Border Economy: Issues and Problems Faced by Traders in The Rantau Panjang Duty-free Zone

Rantau Panjang Duty-free Zone has unique features and is different compared to other duty-free zones in Malaysia. Prior to being declared as a duty-free zone by the government, the area is a typical village which possesses facilities such as schools, mosques, clinics and other basic amenities. After being declared as a duty-free zone, the boundary include all original dwellings in the zone and its facilities.

According to the information obtained from the Pasir Mas District Council (Rantau Panjang branch), in 2010, there were 1,887 traders in duty-free zone, including some traders outside the zone, under the administration of the Pasir Mas District Council. Based on the records, there were 2,153 homes, three schools (primary and secondary), a clinic and a market in this duty-free zone with an estimated population of about 30,800 people.

There are several types of trader outlets in the duty free zone such as the District Council-owned shops which are rented to the traders, privately-owned shops, traders in the area known as the 'Horse Barn Marketplace‟ and traders who use carts. 'Horse Barn Marketplace‟ is a temporary business site provided by the District Council for rentals to the traders. However, beginning in 2013, all traders in the 'Horse Barn Marketplace‟ will be directed to move to a three-storey building built close to the the existing business site. However, most of the traders are not willing to move because the rental rates are much higher, besides other concerns such as the loss of their regular customers.

Three border gates into the duty free zone are controlled by customs officers. Immigration officers are not placed at the border checkpoints because all the border gates are located in the Rantau Panjang District (Malaysia territory).   All matters related to immigration are carried out at the Sungai Golok – Rantau Panjang bridge linking the two countries. All matters in the duty free zone area are under the administration and enforcement of the Pasir Mas District Council (Rantau Panjang branch). Meanwhile, the areas has no border fence but are only separated from Thailand by the Sungai Golok waters whose width are only around 100 meters.

This article seeks to identify issues and problems faced by traders in the Rantau Panjang Duty Free Zone and problems related to the enforcement along the waters of Sungai Golok - Duty free Zone. There are two issues and problems discussed in the article. First, the issue of competition between local traders with traders from Thailand who rent premises in the duty-free zone. Second, the issue of enforcement along the waters of Sungai Golok and Rantau Panjang Duty-free Zone.

The waters along Sungai Golok which is about 29.9 miles long starting from Pengkalan Kubor, Tumpat to Rantau Panjang, Kelantan is the main border that separates the the state of Kelantan (Malaysia) with the Territory of Narathiwat, Thailand. The enforcement aspect at the boundary shows many difficulties faced by security enforcement agencies who worked patrolling the border of the two countries. Even though there are several security enforcement agencies that patrol the border, such as the Anti-Smuggling Unit (UPP), Customs Unit (enforcement), and the Armed Forces (replacing PGA duties starting November 2010) to control the entry and exit of illegal goods through the waters of Sungai Golok, the movement of illegal goods still goes on unabated.

This is due to too many illegal jetties built along the boundary waters of Pengkalan Kubor, Tumpat to Rantau Panjang Duty-free Zone that can be used for boat routes which carry goods illegally either from the town of Golok (Thailand) to the Rantau Panjang Duty-free Zone or vice versa. For example, there are more than 130 bases for the illegal smuggling of goods along the border, in fact there are dozens of illegal base along the waters of Sungai Golok and Rantau Panjang Duty-free area alone.

The main goods which are frequently brought into Thailand via these illegal bases along the duty-free zone are sugar, cooking oil and other essentials. Meanwhile, even more goods from Thailand are illegally brought into the duty-free zone through the waters of Sungai Golok. They include rice, imitation branded- clothing, fruits & vegetables, kitchenwares and others.

There are many complaints from local traders in the duty-free zone about the bureaucracy at the local authority level, which results in foreign traders being able to do business in the zone. The presence of foreign traders causes price wars between them and the local traders. Ironically, how do these foreign traders get their business licenses since the requirement for getting a license is for those who possess an identity card. Local traders  experience problems when they are forced to vacate their rented stalls when they are unable to pay high rents which do not commensurate with their daily incomes. Problems also occur when local traders are forced to move their stall to under the trees when foreign traders‟ stalls block customers‟ view to the formers‟ stalls.   This area does not provide business opportunities for local traders as it is clearly monopolized by foreign traders. From another angle, the management problem in the duty-free zone is in terms of the haphazard arrangement of the stalls as well as the problem of unsystematic maintenance of garbage which makes the area seems dirty and spoils the view,   especially for tourists.

 



The waters of Sungai Golok