Australia and the Philippines expand cooperation in sea surveillance by Michael Richardson
Australia has set a high priority on expanding trade and investment ties with China, potentially the world's biggest market for Australian natural resources and farm products. Australia's drive to sell more to China took a big step forward this week when Prime Minister John Howard flew from talks in Batam on Monday (26 June) with Indonesia's President Susilo Bambang Yudhoyono for a meeting in Shenzhen with Chinese Premier Wen Jiabao. They attended a ceremony to mark the opening of a liquefied natural gas terminal in the industrial hub of southern China that will receive LNG from Australia worth about A$25 billion over the next 25 years. Given the value of this new energy supply route to China and its vulnerability to possible terrorist attack, Australia has been quietly helping the Philippines improve its sea surveillance and its ability to respond to threats against ships and seaborne trade. Military, police and intelligence officials from the two countries first met in Manila a year ago to exchange information, consider how law enforcement agencies can best coordinate their responses, and develop practical ways to strengthen security in the waters around the Philippines -- which, along with Indonesia, is one of the world's largest island-nations and straddles vital sealanes used by Australia to trade with Asia and the United States. Since then, Australia has extended its increasingly close counter-terrorism cooperation on land with Indonesia and, more recently, the Philippines to encompass maritime security with Manila. A number of recent developments have evidently prompted Canberra to pay much closer attention to the possibility of an attack launched by al-Qaeda-linked terrorists in the southern Philippines against ships carrying billions of dollars of Australian exports to Asia and the U.S. -- particularly giant tankers laden with LNG going to Japan, South Korea, Taiwan and soon to the west coast of North America as well as China. Because it is an island-continent separated by the sea from its main markets, Australia is, by some counts, the fifth biggest user of shipping in the world. Almost all Australia's overseas trade by bulk and some 72 percent by value are carried in ships. A large majority of exports of Australian goods to six of its top 10 markets -- Japan, China, the U.S., South Korea, Taiwan and Hong Kong -- are carried north in tankers, bulk carriers and other vessels through two deepwater passages in Indonesia: The Lombok Strait between the islands of Bali and Lombok, and the Makassar Strait between the islands of Borneo and Sulawesi. Then, depending on their destination, size and weight, the ships either branch right through the Celebes Sea south of Mindanao, the main island in the southern Philippines, out into the Philippine Sea and the Pacific Ocean; or they branch left, skirting the Sulu archipelago and Palawan Island in the Philippines to reach the South China Sea. The Philippine government sought assistance from the Australian Federal Police, the AFP, after a Philippine sea-going ferry carrying almost 900 passengers caught fire and sank shortly after leaving Manila for the south in February 2004. A total of 116 people were killed or are still missing, presumed dead. At first, Philippine authorities thought the ferry went down because of an accidental fire on board that gutted several decks. But Australian forensic investigators and explosive specialists later found that the fire was caused by a bomb in the engine room. Six members of the Abu Sayyaf and an affiliated organization known as Rajah Sulaiman were charged with the bombing. The Abu Sayyaf group of Muslim extremists has several hundred members based in the Sulu Archipelago and other parts of the southern Philippines. It has been involved in notorious cases of kidnapping of both locals and foreigners, including crew members of passing ships, and holding them for ransom. The Rajah Sulaiman group is made up of zealots who have converted to Islam from among the Philippines' Christian majority population. The AFP has been working with Philippine security agencies to investigate links between the Abu Sayyaf, other militant Islamic groups that have been fighting for independence or autonomy for the Muslim minority in the southern Philippines, and the Southeast Asian regional terrorist network, Jamaah Islamiyah (JI), which is based in neighboring Indonesia. The JI was responsible for the Bali bombings in October 2002, in which 88 Australians and three New Zealanders died, and the vehicle bombing of the Australian embassy in Jakarta in September 2004. In March 2005, the Philippine military said it was told by a recently captured guerrilla that the JI and the Abu Sayyaf were cooperating in many areas, among them training operatives in scuba diving on Palawan Island in the southern Philippines so that they could attack ships. Another development that may well have prompted closer maritime security ties between Australia and the Philippines was the publication in December 2004 of a year-long study for the U.S. government by experts of the Sandia National Laboratory, a leading research facility dealing with nuclear arms and other weapons of mass destruction. It provides the most detailed analysis to date of the potential impact