—This paper argues that Cabotage policy as a
non-tariff barrier has harmed the domestic economy and is
inconsistent with the premise of trade liberalisation agenda.
The effect of Cabotage policy limits market access and has
formed monopoly in the shipping industry. The policy might
increase efficiency in term of technology and consolidating
resources in one participant of the industry but does not
improve the overall welfare the industry. This paper proposes a
mid-way-out approach by taking incremental steps towards
change and requires a committee system to review and
streamline the Cabotage policy. We named the committee as
logistic committee that envisioned working on towards
liberalizing the transportation and logistics industry. It is
proposed that the committee decision as binding and as primary
source of policy making input.
—Cabotage policy, committee systems,
F. Suffian, M. R. S. Abdul Karim, and A. K. Rosline are with the
Universiti Teknologi MARA Cawangan Sabah, Locked Beg 71, 88997
UiTM Sabah Kota Kinabalu (e-mail: firstname.lastname@example.org,
K. S. Fadzil is with University Malaya 50603 Kuala Lumpur (e-mail:
Cite:Firdausi Suffian, Mohammed Rahezzal Shah Abdul Karim, Abdul Kadir Rosline, and Kamal Solhaimi
Fadzil, "Policy Fiasco: The Sabotage of Cabotage Policy Malaysia," International Journal of Social Science and Humanity vol. 3, no. 6, pp. 514-517, 2013.