Economic affairs counsellor Muhammad Muhsinin Dolisada said trade conducted off Tawau’s waters and Kalimantan, Indonesia, was currently done with wooden hull ships and smaller vessels, which were not recognised under the International Maritime Organization’s (IMO) regulations.

“This situation is not unique to Sabah but also happens between Johor and Batam (an Indonesian island).

“The restrictions have to be resolved between the federal government of Malaysia and our central government,” the Daily Express quoted him as saying.

Muhsinin said the issue had been brought up many times over the years but remained unresolved, adding that the consulate-general could only urge the two governments to settle matters.

He believed that Sabah and Indonesia were both ready to resolve the issue but were awaiting action from Putrajaya.

Cabotage refers to the right to operate vessels in a particular territory, with laws largely meant to protect domestic industries from foreign competition, ensure the safety of a country’s borders, and regulate activities in a country’s waters.

Under cabotage limits, the IMO restricts trade to be conducted with steel hull vessels.