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All users urged to help on straits' upkeep, security by Donald Urquhart
Singapore - With rising vessel traffic in the Malacca and Singapore Straits - over a third of which is energy-related - international users must begin contributing to improve navigational management and security, said the head of the Maritime Institute of Malaysia (Mima). The growing traffic - especially energy carriers - and increasing vessel size translates to a number of challenges, Mima director-general Cheah Kong Wai said at a seminar at the Institute of Southeast Asian Studies recently. These challenges include capacity strains, increased risk of accidents, a rising threat of pollution and increased cost of management and maintenance for the littoral states. Alongside this is the growing international expectation of the littoral states to improve traffic management, navigational safety and security, Mr Cheah said. But to date, the majority of the cost has been borne by the three littoral states of Malaysia, Singapore and Indonesia, despite the two straits being classified as international straits under the United Nations Law of the Sea (Unclos). Japan has been the only user state to consistently contribute, which it does via the Malacca Straits Council, he added. To date, the littoral states have spent nearly US$1 billion on security in the straits since Sept 11, 2001, Mr Cheah said, citing an Aegis Defence source. And for its part, Malaysia spent nearly US$50 million between 1990-2000 to upgrade navigational facilities, he added. As these straits are among the world's most strategic and economically vital shipping lanes carrying half of global oil supplies and one-third of world trade, their importance extends well beyond the three littoral states, Mr Cheah emphasised. Last year alone, 62,600 vessels larger than 300 gross tonnes travelled through the straits, of which 36 per cent were energy carriers, including crude carriers, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers. Container ships made up 32 per cent of the traffic, while general cargo ships and bulk carriers each comprised about 10 per cent. With growing global trade and a rising appetite for oil imports by developing countries, particularly China which is already the world's second-largest oil consumer, traffic in the straits is expected to grow steadily. In 2006, nearly 11 million barrels of oil per day were carried through the straits, a figure that is expected to nearly double to 20 million barrels per day by 2020, Mr Cheah said. China accounts for nearly seven million barrels a day of this figure, while Japan and Korea account for much of the remainder. LNG shipments are also expected to grow as this form of energy becomes more popular, particularly in China, Japan and Korea. Aside from improving navigational management capacity in order to handle the growing traffic, Mr Cheah urged a holistic approach in securing the energy transportation in the straits, which should include a study to identify vulnerabilities in the maritime leg of the energy supply chain. © The Business Times Singapore.
‘Irrational exuberance’ warning
As orders continue to pile up at shipyards, an analyst has warned owners to guard against what he calls “Wall Street-like irrational exuberance” in the shipping market, which could lead to overtonnaging. Nazery Khalid, research fellow at the Maritime Institute of Malaysia, issued the warning last week at the Asian Shipping & Work Boat 2007 conference in Singapore, organised by Baird Events. He especially expressed concern about the amount of new capacity entering the box trades, with 11,000teu ships breaking into the market soon. “Serious questions will have to be asked about whether the current shipbuilding frenzy will be sustainable,” he warned, also citing forecasts of a slowdown of global economic growth, which could slam the brakes on shipbuilding orders. Measures taken by China to cool its economy will start bearing fruit in 2008, Nazery predicted. Yards that have a sizeable backlog have also begun to conserve space and are choosy about orders, he told Fairplay. Near term, however, the analyst expects key sectors to remain bullish. “There should be optimism for bulk, tanker, gas and container carriers,” he declared. While ship prices have rocketed and yards are almost bursting at the seams, margins remain fine, Nazery noted. “In some cases, they just break even on ships scheduled for recent delivery,” he pointed out. Such facilities are trapped with contracts entered into when prices were lower, he explained, while a sharp rise in prices of steel plates and labour costs have also cut into margins. The offshore oil and gas sectors are booming, which has enabled smaller shipyards in Singapore and other southeast Asian countries to record significant gains by delivering ships such as offshore supply vessels. But those booms might also taper off, analysts warned. Larger yards, such as Keppel and SembCorp Marine in Singapore, are world leaders in oil rigs. Sabrina Marine director Richard Lim, who was chairing a session, warned that the booming OSV sector was also about to feel the effects of overordering (Fairplay Daily News, 6 February). “Rig owners are not exercising options and OSV owners are not scrapping. A correction will take place at some time,” Lim predicted. Meanwhile, yards continue to lap up orders. China, which is viewed as the next shipbuilding superpower, received newbuilding orders of 42M dwt in 2006 alone, an increase of 150% from 2005. Liu Deqian of the national shipbuilding industry association revealed that yards have shortened the building cycle by improving productivity. Still, he conceded that medium and small shipyards have some way to go before catching up on production facilities and quality of management and work force. While tankers and bulk carriers constitute the most commonly built ship types in China, the future will also include high-tech vessels, passenger ships exceeding 10,000dwt, ro-pax and ro-ro ships, passenger/container vessels, train ferries and LPG and LNG carriers with capacities exceeding 5,000m³, Liu noted. © Fairplay International Shipping Weekly.