on public safety of a terrorist attack on a laden LNG tanker. But the conclusions that would have most concerned Canberra were those in the Sandia report that said terrorists, using readily available weapons and technology, could blast a large hole through the double steel hull to penetrate one of the insulated tanks, causing a major LNG spill and, very likely, an intense fire. The report evaluates a range of scenarios that would result in the release of millions of liters of LNG from a tanker. They include external attacks using triggered explosions or rocket-propelled grenades or missiles, some of which are already in the hands of Philippine extremists. They also include explosive-laden boats like those used by al-Qaeda to blast holes in the sides of the American destroyer USS Cole in October 2000 and the French-registered oil tanker Limburg two years later. Both those attacks took place in Yemen and caused serious damage. Concern about the vulnerability of LNG tankers to a terrorist attack was underscored again last week (20 June). Yea Byeon-Deok, professor and LNG initiative coordinator of the International Association of Maritime Universities told an energy conference in Darwin, northern Australia, that to meet future demand for natural gas, over 140 new LNG tankers had been ordered ranging in size from 100,000 tonnes to over 200,000 tonnes. "All we can say is that a 100,000-tonne tanker has four times the energy potential of the atomic bomb used to hit Hiroshima," he said. "Many sub-standard vessels have begun to appear as demand for LNG increases, while there is a chronic shortage of experienced crew." Australia's LNG exports to Asia are already worth more than A$3 billion a year. With production expanding, the first shipments of 3.3 million metric tons of LNG per year to China already underway, and demand from Asia and California likely to grow fast over the next decade, Australia seems set to enjoy an LNG bonanza -- provided it continues to be a reliable supplier with an unblemished record of safety and security.
The writer, a visiting senior research fellow at the Institute of South East Asian Studies in Singapore, is the author of A Time Bomb for Global Trade: Maritime-related Terrorism in an Age of Weapons of Mass Destruction published by ISEAS. © The Jakarta Post.

Another record profit year for Petronas by Jagdev Singh Sidhu and Goh Ee Koon
Kuala Lumpur - Petroliam Nasional Bhd (Petronas) reported yet another year of record profit as crude oil prices and sales of liquefied natural gas (LNG) continued to rise. The national oil company recorded a 22.6% increase in net profit at the group level to RM43.6bil for its financial year ended March 31, 2006 as revenue rose 21.8% to RM166.9bil but president and CEO Tan Sri Hassan Marican said spiralling cost, the shortage of human capital and ongoing gas subsidies were concerns. “Cost to develop and explore has gone up. It has become another challenge, coupled with the shortage of human resources around the world,'' he told the media at the release of Petronas' full-year financial results. Notwithstanding such problems, Petronas enjoyed a bumper financial year as the weighted average price of crude oil sold from all the territories it operated in was markedly higher than in the previous financial year. Petroleum products, such as refined products, was the biggest contributor to Petronas' revenue last year, bringing in RM55.6bil of the overall revenue of RM166.9bil. This was followed by crude oil, LNG and petrochemical products. “We are able to achieve these results due to the high reliability of our plants,'' Hassan said. Pre-tax profit for the year rose 21% to RM70.2bil. Petronas said 58.4% of group revenue, which had been growing at a compounded annual rate of 26.3% over the past five years, came from manufacturing activities. Its domestic manufacturing revenue constituted 27.8% of the manufacturing sector's contribution to Gross Domestic Product. Hassan said that percentage would have been much higher if LNG activity was included under manufacturing instead of mining. Exports accounted for RM73.6bil of total revenue. Total shareholders' funds and liabilities jumped to RM269.2bil from RM239.1bil and the group's gearing ratio dropped to 0.16 times from 0.22 times a year earlier. Total debt was RM43.9bil with the majority of it in US dollars and payable over the next 10 years. Petronas has RM93.1bil in cash and investments compared with RM75.2bil a year earlier. While higher oil prices was the main driver of revenue and profit growth, Hassan said dividends from subsidiary companies amounted to RM15.8bil, which was a 216% increase from the previous financial year. Total investment in such subsidiaries totalled RM64.5bil. Budgeted capex for its 2007 financial year was RM27.7bil, of which RM19.2bil was for the domestic market. Of the total amount, 48% was for exploration and production and 26.1% was for logistics and maritime, or for subsidiary MISC Bhd. Total capex in 2006 was RM18.5bil and the majority of that was contributed by production sharing contract partners in Malaysia. Comparing financial ratios of Petronas with other oil giants, Hassan said its pre-tax profit margin and return on average capital employed were much better than what the other majors were achieving. He added that the return on total assets at 26% was lower