By WU VUIDE
KOTA KINABALU: Two new Sabah First initiatives will ease costs for local companies and logistics players, said Deputy Chief Minister III Datuk Ewon Benedick.
The initiatives cover a special land lease package for Sabah companies at industrial parks and lower container storage charges at Sepanggar Bay Container Port.
The Industrial Development, Entrepreneurship and Transport Minister (MINDET), said both measures were part of efforts to turn the Sabah First agenda into practical policies benefiting local industry.
“At the Sabah Cabinet meeting last Wednesday, I presented a MINDET proposal to introduce and facilitate a special lease package for Sabah-based companies in industrial parks, beginning with Kota Kinabalu Industrial Park (KKIP).
“At KKIP, industrial land is currently leased for 30 years to investors or manufacturers, with the full lease payment required within two years.
“This applies to all companies, including Sabah-based companies, and poses a major challenge, particularly in terms of cash flow and securing bank financing, which requires collateral,” he said in a statement here yesterday.
Under the new package, Sabah companies expanding their operations at KKIP will be allowed to pay the lease annually instead of settling the full 30-year amount within two years.
Ewon said the Sabah Cabinet had agreed to the proposal.
MINDET will also work with Credit Guarantee Corporation (CGC) to facilitate financing for local companies needing capital to build factories or purchase machinery.
“I welcome Sabah-based companies seeking to expand their operations at KKIP to obtain further information from KKIP following the Cabinet’s decision,” he said.
The existing lease policy will remain for multinational, listed and foreign companies, he added.
On the second initiative, Ewon said container storage charges at Sepanggar Bay Container Port would be reduced from Sept 7.
He said he agreed to extend the free storage period to four days from the current three days following discussions with the Sabah Freight Forwarders and Logistics Association (SAFFLA), Sabah Shipping Agents Association (SSAA) and Sabah Ports Authority (LPPS).
For the fifth to seventh days, the new rates for 20-foot containers will be RM8 for empty containers and RM16 for loaded containers.
For 40-foot containers, the rates will be RM15 for empty containers and RM30 for loaded containers.
Ewon said the lower charges would help logistics operators while discouraging containers from remaining at the port for extended periods.
“Some containers had previously remained at the port for as long as 407 days,” he said.
He said LPPS had also been instructed to dispose of containers left at the port for more than 21 days under the authority of the LPPS Enactment.
The measures will remain in place while the Sepanggar Port expansion project is completed. The project is currently 65 per cent complete.
KKIP has also provided parking areas for container trailers waiting to collect containers from the port.
The facilities will also serve trailers collecting containers at night when delivery destinations are closed.
Ewon said the initiatives reflected MINDET’s commitment to strengthening Sabah’s industrial and logistics sectors while supporting local companies and industry players.
‘I welcome Sabah-based companies seeking to expand their operations at KKIP to obtain further information from KKIP following the Cabinet’s decision’ – Ewon