Joint drill to fight piracy in Malacca strait
Coast guard officials from Japan, Malaysia and Thailand on Friday staged their first joint exercise to fight piracy in the Straits of Malacca, one of the world's busiest waterways and key to Asian trade. The three-hour drill in calm waters between Thailand's island of Phuket and Malaysia's Langkawi began with "pirates" hijacking a Japanese supertanker and kidnapping some of its crew. Malaysia's police commandos later stormed the tanker before arresting the "kidnappers". Japanese officials said the exercise, which involved 154 men, two helicopters, a Japanese coast guard ship and Thai and Malaysian patrol boats, underlined the need for better regional coordination to fight piracy and other cross-border crimes. "We hope to expand the membership to include other countries," said Captain Nobuharu Kagami, director of the piracy countermeasures office of Japan's Coast Guard. "The safety of the Malacca strait is very important to Japan." The anti-piracy office was launched this month to expand Japan's cooperation with other Asian coast guard agencies and raise Tokyo's regional profile. Piracy has dropped since Malaysia, Indonesia, Thailand and Singapore began joint air patrols as well as coordinated sea patrols in the strait, once known as the Spice Route, two years ago. But the threat remained. The London-based Lloyd's Market Association last August removed a war-risk rating for merchant ships transiting the strait following the improvement in security, especially on the Singapore and Malaysian side of the waterway. But ships calling at ports in north-east Sumatra in Indonesia would still be subject to war-risk charges, Lloyd's said. The Lloyd's Market Association's Joint War Committee had declared in 2005 that the strategic channel was vulnerable to "war, strikes, terrorism and related perils" after it was plagued by a wave of pirate attacks and crime. Since the September 11 2001 attacks in the United States, security experts have also warned that increasing lawlessness in the sea lane could spawn an attack by al-Qaeda or one of its affiliates. The Malacca strait, which snakes between Indonesia and Malaysia, links Asia with the Middle East and Europe. It carries about 40 per cent of the world's trade, including 80 per cent of the energy supplies of Japan and China. More than 60,000 merchant ships ply the waterway every year. Malaysia ruled out threats of maritime terrorism, pointing to increased policing. "We are confident the activities of maritime terrorism never exist in our waters," Abdul Manaf Othman, assistant commander for operations of the Malaysian Marine Police, told reporters on board the Japanese coast guard ship, JCG Yashima. "At present the littoral states are doing their best to make sure the strait is free from these maritime syndicate activities," he said. © The New Straits Times Press (Malaysia) Berhad.
