Sabah business groups back say bringing back barter trade could boost local economies

KOTA KINABALU, May 10 — Several of Sabah’s leading trade and maritime associations have voiced strong support for Chief Minister Datuk Seri Panglima Hajiji Noor’s proposal to revive barter trade along the state’s eastern maritime borders and northern Kudat region.

In a joint statement, the Sabah Shipping Agents Association (SSAA), Sabah Freight Forwarders and Logistics Association (SABFFLA), ASEAN-China Commerce Association (ACCA) and Kadazandusun Chamber of Commerce and Industry (KCCI) described the move as a strategic initiative aligned with the Sabah Maju Jaya (SMJ) 2.0 roadmap and the state’s Blue Economy agenda.

While expressing support for reviving such activities through the Sandakan, Tawau and Lahad Datu hubs, SABFFLA said that although barter trade volumes are smaller compared to containerised cargo, the sector remains an important source of income for logistics operators and local service providers.

The association also welcomed the Chief Minister’s announcement regarding the Lahad Datu Customs, Immigration, Quarantine and Security (CIQS) complex for passengers, saying the inclusion of barter trade activities would further maximise the facility’s potential.

Meanwhile, ACCA president Datuk Lim Shau Hui said the suspension of barter trade between Kudat and Palawan in the southern Philippines had contributed to economic stagnation in the district.

He urged the government to expedite the revival process while ensuring excessive bureaucracy and administrative hurdles do not delay implementation.

SSAA president Chow Yang Ann said traders from the southern Philippines relied heavily on Sabah’s port infrastructure, pointing to the steady flow of containerised cargo between Sandakan and Zamboanga as evidence of strong regional demand.

“Formalising and regulating barter trade will further optimise our port facilities,” he said.

KCCI Trade and Investment representative Carl V Moosom, who previously led the BIMP-EAGA Business Council Sabah, said reopening regulated barter trade routes would generate positive economic spillover effects for local districts.

“It is economically logical for communities in the Tawi-Tawi archipelago and Palawan to source goods from Sabah rather than the more distant Philippine mainland,” he said.

The coalition added that the initiative would strengthen Sabah’s position as a regional transshipment and trade hub within the BIMP-EAGA region by leveraging the state’s strategic geographical location and integrating barter trade activities with the new CIQS facilities. — The Borneo Post