NON-SUBSIDISED cooking oil will be offered as an exchange item as Sabah restarts barter trade with Indonesia and the Philippines next week. 

Chief Minister Mohd Shafie Apdal in announcing this said the cooking oil supply in Sabah will be divided into two – for local consumption and for export.

“We will allow the sale of cooking oil when we officially launch barter trade in Kota Kinabalu next week,” he said after officiating the Karnival Usahawan Desa at the Likas Sports Complex in Kota Kinabalu.

He said the state government has appointed two firms for the purpose – Benta Wawasan and Sawit Kinabalu.

Benta Wawasan will focus on producing cooking oil meant for local consumption and this will be subsidised.

“Sawit Kinabalu, meanwhile, will focus on exporting cooking oil to our barter trade partners – Indonesia and the Philippines.”

Also present were federal Rural Development Minister Rina Harun, Sabah Industrial Development Minister Wilfred Madius Tangau and Sabah Rural Development Minister Ewon Benedick.

Shafie said the move is one of the ways the state can do to stop the smuggling of cooking oil out of the country, while at the same time increase the state’s revenue from exports and earning of the local smallholders.

“The move will also ensure that all the excess supply of crude palm oil that is held in containers and refineries at present will be put to good use due to the lower prices of crude palm oil at present,” he said.

Barter trade was stopped in Sabah in April 2016 following a spate of cross border kidnappings in the Sabah East Coast region.

Shafie previously announced that he will reopen barter trade this year along with strict standard operating procedures to ensure the security and smooth process of trading.

Filipino traders are permitted to bring to Sabah sawn timbers, coconut items like copra and other stipulated products while they are at liberty to buy and trade Sabah products like rice, sugar, flour and other regulated food items or locally produced essential items.

Barter trade brings around RM350 million to the state economy and is active in Tawau, Sandakan and Lahad Datu.

At present, the Sabah government has identified northern Kudat, east coast Sandakan, Tawau and Lahad Datu as key trading points. – August 24, 2019.