Shrinking mangroves hurting prawn catch
Kuala Lumpur - Let our mangroves die and be prepared to kiss your favourite prawn dish goodbye. There is a direct correlation between declining prawn catches and shrinking mangrove areas, says a Universiti Malaya study. "Almost all prawns need mangroves to survive, from the small ones used for making belacan to the expensive big ones we enjoy at celebration dinners," said UM’s Prof Chong Ving Ching. The university’s Institute of Biological Sciences study linked a 35 per cent drop in offshore marine prawn catches on the Peninsula’s west coast to the gradual disappearance of nearly a quarter of its natural mangrove areas over the last three decades. Catches of tiny ‘Acetes’ shrimps, used in making shrimp paste, also dropped by half during that time frame. Chong said prawns needed mangrove ecosystems as nursery, feeding and breeding grounds. He added that 50 per cent of all coastal fish species depended on mangroves at some point of their lives, including high-priced ones like groupers, snappers, trevallies, threadfins, gray mullets and pomfrets. Chong said nearly half (45.6 per cent) of all fisheries in the west coast are dependent on mangroves, with revenues of RM881 million per year. This makes mangroves the biggest contributor by a leap compared with other coastal habitats like mudflats (18 per cent) and coral reefs (1.3 per cent) Maritime Institute Malaysia senior researcher Tan Kim Hooi said a mangrove’s most important role lay in its fisheries resources. In the Matang mangroves for example, he said the Matang Mangrove Forest Working Plan estimated revenue from fisheries industry to be RM250 million per year — 10 times that of timber. © 2006 NST Online.
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FTA with the US: To sign or not to sign? by Chandra Muzaffar
While there are some benefits that will accrue to Malaysia from a Free Trade Agreement (FTA) with the US, the disadvantages, it is apparent, will outweigh its advantages. In trading terms, the US, it is true, is Malaysia's biggest single country market. The total value of our exports to that country stood at RM110.56 billion in 2006. Since the FTA bestows a preferential trading position upon Malaysia, it is hoped that the volume of trade especially in manufactured goods will expand. But an agreement seems unlikely. Those critical questions which have impeded negotiations for more than eight months now, remain unanswered after five rounds of talks in Malaysia and the US. Will the FTA allow US agricultural products to overwhelm the Malaysian market, thus impacting adversely upon our farming sector? Even if our padi farmers are protected under the Agreement, what about other sub-sectors, such as poultry farming? We have the example of Mexico which lowered tariffs under the North American Free Trade Agreement (Nafta) and consequently opened the floodgates to subsidised corn from the US. It impoverished at least three million of Mexico's 10 million farmers. At a time when agriculture and agro-based industries are being given renewed emphasis in our development agenda, does it make sense to encourage heavily subsidised agricultural products from the US to undermine our efforts to build a resilient farming community? In similar vein, should we accede to the unimpeded entry of cheaper manufactured goods from the US when there is a possibility that it could lead to the closure of our own factories and the mass retrenchment of our workers? It is estimated that in Senegal a third of the workers in the manufacturing sector lost their jobs as a result of an FTA with the US that lowered drastically the West African nation's industrial tariffs. In Chile 8% of the industrial labour force was rendered redundant for the same reason. South Korean critics of their proposed FTA with the US argue that more than a hundred thousand workers could become unemployed if an accord was inked between the two states. Apart from a loss of jobs, FTAs have also resulted in the curtailment of a whole gamut of labour rights. Since the US Establishment is clearly biased towards the multinational and transnational corporations affiliated to it, there has been a tendency to protect their profits at the expense of the well-being of workers in the host country. Consequently, the worker's right to unionise and his access to other benefits such as health insurance are sometimes curbed and