than some of the majors but if property assets were taken out, the ROA would be about 35%. Petronas also said that as at Jan 1 2006, total reserves in Malaysia amounted to 19.91 billion barrels of oil equivalent, a 2.8% increase from 2005. The bulk of that is in natural gas, which has a lifespan of 34 years based on current production levels. The reserve lifespan of oil is 20 years based on the current rate of production. Total average production in the country is 1.656 million barrels of oil equivalent a day and for Petronas, total average production is 1.164 million barrels of oil equivalent a day. Hassan said total production by Petronas fell because of maintenance of major facilities and PSC cost recovery. “There are 270 platforms offshore in Malaysia, of which 150 are above 20 years old,'' he said, adding that oil pipelines were also aging and would result in shutdowns for refurbishment. “There will be times where we have to bring down production and conduct major refurbishments.'' © 1995-2005 Star Publications (Malaysia) Bhd.

Asia unites against piracy
The "Regional Cooperation Agreement on Combating Piracy and Armed Robbery Against Ships in Asia" (ReCAAP), will go into force on September 4, 2006. The nations that have signed on for ReCAAP ( Cambodia, Japan, Laos, Singapore, Thailand, the Philippines, Myanmar, South Korea, Vietnam, India, and Sri Lanka), are about to be joined by Brunei, which has signed it and in the process of ratification. ReCAAP is the first regional government-to-government agreement to combat piracy and armed robbery against ships in Asia. Among the initial steps to be taken is setting up a permanent multi-nationally-staffed "Information Sharing Centre" (ISC), in Singapore, which will become operative on September 4th. ReCAAP supplements earlier agreements among Singapore, Malaysia, and Indonesia to combat piracy in the Straits of Malacca (SOM). Although the U.S. the Pacific Fleet had a role in promoting both the SOM and ReCAAP projects, as examples of "Regional Maritime Security" consortia, there will be no direct American role in the program. But given the constant and widespread presence of the U.S. Navy in the region, there will always be informal American participation in the anti-piracy program. © 1998 - 2006 StrategyWorld.com.

Balance between conservation and exploitation
Some say it is an arcane matter. However, the "nature conservancy versus people's welfare" issue remains relevant to others. During a discussion about the management of the Derawan islands recently, a participant posed a question. "Would you sacrifice the welfare of poor fishermen for the sake of marine conservancy?" Berau Regent Makmur was asked. The regency declared the marine areas of Berau, totaling 1.27 million hectares, and equal to about four times the marine territory of Norway, a marine conservation area in 2005. The administration and a number of non-governmental organizations (NGOs) have been working for months for the establishment of marine management to enforce the status, as they expect to start implementing it later this year. The question above, therefore, is relevant due to possible restrictions in some parts of the marine region on fishing. Most fishermen in the Derawan islands, just like their colleagues across the archipelagic country, live a relatively impoverished existence. They have been complaining about declining fish catches, most likely due to the damaged environment of the marine region. Fishing is a more costly activity nowadays, particularly since an increase in fuel prices last year. "If we have to go further out to sea we need to spend more on fuel. So much the better if we catch a lot of fish as that will cover our expenses. Otherwise, we get nothing," said a fisherman, who lives in the Derawan islands. Matheus H. Halim, who leads the WWF-TNC marine joint program, explained that the imposition of the marine conservancy region would boost the supply of fish. "At the end, the fishermen are hoping to net more fish," he said. The Berau administration and non-governmental organizations are considering a division of the total 1.27 million hectares into several parts. Some would serve as restricted areas, aiming at protecting the fish to breed and giving time for the eggs and the fish to grow. Others would be open to fishing. "Sea currents would also bring the roe from the protected areas into the open areas, allowing them to develop there. Fishermen would get more benefit because they could catch greater quantities of larger fish," Halim said. The NGOs have also attempted to provide some 24,000 fishermen, their families and other residents of the islands wider alternatives to fishing since the Berau administration plans to establish ecotourism in the Derawan islands. Berau administration hopes to boost its regional revenue by US$2 million from ecotourism and fishing after the imposition of marine protection regulations. The program has also been assisting some people living in the islands with craft skills. An artist from Bali was invited to train them in making souvenirs such as turtle figurines as an alternative to using turtle shells. Bestari (an acronym meaning "preserving Berau"), a local NGO, has also been assisting locals in preparing for the possible establishment of ecotourism in the islands. Bestari director Juhriansyah explained that his NGO