth to seventh days, the charge for a 20-foot container will be RM8 for an empty container and RM16 for a loaded container.
For 40-foot containers, the rates will be RM15 for empty and RM30 for loaded.
The new rates, which are lower than the current charges, will take effect on Sept 7.
Ewon said the revised charges were intended to assist logistics players while also serving as a deterrent against containers being left at the port for extended periods.
He said there had previously been cases of containers remaining at the port for up to 407 days.
LPPS has also been asked to dispose of containers that remain at the port for more than 21 days, in accordance with its powers under the LPPS Enactment.
Meanwhile, KKIP has provided a parking area for container trailers waiting to collect containers from the port, as well as for trailers transporting containers at night when their delivery destinations are closed.
Ewon said the two initiatives reflected MINDET’s commitment to strengthening Sabah’s industrial and logistics system while supporting local companies and industry players.