controlled. Going on the basis of the FTAs it has already concluded with a number of countries in South and Central America, it is quite conceivable that the US will impose similar conditions upon Malaysian workers. The US is also seeking equal access to lucrative government tenders and contracts. The Malaysian government is very much aware of how this will affect its affirmative action programmes designed to rectify the ethnic imbalance between the communities. Perhaps even more important, if the government yields to the US demand, it would unwittingly grant the US a strategic role in the Malaysian economy. The government should also be firm on the vital question of intellectual property rights (IPR). What the US FTA is asking for goes beyond the IPR obligations of World Trade Organization (WTO) member states. It would have an adverse impact upon cheaper generic medicines and make drugs for HIV/AIDS for instance much more expensive. However, more than any of the other negative consequences spelt out here, the FTA could prove to be a disaster for Malaysia's service industries. The US is seeking total, comprehensive access to this sector of the economy which ranges from banking and finance to telecommunications and audio-visual services. It wants all limitations on foreign ownership to be removed. This is a demand that Malaysia will not acquiesce with since certain industries such as telecommunications are of strategic significance to the nation. Neither should the Malaysian government agree to surrender its sovereign right to impose capital controls if and when it deems necessary. For the US FTA negotiators the unhindered entry and exit of equity capital is fundamental to financial liberalisation, the cornerstone of neo-liberal capitalism. Having been a victim of such capital flows - otherwise known as "hot money" - in the financial crisis of 1997-8, and having overcome that crisis partly through the effective use of capital controls, Malaysia is being judicious and prudent in insisting upon its right to regulate capital flows. A vigilant attitude on our part is imperative for yet another crucial reason. FTAs are not just about trade and economics. US FTAs in the Middle East and Latin America reveal that there are larger geopolitical goals at stake. An FTA with Malaysia, it is quite conceivable, will enable the US to increase its political leverage with an important Southeast Asian country which is part of China's immediate neighborhood. It is a littoral state which has sovereign rights over the Straits of Malacca, one of the world's seven most strategic sea routes - a route which is vital for China's economic ascendancy. Since Malaysia is determined to protect its sovereignty and independence, it must ensure that it is not drawn into a relationship with the US which will jeopardise its own long-term interests in a region that is destined to be a new centre of global power. For all these reasons, the Malaysian government should continue to put across its legitimate concerns to the US FTA negotiating team. If due consideration is not given to these concerns, we should put the negotiations with the US in abeyance. In any case, an objective cost-benefit analysis of an FTA with the US will show that Malaysians as a whole will have much more to lose. Which is why we must protect our interests - and our dignity. [Dr Chandra Muzaffar is president of the International Movement for a Just World (Just)]. © thesundaily.com.
Maersk to increase Malaysian port calls
SINGAPORE 27 February – Maersk Line is to increase port calls to Malaysia's Port Klang and Tanjung Pelepas when the extended Asia-Red Sea service is launched next month. A Port Klang spokesman confirmed to Fairplay that the terminal is ready to handle the anticipated increase in workload generated by additional calls at Northport from 6 March. Port Klang currently handles three port calls from Maersk Line: the new service will see the figure rising to four. The new service named FM5 will significantly increase transit time as it makes more port calls on its westbound and eastbound service. The Port of Tanjung Pelepas has added two extra berths and has been increasing its transhipment profile. Last year it handled 4.8Mteu. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Malaysia contains spill