has been supporting locals for two years to start their own tourism businesses. "We've starting with preparing a village plan. We are also supporting them to build lodges or small lunchrooms for budget divers," he said. The Derawan islands are well-known with international divers for their marvelous marine and coral reefs. A number of diving lodges and resorts have been established there, all of which are owned by Malaysian companies. However, it takes time to complete the training of locals, most of whom are not well informed due to the remoteness of where they live. It is very difficult to obtain newspapers there, or to receive radio and TV programs. Juhriansyah said that their initiative had yet to succeed. "It will likely take more than a year to prepare them," he said, based on his NGO's experience thus far. Obviously, the Berau administration and the NGOs must take this into account. Deploying a security approach to guard the preserved marine areas without raising the awareness of fishermen would be meaningless: The deterrent effect would not last long. Berau's maritime area is vast. It takes a lot of resources to guard it. The Berau administration has secured approval from the Forestry Ministry and the maritime department to back up the security measures. However, both are known for their limited ability and resources to protect the huge maritime area of Indonesia. Located on the border of Malaysia and the Philippines, the maritime area in Berau is just one of many in the country. In addition, traditional fishermen in the Derawan islands are not the only possible "threat" to marine conservation as they sometimes deploy destructive fishing techniques like using explosives. However, that does not happen often and the number of fishermen deploying it continues to decline. Foreign fishermen, with modern equipment and vessels, are often caught in the act of poaching fish and protected turtles by the Navy. It is sensible to involve local fishermen in protecting their own sea. The sense of belonging among them would serve as the best protection for endangered marine life. As Regent Makmur puts it: "I want the locals to lead the initiative. The administration and the NGOs are involved in a support capacity only. I believe they can boost their welfare through appropriate conservation measures." © The Jakarta Post.

China ratifies convention on marine pollution
China's top legislature ratified an international convention on Thursday to step up the protection of the marine environment in China by banning the dumping of waste in the ocean. The National People's Congress (NPC) Standing Committee's ratification of the 1996 Protocol on the Convention of Marine Pollution by Dumping of Waste and Other Matter concurs with the building of an environmentally friendly society proposed by the country's 11th Five-Year Program (2006-2010), said Sun Zhihui, director of China's State Oceanic Administration (SOA). It also indicates China's resolution to manage the dumping of waste into the ocean and presents an image of responsibility to the international community regarding marine environment protection, he said. The objective of the protocol is to protect and preserve the marine environment from all sources of pollution. China will further amend its marine dumping regulations including the Regulations of the People's Republic of China on Control over Dumping of Waste in the Ocean as soon as the protocol takes effect. China will also improve its technical standards of marine dumping management, Sun said. Dumping waste into the ocean has attracted global concern in the latter half of the 20th century. In 1972, the Convention on the Prevention of Marine Pollution by Dumping of Waste and Other Matter, generally known as the London Convention, was passed and came into force in 1975. The 1996 Protocol is intended to replace the 1972 Convention as it is much more restrictive. It has introduced what is known as the "precautionary approach", which requires "appropriate preventative measures to be taken when there is reason to believe that waste or other matter introduced into the marine environment are likely to cause harm even when there is no conclusive evidence that they will." It has also listed seven wastes or other matter which are not considered dumping, including dredged material, sewage sludge, fish waste, vessels and platforms, inert, organic material of natural origin and bulky items primarily comprising iron, steel, concrete and similarly unharmful materials. China has a large volume of dredged materials, and the need for dumping vessels and platforms has been increasing in recent years, said Chen Yue, deputy director of the international cooperation department under the SOA. For the remaining five wastes or other matter, China disposes of them through comprehensive utilization and recycling on the land, Chen said. Statistics from the administration shows that by 2005, China had 98 dumping sites and the major dumping wastes were dredged materials. The SOA carried out surveys on 24 dumping sites and their surroundings last year. The survey shows that the benthic environment of most dumping sites are quite stable and the benthic diversity is not significantly affected by the dumping, while some dumping sites show unusual benthic environment and the benthic diversity is obviously decreasing. © Xinhua.

