Sabah Chief Minister Datuk Seri Hajiji Noor said by establishing ferry services, barter trading at Kudat could be revived.

KOTA KINABALU (May 29): The Sabah government has proposed to establish sea linkage between Kudat and Palawan, Philippines to revitalise Kudat's economy, said Chief Minister Datuk Seri Hajiji Noor.

Hajiji said the matter was discussed with Transport Minister Anthony Loke who later toured Kudat with Kudat Member of Parliament Datuk Verdon Bahanda.

"By establishing ferry services, barter trading at Kudat could be revived," he said in a statement after the Chief Minister's Department post-cabinet meeting at Menara Kinabalu here on Wednesday.

Barter trade could help to revive Kudat's sluggish economy, said Hajiji, adding that the opening of Kudat port may also be a berthing point for ships sailing from southern Mindanao to Labuan.

"Presently, sea vessels carrying goods from Southern Mindanao go directly [to] Labuan. If we open up the Kudat port, we could tap into the Southern Mindanao-Labuan shipping route," he added.

According to him, Kudat Port would have all the necessary facilities, especially the Customs, Immigration, Quarantine and Security checkpoints.

The chief minister said he has also discussed the matter with Sabah police commissioner to look into the security aspect for deliberations at the State Security Council.

Meanwhile, Hajiji said all state government officers must fully understand the meaning of the "Sabah First" policy.

"Sabah First means we must prioritise Sabah’s interests in all our endeavours. Foreign and non-Sabah investors looking to set up business ventures here must have local Sabah interest holding a 30% stake in the venture,” he said.

Hajiji said the Sabah Cabinet has also approved Kota Kinabalu City Hall’s revised Sembulan Urban Renewal Scheme.

"We have agreed to allow land owners to stay there once the development is completed with agreed monetary compensation," he said.

The Chief minister also announced that Sabah will host this year's Malaysia Day celebrations on Sept 16, and state Tourism, Culture and Environment Minister Datuk Christina Liew will co-chair the organising committee with Communications Minister Fahmi Fadzil.