Pontian – Malaysian marine department (southern region) boats are engaged in clearing an oil slick after last Saturday morning's collision involving a container ship and an oil tanker. The accident took place about four n-miles off Tanjung Piai near the port of Tanjung Pelepas in east Johor. “Luckily we managed to confine the affected area to the collision scene,” the department's director Hazman Hussein told Fairplay. Fifty tonnes of fuel oil spilled from Maersk Line's Dutch-registered container ship SA Helderberg, whose bow was damaged after colliding with the Singapore-registered tanker Ocean Sapphire. Local media had earlier reported sighting two oil patches near the scene of the accident. “We have managed to contain most of the spilled oil and we’re now trying to clear the oil streaks that have spread out in the sea,” Hazman said. Both vessels have been instructed to stay in the vicinity pending investigations. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Malaysia-India ties set for next level by Mahendra Ved
New Delhi - A visit to Malaysia by Indian Prime Minister Manmohan Singh is on the cards this year. This year happens to be the 50th anniversary of diplomatic ties between the two countries and also of Malaysian independence. Manmohan and Prime Minister Datuk Seri Abdullah Ahmad Badawi, who have by now come to know each other well, could well be meeting again — this time bilaterally, in Kuala Lumpur. This was disclosed at the end of Foreign Minister Datuk Seri Syed Hamid Albar’s visit here last week. He was here for the fourth meeting of the Malaysia-India Joint Commission. Bilateral relations came in for a complete review here at the commission meeting last week. Improved trade, co-operation in defence, space and information technology, an MoU for Indian workers in Malaysia, joint projects in third countries, more flights and tourists, better banking facilities — these were among the many subjects that figured, according to official sources. The meeting took place after a gap of almost five years. A firm decision was taken that the gap should not be repeated and that future meetings would be held annually or at least biennially. The next meeting would thus be in early 2009, if not next year. Syed Hamid led a high-level team of officials to the meeting. The Indian side was led by External Affairs Minister Pranab Kumar Mukherjee. A significant point Mukherjee made at the meeting was that Malaysia-India trade in 2006 stood at US$5.7 billion (RM20.6 billion), an increase of 21.59 per cent from the previous year. But it was heavily in Malaysia’s favour. One sure way of balancing it could be facilitating industrial projects. Thousands of Indians work in Malaysia and India has been pressing for an MoU for their movement. On the defence front, both have MiG-29s and Sukhois in their inventories that need flying, training and maintaining. This could open a fresh vista for co-operation. India is already engaged in the guarding of the Straits of Malacca and has offered its services for the surveillance of the sea lane. Prior to his visit here, Syed Hamid hinted at a joint military exercise, something Malaysia does not conduct with very many countries. A fuller discussion might pave the way for such an exercise, sources said. Besides official interactions, the tone of the visit was set by Syed Hamid in the course of an interview he gave to The Hindu: "Now, (India) is an emerging economy as well as a superpower. I do not see any reason why Malaysia and India should be seen not to be close." He pointed out that India was "strategically located to provide the necessary umbrella as a big country. We can benefit from India’s economic growth. On many issues, say (in the) World Trade Organisation, we move with India". The Indian leadership and Syed Hamid have known each other well. It was Syed Hamid who, in 2003 at the 13th Non-Aligned Movement Summit in Kuala Lumpur, put a graceful end to a war of words between Indian Prime Minister Atal Bihari Vajpayee and Pakistan’s President Pervez Musharraf. Syed Hamid has met and talked to Manmohan as well. As Syed Hamid told The Hindu: "India is now more settled politically to be a player that makes a difference. Why do people feel excited about today’s relationship between Malaysia and India? "Because, (Prime Ministers) Manmohan (Singh) and Abdullah get along well. There seems to be good chemistry between them. I have these words to describe Malaysia-India relations: Very close and friendly.". © 2006 NST Online.