IMB records global decline in ship piracy
International Maritime Bureau (IMB), a group that monitors international shipping activities has said piracy on the high seas decreased worldwide for the first three months of 2006, compared with the year before. There were 79 attacks reported from January to March, compared to 103 attacks last year, which IMB said is the lowest first quarter record in three years. The London-based IMB said that sea pirate in Asia is also decreasing, but that it is too soon to say whether Asia’s shipping lines are safer. However, the bureau warned against drawing positive conclusions about the report too soon. “The three months alone can’t really say very much”, he said. The same thing happened in the year 2000 and the attack shut up quite high towards the end? Southeast Asia has the world’s most pirate infested waters, partly due to geography and partly due to poverty. Indonesia reported 21 attacks in the first quarter of 2004, seven fewer than last year. The archipelago’s thousands of water ways make it a hospitable nest for pirates who rob commercial ships. IMB said countries like Indonesia, Malaysia and India have made good strides in anti-piracy enforcement. But the United States and other countries still fear that Southeast Asia could be prime ground for terrorist attack. Several countries have expressed willingness to talk about deploying us marine patrols to help with anti-terrorist operations. Mr Abhyankar of the IMB said the greatest security is achieved when shipping companies and their crews raise their level of vigilance. According to him, the activities of pirates dropped after the September 2001 terrorist attacks on the United States. “After the 9/11 attacks in New York, there were no piracy incident in the world for next 12 days, which was unheard of”, said Layant Abhyankar. “The only reason one can put it down to is enhanced security. He also said shipping companies should make a number of investments to guide against pirate attacks. “There is a sort of electric fence they can erect around a ship, which is not too expensive and it will more or less guarantee immunity from attacks”, he said. “Then you have tracking devices, whereby if a ship does not get hijacked, she can be found in very short time indeed”. Then this July, 108 countries are scheduled to begin enforcing an agreement called the International Ship and Port Security code, sponsored by United Nations International Maritime Organisation. The code standardises security procedures among governments, port authorities and shipping companies. © The Tide Online (Rivers State Newspaper Corporation, Nigeria).

Indonesia urged to bolster Malacca Strait security: IMB
Kuala Lumpur - Indonesia should boost security in the Malacca Strait, an international maritime watchdog said Wednesday after pirates attacked a Japanese carrier and two UN ships off the coast of Aceh. "We urge Indonesian authorities to take action to contain piracy in the strait," the head of the International Maritime Bureau's (IMB) Piracy Reporting Centre, Noel Choong, told AFP. Choong said piracy attacks had declined in the Malacca Strait dividing Malaysia and Singapore after Indonesia launched agressive patrols codenamed Operation Gurita. In the latest incident Tuesday, pirates attacked the Japanese operated bulk carrier MV Island Oasis in waters off tsunami-hit Aceh. The 20 Filipino crew prevented the pirates, believed to be Indonesian, from boarding the ship. In the same area off the coast of Aceh in the north of the strait, pirates attacked two UN-chartered ships hours apart on Sunday. In the first attack, some 12 pirates armed with AK47 rifles, hand grenades and pistols boarded the ship. Both ships were ferrying construction materials to Indonesia for the UN's World Food Program when they were attacked under cover of darkness. Choong said seafarers must remain alert when plying the strait which is one of the world's most important waterways. Maritime officials have said that the high cost of fuel is one key element restricting Indonesia's ability to conduct frequent maritime patrols along its vast coastline. Leading insurer Lloyd's has placed the Malacca Strait on its list of dangerous waterways. © 2006 LKBN ANTARA.

