FASC: Give perks to boost growth of local shipping lines

KUALA LUMPUR, Sept 19 (Bernama) -- The government should give more incentives to develop more home-grown shipping lines to reduce outflow of foreign exchange (forex).Federation of Asean Shippers' Councils (FASC)'s chairman, Ng Lip Yong, said such a move was vital to cater to local demand from various sectors as well as boost the exporters' competitive edge."About 90 percent of our goods exported are carried by foreign vessels. We are losing a big chunk of forex every year."If more incentives are given, then it will encourage the growth of more local shipping lines," he told reporters after FASC's annual general meeting here today.Ng said last year, the country's total trade amounted to US$291.5 billion."This is landmark achievement," said Ng, who is also Deputy Minister of International Trade and Industry.He said as the country's trade grew, the deficit increased."The country recorded a deficit of RM19.6 billion in its transport services trade and paid RM35.1 billion to foreign carriers," he said.Ng said FASC also encouraged local exporters not to export on free-on-board basis but on cost, insurance and freight basis."That is why FASC is promoting double tax deduction on freight costs for usage of local carriers of member countries," he said.FASC, set up by five members of national shippers' councils in Association of South-East Asian Nations (Asean), comprises Malaysia, Singapore, Indonesia, the Philippines and Thailand. It aims to exchange views and information on issues faced by Asian shippers.Ng said under Budget 2008, the Customs Department would reduce the 16 Customs forms to four, effective Jan 1, 2008."It is a good effort as it is easier for people to file applications directly and will save costs," he said.Ng also urged Asean members to work together to benefit from globalisation."Currently, intra-Asia trade is mainly carried by foreign vessels," he said.He said another concern among shippers was the recent US government plan to carry out 100 percent scanning on all cargo bound for US within 2008-2013."This will impact everybody and increase cost. We foresee this will cause congestion and delays at the ports."We are still studying the implications and need to find out how to go about it because US is the biggest market for most Asian countries," he said.