Malaysian warships trespass RI waters in Ambalat
Surabaya - Malaysian warships and airplanes have once again encroached several times upon the Indonesian waters and air territories over the Ambalat areas since last weekend, a Navy spokesman said Tuesday. Navy's Eastern Fleet spokesman Lt. Col. Toni Syaiful said that the incident where the Malaysian warships and airplanes violated the Indonesian territories had occurred repeatedly since Feb. 24,2007. "After a spat which brewed in 2004 on an overlapping claim over the Ambalat ownership in the Sulawesi Sea between Indonesia and Malaysia, Malaysian warships and warplanes are once againviolating Indonesia's territories," the Navy spokesman said. He said the first incident occurred when Malaysian patrol ship 'KD Budiman-3909' trespassed one miles into the Indonesian waters at 10:00 a.m local time on Feb. 24. "The second violation occurred in the afternoon on the same day. Malaysia's warship KD Sri Perlis-47 crossed the water border two miles into Indonesia's waters," he added. After they were intercepted by Indonesian warship KRI Weling, the two Malaysian warships were successfully driven away, he said. 27KD Sri Perlis-47 did the same thing the next day onFeb.25 at 9:00 a.m. It crossed the waters border about 3,000 yard into the Indonesian territories. "The Malaysian ship was once again driven away by Indonesia's KRI Untung Suropati-872,"Col. Syaiful said. On the same day on Feb. 25, Malaysian maritime patrol plane, Beech Craft B 200 T Superking, also breached the Indonesian air corridor over the Ambalat at 11:00 a.m, he said. He said that four Indonesian warships were deployed to carry out security patrols in the water territories. They are KRI Ki Hadjar Dewantara, KRI Keris, KRI Untung Suropati and KRI Weling and are now involved in the "Balat Sakti" operations. "Violations by Malaysian warships and warplanes over Indonesia's territories happened not only this time around. In 2006, the combat task force of the Navy's eastern fleet recorded territorial violations by Malaysian ships," he added. © The Jakarta Post.
Maritime sector welcomes search for new director-general
The local maritime industry has welcomed the recent initiatives by the Government to seek a new director-general for the Maritime Institute of Malaysia (Mima) under the Ministry of Transport. It is understood that seven candidates have applied for the position which was advertised last month. Shipping and port communities deeply disappointed with the activities and the progress of the 15-year old institute have often complained that the performance of the institute had not met the expectations of the industry "notably in its failure to produce a blueprint or a policy framework on the development of the Malaysian maritime industry". Industry sources feel there is need to carefully evaluate a suitable sufficiently qualified candidate with research background for the job to take Mima to a higher level of research and policy-making. Source said with an annual budget of about RM4 million, Mima had failed in its task to produce what was fundamentally set up to do for the maritime industry, namely producing a blueprint on the national shipping development. The institute, set up by the Government to serve as a national focal point for research in the maritime sector, lacked the focus and the expertise to look into critical maritime issues and policy concerns. - PortsWorld. © The New Straits Times Press (Malaysia) Berhad.
RAM lifts Rating Watch on Penang Port’s
RAM has lifted the Rating Watch (with a positive outlook) on the A2/P1 ratings of Penang Port Sdn Bhd’s (PPSB) RM100 million Islamic Commercial Paper/Medium-Term Notes Programme (CP/MTN). At the same time, the long-term rating has been upgraded from A2 to AA3, with a stable outlook; the short-term rating has been reaffirmed at P1. RAM had placed the Rating Watch on the A2/P1 ratings in August 2006, to reflect a potentially stronger financial profile from the impending increase in Penang Port’s tariffs then. The rating upgrade is premised on PPSB’s established track record as an effective port operator and its stronger financial outlook with the upcoming implementation of an average 30% hike in port tariffs, effective 1 March 2007. From an operational standpoint, the Company has been charting relatively consistent growth over the last 15 years, with cargo throughput growing at a compounded rate of 5.3% per annum. PPSB should also be commended for the resilience it has demonstrated in managing its increasingly expensive operating costs amid stagnant port tariffs for the last 26 years. As a player in a highly capital-intensive industry, PPSB has prudently managed its port-expansion plans, keeping gearing ratios to a manageable 0.5 - 0.8 times in spite of the additional debts to partially fund the expansion of its container-handling facilities. On the financial front, the tariff increase, coupled with anticipated organic growth and ongoing cost-reduction initiatives, should allow PPSB to generate more superior margins on operating profit before depreciation, interest and tax of 37% - 40% from the current mid-20%. Stagnant tariffs and