NUNUKAN (KALIMANTAN), Nov 18 (Bernama) -- The currently slow intra-regional trade within the Brunei Indonesia Malaysia Philippines-East Asean Growth Area (BIMP-EAGA) could get a boost with the setting up of a border-trading centre in Sebatik Island, Tawau, says its state assemblyman.

The Sebatik Island, divided into the Malaysian side and an Indonesian side, is a traditional barter trade route between Tawau in Sabah and Nunukan, the nearest Indonesian island border town in East Kalimantan.

Nunukan is also a major point of entry for Indonesians and their goods into Sabah.

Realising the potential of Sebatik Island, Sebatik State Assemblyman Datuk Dr Patawari Patawe has submitted a proposal to the Prime Minister's Department to set up a border trading centre including a Customs, Inspections and Quarantine (CIQ) centre on a 100-hectare site on the island.

The site proposed at Tg Arang on the island is currently covered with mangroves.

Last week, about 60 delegates comprising officials from state and federal government agencies including the Director General of Implementation Coordination Unit of the Prime Minister's Department Tan Sri Khalid Ramli were taken on a tour of the proposed site by Dr Patawari.

The guests also toured the site of a border trade centre, Lamijung, being developed in Indonesia's Nunukan which is an island opposite Sebatik Island.

Dr Patawari told Bernama there were active border trading activities between both countries with coal, crude palm oil, oil palm fresh fruit bunches, wood products, cooking utensils and plastic products brought into Tawau, and processed food products like chocolate-malt drinks, cooking oil, chicken wings, building materials and electronic products exported to Nunukan.

When asked about the value of the border trade, Dr Patawari said the registered border trade value was about RM100 million a year. He added that the value could be even higher if the proper trade facilities like Customs and Immigration were established here.

Dr Patawari said about 100,000 tonnes of CPO from Kalimantan are imported via Tawau.

"If this place is well organised, we could certainly also promote our cars such as Proton, Perodua, Naza and motorcycles such as Modenas could be sold,"

Nunukan has a market population of 150,000 and it is a gateway to other places like Tarakan in Kalimantan, Celebes and Java, said Dr Patawari.

"I hope that the visit by Tan Sri (Khalid) and the delegation of other directors would be able to show how important it is for us to develop Tg Arang as fast as possible," he said.

This would provide a place for trade between the BIMP-EAGA countries.

He said Indonesian officials in Nunukan including the Nunukan District Secretary were also concerned about the slow pace of development in border trade facilities on the Malaysian side.

Indonesia has meanwhile moved ahead with their border trade facilities in Lamijung.

During the visit, Bernama found that the Indonesians have already built the jetty for ships to berth and the development of a row of shoplots was in the process of completion.

Dr Patawari also expressed hope that the development of the border trading centre could take place under the Ninth Malaysia Plan and further boost intra-regional trade.

Intra-trade in this region cannot be expanded if they lacked facilities to support the growth, he said.

Meanwhile, the chairman of Sabah Ports Authority, Datuk Dr Zaki Gusmiah who was also a delegate at the tour said the trip was an eye opener.

He said there was need to develop the border trade facilities on the Malaysian side to complement the development taking place in Nunukan.

The ports in Tawau are already overcrowded as they are not only handling cargoes and containers but also travellers from Nunukan to Tawau and vice versa using ferry services, he said.

The absence of proper facilities has also provided loopholes for smugglers to bring in products like cigarettes and batik into Tawau through alternative routes to avoid taxation, Dr Zaki added.

Meanwhile, Indonesian Consul in Tawau, Dr Azhari Kasim said there was a lack of record on the bilateral trade between Tawau and Nunukan but with the establishment of such a centre in Tg Arang, all the intra regional economic activities could be monitored and recorded.

-- BERNAMA