Malaysia praises private sectors in Sabah, Zamboanga

ZAMBOANGA CITY, Philippines (Mindanao Examiner / Sept. 26, 2010) – Malaysia has praised efforts by private sectors in Sabah and Zamboanga City in the southern Philippines to improve bilateral trade between the two neighbors.

Malaysia and the Philippines are part of the East ASEAN Growth Area to which Indonesia and Brunei are also members. The four countries have forged an agreement to achieve certain objectives, which include facilitating the free movement of people, goods, and services; share common infrastructure and natural resources; and pursue economic complementation.

While ASEAN is an acronym of Association of Southeast Asian Nations, an alliance of 10 countries - Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma, Cambodia, Laos, and Vietnam. Its aims include the acceleration of economic growth, social progress, cultural development among its members, the protection of the peace and stability of the region, and to provide opportunities for member countries to discuss differences peacefully.

Malaysia’s State Industrial Development Minister Datuk Raymond Tan Shu Kiah said this was crucial to face changes and challenges in the global business. He said the private sectors in Sabah and Zamboanga have agreed to find the right mechanism to boost bilateral trade under the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area.

“The move will pave the way for higher bilateral trade volume,” Malaysia’s Bernama news agency quoted him as telling reporters after discussions with the private sectors, consultant companies and Manila-based Asian Development Bank involved in the Sandakan-Zamboanga bilateral trade.

It said among matters discussed during the meeting were the upgrading of customs, immigration and port services and increasing the number of ferries plying between Sandakan and Zamboanga.

“The improvements would facilitate higher two-way trade volume and woo more traders from neighboring countries to do business in this district,” Tan said referring to Sandakan, the second largest city in Sabah whose harbor is an inlet of the Sulu Sea.

He said the main focus was to upgrade services at Sandakan and Zamboanga ports as they were the gateways between Sabah and the southern Philippines. He said the Asian Development Bank also appointed a consultant company that would conduct a study and provide suggestions to improve services at the two ports.

“This is a positive development to boost bilateral trade between the private sector here and in Zamboanga. I hope after the study has been completed will be followed up with implementation of the ways recommended to improve services. This is crucial because of the keen competition in the global business environment,” he added.

Zamboanga City which lies on the tip of western Mindanao is the center of trade of Sulu, Basilan and Tawi-Tawi, all part of the Muslim autonomous region. It is also why Zamboanga remains one of the wealthiest cities in Mindanao.

In Sulu, Governor Sakur Tan is also pursuing efforts to hasten trade and commerce between Sabah and his province. He said the recent renovation of the Sulu airport would boost domestic trade and in return increase the flow of commerce in the provinces and Zamboanga City.

“We have trade and various programs that aim to attract investments and we are linking up with our neighbors to help in pursuing the mission and vision of the BIMP-EAGA,” Tan said.

The airport in Sulu, whose renovation was funded by the US and the Philippine governments, can accommodate larger aircrafts. And Sulu’s bustling ports are also gateway to Malaysia and Indonesia. (Mindanao Examiner)

Sandakan Still A Trading Center For Many Filipinos

SANDAKAN, Sabah (Haslin Gafor / 09 Nov) - Sandakan, the second largest town in Sabah is not only known as the gateway for eco-tourism, but also an important trading post for many Filipinos from southern Philippines.

This well established trade relationship has been in existence for ages and only started with barter trading between the two countries. The busiest part of this town is no doubt the jetty where vessels and boats referred by the locals as 'kumpit' are anchored.

The morning when the writer visited the jetty, several of the vessels and the 'kumpit' from Sitangkai Island in southern Philippines were berthed there.

NO BARTER TRADE

What's interesting is that even though trading no longer involves the exchange of goods, the transactions with the local traders are still widely referred as barter trade. Even the jetty where the boats drop their anchors is still known as the Sandakan Barter Trade Jetty.

This is probably due to the fact that the locals have become so accustomed to the barter trade term and continue to use it until today.

The jetty is the focal point of the trading activities.

Roslan Ahmad, an officer with the Sandakan Department of Port and Pier, told Bernama that trading between local traders and their counterparts from southern Philippines now only involved cash and the exchange of goods.

Traders are also subjected to the regulations set by the Malaysian authorities including declaring the goods sold and purchased to the Malaysian Customs.

SECURITY INSPECTION A PRE-REQUISITE

According to Roslan, the boats from southern Philippines coming to Sandakan must be vetted by the marine police beforehand. Most of the boats originate from Zamboanga, Jolo Island, Basilan Island, Sitangkai Island and Tawi-Tawi.

Before the Philippine traders drop their anchor at the jetty here, they have to get clearance from marine police at Berhala Island, not far from Sandakan.

Once berthed at the jetty, the travel documents of the skipper and crew will be scrutinized by the Immigration Department and by the Health Department.

TYPES OF GOODS TRADED

The main necessities traded are rice, sugar, flour and cooking oil besides eggs, noodles, furniture and household fixtures.

"The traders prefer to come to Sandakan as it is closer to the islands in southern Philippines besides the fact that the trading link was established since long ago. Sandakan is nearer than Manila for the traders," said Roslan.

"Besides, goods of quality are also the main pull factor for these traders," he said, adding that they seldom sold their own goods here unless there was a demand from the people in Sandakan.

But even then, the small quantity of goods that they bring here are normally cosmetics and marine products.

COME IN GROUPS

On the number of boats that come to trade in Sandakan, Roslan put the figure at 800 to 900 each year. He said the boats would normally come in groups and anchor at the jetty for several days to procure supplies before returning.

The Sandakan barter trade jetty is open from Monday to Friday while on Saturday it operates half day.

The jetty is closed on Sunday. Besides Sandakan, similar trading activities also occur in Tawau involving traders from Indonesia and the Philippines.

CONTRIBUTION TO THE ECONOMY

The purchasing power of traders from the southern Philippines also contributes to Sandakan's economy and keeps the barter trade jetty busy.

A local trader, Pandi Marzuki, 46, said he had been helping his cousin to handle the shipment of goods to Sitangkai Island.Pandi, who lives in Sandakan, said his cousin's 'kumpit' would come to Sandakan twice a month and each trip would take the whole day and night.

"The traders from southern Philippines prefer to get their supplies from Sandakan as the goods here are cheaper. "Furthermore, Sandakan is nearer compared to Manila, which will take two days and one night to reach," he said.

A boat owner from Zamboanga, Suharto, said he normally buy rice, flour, sugar, cooking oil and other items, including mattresses in Sandakan. "We come to Sandakan once a month and each trip takes 30 to 40 hours depending on the weather," he said in fluent Malay.