potential margin squeezes had previously been a concern, especially given escalating fuel prices. Under RAM’s stressed-case scenario, the impending tariff hike is anticipated to boost PPSB’s annual operating cashflow to RM110 million - RM160 million from FYE 31 December 2008 (FY Dec 2008) onwards, when the full-year effects of the rate increase kick in. Its operating cashflow debt-coverage ratios, on the other hand, are projected to range around 0.19 - 0.25 times until the final maturity of the CP/MTN in FY Dec 2013; this would adequately support the ratings given the relative stability of Penang Port’s operations. Elsewhere, Penang Port’s resilience is underscored by its strategic role as a feedering hub for hinterland cargo from the northern states of Peninsular Malaysia as well as southern Thailand. Prospects for longer-term growth are also encouraging; Penang Port is set to benefit as the principal maritime gateway for the designated automotive-manufacturing hubs of Gurun (Kedah) and Bertam (Seberang Prai). PPSB’s credit strength, however, is moderated by the inherently capital-intensive nature of the port business, especially when external financing is often required to help fund large capital expenditure (capex) to cater to rising cargo volumes and to maintain competitiveness. However, RAM acknowledges that the timing and necessity for such capex are somewhat discretionary, typically corresponding to the anticipated growth at the time. To this end, PPSB is anticipated to gear up further to fund its future port-expansion activities, such as the remaining works for the North Butterworth Container Terminal (NBCT) Phase 2B and the proposed NBCT Phase 3 project. All in all, PPSB is expected to assume up to RM510 million of additional borrowings throughout the remaining tenure of the CP/MTN, with its debt burden peaking at approximately RM665 million and its gearing ratios reaching a maximum of 1.60 times under RAM’s stressed-case scenario. However, RAM notes that the overall debt level could be lower if PPSB’s proposed listing takes off and its proceeds are utilised to partially fund the expansion programme. Meanwhile, Penang Port remains vulnerable to economic cycles despite its diversified base of indigenous cargo from the manufacturing and resource- as well as non-resource-based export industries. © 2007 The Edge Daily.
RMN evaluates its readiness following biggest-ever naval exercise by Roy Goh
Kota Kinabalu - They tracked an area of more than 100,000 square kilometres over the South China Sea and the Sulu Sea in the biggest-ever naval exercise in East Malaysia last week. Some 500 Royal Malaysian Navy personnel in eight battle ships took part in the successful exercise, which stretched close to 1,400km from the navy base in Sepangar up to the waters off Semporna, Lahad Datu and Sandakan from Feb 12 to 16. Region Two (East Malaysia) Navy Commander Rear Admiral Datuk Ahmad Kamarulzaman Badaruddin said the Operational Sea Training Exercise East or OSTEX East 1/2007 said the exercise helped the navy test its command and control operations and evaluate their readiness. "We also got to test the competencies of the ships and their crew," he said, adding that an initial analysis has given them a good feel of the various achievements. "And we have identified areas where improvements can and need to be made." The exercise has expanded over the years from simple routines to more complex and challenging tasks. "The spectrum this year for instance included terrorism threats and humanitarian and disaster relief operations. The Royal Malaysian Navy continues to evolve, not just in its capability but also in its role in maritime security." The eight vessels involved were KD Pahang, KD Kedah, KD Baung, KD Pari, KD Sri Gaya, KD Sri Tiga and two CB 90s. The navy special forces, or PASKAL, were also involved in the exercise. © 2006 NST Online.
Shipping welcomes Singapore budget
SINGAPORE 16 February – The Singapore government has granted further tax concessions to the shipping industry in the 2007 budget presented to Parliament yesterday. The Approved Shipping Logistics (ASL) Enterprise Scheme will be enhanced by extending the incentive period from five to 10 years. Shipping income in Singapore is already tax exempt. Container leasing companies have also been granted exemption from the goods and services tax (GST) under a “GST zero-rating” for servicing, sale and leasing of containers in Singapore. The budget presented by Second Finance Minister Tharman Shanmugaratnam also cuts corporate tax to 18% from the existing 20%. Welcoming the measure, the Singapore Shipping Association has noted that this should strengthen Singapore’s status as a competitive commercial centre. But the association, which has 238 members representing diverse maritime sectors, also pointed out that the increase of Employer’s CPF contribution from 13% to 14.5% will have an “adverse impact” on cost of doing shipping business in Singapore. Also fresh demands from SSA such as granting subsidies to cover costs of complying with environmental friendly modifications to ships have not been met. ©Lloyd's Register - Fairplay Limited 1999 - 2006.
