On 1 January , the Government of Malaysia implemented a national cabotage policy with an aim to protect and promote a strong national. Malaysia’s cabotage policy was lifted in June Credit: Westports. Malaysia’s liberalisation of the cabotage rule has hurt local. Malaysia Shipowners’ Association called for review of the cabotage policy in Malaysia, noting that it did not reduce the price of goods and is.

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An innovative financial approach. Among other things, he said the liberalisation of the cabotage policy had led to more foreign ships moving freely in Malaysian waters as domestic shipping licence were no longer needed.

At a time when many offshore support vessel “OSV” owning companies are struggling due to the global fall in oil prices and over capacity, those owners with partnerships across the region which allow them access to cabotage areas are perhaps faring better than their competitors. Malaysian Ministry of Transport. According to the minister, although the previous rules may have been acceptable in the past, the ports in East Malaysia are not better equipped.

You need to be logged in to make a comment. For Malaysian ships, licences may be granted either with or without conditions for a period of between 6 months to 2 years. Armed persons approach tug off Malaysia and open fire.

He said a number of local shipping companies were struggling and some ended up winding up their business due to unfair competition. Amin told local media. The master, owner or agent of any ship which contravenes these provisions will be guilty of an offence and upon conviction be liable to a fine.


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In the carriage of containerised transhipment cargo between certain ports in Peninsular Malaysia and East Malaysia was allowed. It was also closely connected to other issues clouding the industry, such as the lack of jobs for local players and reduction in vessels, leading to a shortage of training berths for cadets.

Stay updated with our FREE newsletter: Raising the bar for a more sustainable future Salvatore D’Amico. Chairman Datuk Abdul Hak Md Amin said that the liberalisation of the cabotage policy, which has been blamed for the higher cost of goods in Sabah and Sarawak, was aimed at bringing down the prices in both states which unfortunately has remained unchanged.

Insight The Malaysian Cabotage Policy. This has certainly been true in the offshore shipping industry.

Malaysia Shipowners’ Association: Cabotage policy should be reconsidered – SAFETY4SEA

Five strategic steps to offshore wind innovation in the US. Foreign vessels must offload their goods at designated major ports in West Malaysia as they are not allowed to call directly at East Malaysia’s ports.

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Critics of the policy, mainly from East Malaysia, have claimed that it has led the costs of goods in Sabah, Sarawak and Labuan to surge, due to the high freight rates and additional transhipment rates. Meanwhile, on the RM3 billion transportation development fund announced by the previous government in BudgetAbdul Hak said no details on the fund have been divulged to the maritime fraternity.

Section 11 of the MSO sets out the requirements of a Malaysian ship as a ship which is wholly owned by. Training and certification requirements for ships in Polar Waters. Major cyber attacks reported in maritime industry.


Malaysia Shipowners’ Association: Cabotage policy should be reconsidered

However, ships under 15 nett tonnes and licensed boats are excluded. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Challenges in the healthcare for crew members. The Malaysian cabotage policy includes ships used in the offshore industry within its exclusive economic zone.

Malaysia consists of three federal territories and thirteen states located in Poliyc Malaysia bordering Thailand and East Malaysia in the island of Borneo bordering Brunei and Indonesia. Most Read Cyber Security Highlights: Leave a reply Cancel reply Your email address will not be published. Abdul Hak said low minimum salary and weak regulations onboard the ship and vessel specification in the countries of origin also played a role in the flood of foreign ships in Malaysian waters, some of which were unsafe and not seaworthy.

Moreover, Malaysia is the world’s second-largest palm oil producer and we should be leveraging on that.

Challenging the way forward Elizabeth Mavropoulou. Ukraine to comply with IMO load lines convention. ILO is a premium online legal update service for major companies and law firms worldwide. Ten shipping books we read in The chief minister of Sarawak welcomed the exemption and is of the view that the cabotage rules are outdated.