Tripartite barter trade will flourish when Indo capital moves to Kalimantan

Sabah Chief Minister Datuk Seri Mohd Shafie Apdal said that Indonesia's robust economy and huge population will greatly contribute to the volume and value of the existing barter trade. - NSTP/MALAI ROSMAH TUAH
By Olivia Miwil - August 26, 2019 @ 1:48pm

KOTA KINABALU: The shift of Indonesia's capital to Kalimantan will boost economic activities in Sabah, including via tripartite barter trading between Malaysia, Indonesia and the Philippines.

Sabah Chief Minister Datuk Seri Mohd Shafie Apdal said that Indonesia's robust economy and huge population will greatly contribute to the volume and value of the existing barter trade.

"In the past, the value of the barter trade reached RM2 million.

"As the population is growing and capabilities (in trading) are increasing, demand will also increase," he said, adding that the construction of the Pan Borneo Highway will also facilitate trade activities.

Mohd Shafie, who is also state Finance Minister, was speaking to reporters after launching a barter trade zone incorporating Kudat, Sandakan and Tawau.

He said that the Finance Ministry has issued 43 barter trade licences in the three areas, which were picked for the availability of trade facilities and their proximity to the Philippines and Indonesia.

"This tripartite trade (agreement) between Sabah (Malaysia), Indonesia and the Philippines was discussed and agreed upon among Asean countries during a meeting in Bangkok last year.

"There are several new regulations made for the trade, which include no limit being set on trade volume (provided that all items are agreed upon by) the trade partners," he said, adding that security authorities will play important roles in ensuring the safety of goods and trade activities.

Aside from the economic aspects, Mohd Shafie said that barter trade activities will also bring cultural benefits to communities in the three countries.