Stronger defence pact for Malaysia, India - Syed Hamid by P. Vijian
New Delhi - Traditional trading partners Malaysia and India are now preparing to enter a new defence pact, with both countries willing to conduct military exercises and India ready to train Malaysian Sukhoi fighter pilots and Scorpene submarine personnel. Malaysian Foreign Minister Datuk Seri Syed Hamid Albar described India as "an old friend" and a vital link in the geo-political equation that could share its defence expertise with Malaysia, as both countries had many commonalities. "India and Malaysia share the same military doctrine and philosophy as former British colonies and members of the Commonwealth. "When we first bought the MIG-29 from the Russians, our first focus was on India to get the necessary training, repair, maintenance and spare parts. "It (India) is so near and we speak the same language. Somehow or other, due to technicalities and bureaucracy, it did not work out," he told Bernama after the conclusion of the fourth Malaysia-India Joint Commission Meeting (JCM) in Delhi last Friday. But the tide appears to have changed this time around after the JCM, held after almost a five-year break, where defence captured the interest of both countries which consider each other a strategic partner. During his visit, Syed Hamid had lengthy discussions with Indian Prime Minister Manmohan Singh and External Affairs Minister Pranab Mukherjee on future cooperation between both nations -- from trade to defence. "We also agreed that there should be greater defence cooperation (between both countries). We agreed that there should be more exchange of military personnel, joint military exercises, training of our pilots. "They would also like to offer training for our submarine personnel because they too are buying the same submarines from the French. The Defence Ministry of India has agreed and the External Affairs Minister has said there should not be any problem," added Syed Hamid. Malaysia has procured two diesel-fuelled submarines of the Scorpene class, currently being assembled in Cherbourg, France, and Cartagena, Spain, and expected to be delivered by 2008 and 2009. Likewise, India, which has one of the largest blue water navy fleets in the world, is in the process of acquiring six similar class submarines to beef up its maritime defence capabilities. The Scorpene class submarines are said to be the advanced among the non-nuclear models. © 2007 BERNAMA.
Syria and Malaysia to boost cooperation in transportation by Thawra-Sawsan
Damascus - Deputy Minister of Transport Imad Abd al Hi discussed on Tuesday with Tan Sri Halim Mohammad Chief Executive Officer of Matrade Corporation , an affiliate of Malaysian Ministry of Trade and Industry boosting bilateral cooperation between the two countries in all different maritime transportation. Both sides also discussed the possibility of establishing a joint marine company and holding training courses for workers in addition to benefiting from the Malaysian experts in transportation field as well as study of running marine airlines from Eastern Europe through the Syrian ports. Mr. Halim Mohammad conferred with Director of the Syrian Arab Airlines Nash'at Nomir a number of issues concerning prospects of future cooperation in training technicians and rehabilitating workers. © 2007 Syrian Arab News Agency (SANA).
UN Convention on the Law of the Sea must be maintained: Tommy Koh by Satish Cheney
There is no place for complacency when it comes to the legal order of our oceans and seas, said Ambassador-At-large Professor Tommy Koh. Speaking at the International Congress of Maritime Arbitrators, Professor Koh noted there were still some countries acting against the UN Convention on the Law of the Sea. He highlighted recent actions by Australia imposing a system of compulsory pilotage in the Torres Strait, which he said went against the UN Convention. Turning to the piracy situation in the Malacca and Singapore Straits, Professor Koh said it was under control, adding that Indonesia, Malaysia and Singapore have agreed to establish a Cooperative Mechanism. © 2007 MCN International Pte Ltd.
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