Japanese carrier's crew foils pirate attack in Malacca straits
Kuala Lumpur - A Japanese bulk carrier on Tuesday foiled a pirate attack in the Strait of Malacca off Indonesia's coast, days after two U.N.-chartered vessels were raided by pirates in the same area, a maritime watchdog said. The attacks raised concern about a resurgence of piracy in the strait, one of the world's busiest shipping lanes and a key link between Asia and Europe. The waterway had become largely peaceful last year following increased patrols by Indonesia's navy. "We are extremely concerned with this three latest attacks in the same area," said Noel Choong of the London-based International Maritime Bureau. "We have informed the Indonesian authorities, and we hope they will take action to contain the problem" said Choong, the head of the IMB's piracy center in Kuala Lumpur. In the latest attack, pirates traveling on a blue-hulled, unlit speedboat off the coast of Indonesia's Aceh province followed the large Japanese ship, with a gross tonnage of 26,989 tons, and attempted to board it from the back, Choong said. But an alert duty officer raised an alarm. The crew turned on floodlights and sprayed water from fire hoses, preventin the pirates from boarding, Choong said. "They stopped the attack by raising the alarm," he said, adding that the pirates, suspected to be armed with guns, chased the ship for five minutes before giving up. On Sunday night, pirates successfully boarded two U.N. chartered ships carrying construction material for the reconstruction of the tsunami-hit Aceh province. Both ships, flying Indonesian flags, had sailed from Belawan in Sumatra and were heading for Aceh when they were attacked, Choong said. He said no injuries were reported among the all-Indonesian crew aboard the two vessels, hired by the U.N. World Food Program. The Strait has typically been one of the most pirate-infested sea lanes in the world, but attacks fell to an all-time low last year after increased naval patrolling by Indonesia and its neighbors. "At the moment we don't know if these are isolated cases or the start of attacks again in the Malacca straits," Choong said. "We are still monitoring. But we urge ships to keep a strict piracy watch." He said the first ship, which was heading to Lhokseumawe in Aceh was attacked at 9.45 p.m local time and the other ship, going to Calang, at around midnight. The pirates stole and damaged some of the equipment on board the first ship and robbed the crew of cash and personal belongings on the other, Choong said. Malaysia, Singapore and Indonesia officially began coordinated patrols in the 900-kilometer (550-mile) Malacca Strait in July 2004 after prodding from Washington, which said terrorists could link up with pirates already established in the narrow waterway to blow up an oil tanker or use it as a floating bomb. The International Maritime Bureau had praised the increased security in the Strait for causing a dramatic drop in piracy incidents last year and this year. According to IMB, there were no pirate attacks in the Strait of Malacca in the first three months of 2006, but Sunday's attack raised to five the number of piracy incidents reported since April. Each year, more than 50,000 ships, carrying half the world's oil and a third of its commerce, use the route bordered by peninsular Malaysia and Singapore on one side and the Indonesian island of Sumatra on the other. © 2004-2006 THE MAINICHI NEWSPAPERS.

Japan considers reflagging merchantmen
Tokyo - Japan is preparing to allow foreign-registered oil tankers to fly under the Japanese flag to provide protection from pirates. In a cost-cutting measure, many Japanese shipping companies registered their vessels in Panama and other "flag of convenience" nations, where taxes are lower than in Japan. Growing concerns about rising pirate attacks in waters frequented by Japanese-owned vessels, particularly the Straits of Malacca, have led Ministry of Land, Infrastructure and Transport officials to conclude that flying flag of convenience ensigns from the ships' sterns would provide insufficient protection from attack, while a Japanese or foreign-registered oil tanker owned and run by a Japanese company could hoist the Japanese flag and be protected by Japan. Kyodo news agency reported on July 2 that such a step would require the Ministry of Land, Infrastructure and Transport to separate registration and ensigns. A ministry official speaking on condition of anonymity said that the types of ships to be covered by the planned step will be determined later, while the necessary legislation to revise Japan's Ships Law will be introduced to the Diet as early as 2007. The official added: "It is imperative that ships under government responsibility and protection be increased so that imports of oil and other commodities will not be stopped." © 2006 United Press International, Inc.

