Forum: Imposing toll fee on ships like dropping rocks on our own feet
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Singapore is right to refuse to pay or negotiate tolls with Iran for passage through the Strait of Hormuz.
I am appalled and alarmed that the Indonesian Finance Minister had even briefly suggested imposing a similar levy on ships transiting the straits of Malacca and Singapore (Indonesia finance minister floats, then backs off on Strait of Malacca levy, April 22).
Many livelihoods depend on the free navigation of this strait. It is a critical international shipping lane with about 25 per cent of all traded goods passing through it. Any toll collection will never make up for the loss of global trade as shippers avoid this part of the world.
What if all countries bordering water bodies start to do the same, imposing a toll fee on ships transiting near their borders?
Costs of goods and services will increase as traders will charge higher prices to make up for the toll fee. The consequences could be very adverse, resulting in loss of income for millions of families.
The provision for freedom of passage must be a global public good. No fee should be imposed. We would only be dropping rocks on our feet if we take a myopic view of restricting free passage through any strait, especially the straits of Malacca and Singapore which are one of the most critical maritime waterways in the world.
Foo Sing Kheng