Japanese ship foils pirate attack by Simon Montlake
Bangkok - An attempted pirate attack on a Japanese cargo vessel off Indonesia on Tuesday has alarmed shipping companies plying the Malacca Strait, a bottleneck that is critical for far eastern commerce. About half of the world's traded oil passes through the 550-mile channel, which links the Indian Ocean to the Pacific and is only 1.5 miles wide at its narrowest point. In recent years, hundreds of merchant ships have come under attack from pirates armed with automatic weapons, who use fast boats to track their target. On Sunday night, two UN-chartered ships carrying aid to Indonesia's tsunami-struck Aceh province were boarded in the same area by pirates, who stole money and equipment but left the crew unharmed. The crew aboard the Japanese vessel were able to repel their attackers, who struck on Tuesday from an unlit blue-hulled speedboat at the rear of the ship. The pirates tried to board the ship but were deterred by floodlights and water sprayed from a fire hose, according to the International Maritime Bureau, which monitors pirate attacks worldwide. "We are extremely concerned by these three latest attacks in the same area ... we urge ships to keep a strict piracy watch," said Noel Choong, who runs the IMB's regional office in Malaysia. The Malacca Strait, bordered by Indonesia, Malaysia and Singapore, saw a sharp decline in maritime attacks last year, as coordinated naval patrols by the three countries deterred the pirates. A peace agreement in Aceh, where rebels were suspected of abetting maritime heists, also led to improved security. But since April there have been five incidents, including the thwarted attack on the Japanese ship. Analysts say today's east Asian swashbucklers typically focus on quick cash returns rather than cargo heists, unless the commodity is easy to repackage and sell. On rare occasions, pirates will ditch the crew and sail the vessel to another port to sell to a broker. Others instead try to kidnap crew members and extort money from shipping companies for their safe return. It is a practice that has been increasing in recent years, though many ship owners prefer to pay and keep quiet. Maritime officials urge ships' captains to maintain anti-piracy watches around the clock and use bright lights at night to deter attackers. Some counter-terrorism experts have warned that extremists could use an oil tanker in the Malacca Strait as a floating bomb in a busy port such as Singapore. © Guardian Newspapers Limited 2006.

Japanese ship repels pirate raid: crew uses hoses to deter boarding party by Eileen Ng
Kual Lumpur - A Japanese cargo ship on Tuesday foiled a pirate attack in the Strait of Malacca off Indonesia's coast, days after pirates raided two UN-chartered vessels in the same area, a maritime watchdog said. The attacks raised concerns about a resurgence of piracy in the strait, one of the world's busiest shipping lanes and a key link between Asia and Europe. In the latest attack, pirates on an unlit speedboat off Indonesia's Sumatra island followed the 26,989-gross-tonnage Japanese ship and tried to board it from the back, said Noel Choong, chief of the International Maritime Bureau's piracy reporting center in Kuala Lumpur. A duty officer raised an alarm and the crew turned on floodlights and sprayed water from fire hoses, preventing the pirates from boarding, Choong said. On Sunday night, pirates boarded two UN-chartered ships carrying construction material for the reconstruction of the tsunami-hit Aceh, Choong said. He said no injuries were reported among the all-Indonesian crew aboard the two boats, but the pirates stole and damaged equipment on the first ship and robbed the crew of cash and personal belongings on the other. The ships had been chartered by the UN World Food Program. The Strait of Malacca had been one of the most pirate-infested areas in the world, but attacks fell to an all-time low last year after increased naval patrolling by Indonesia and its neighbors. "At the moment we don't know if these are isolated cases or the start of attacks again in the Malacca straits," Choong said. "We are still monitoring. But we urge ships to keep a strict piracy watch." According to the bureau, there were no pirate attacks in the strait in the first three months of 2006, but recent attacks raised to six the number of incidents reported since April. Malaysia, Singapore and Indonesia officially began coordinated patrols in the 550-mile strait in July 2004 after prodding from Washington, which said terrorists could link up with pirates already established in the narrow waterway to blow up an oil tanker or use it as a floating bomb. © 2006, Chicago Tribune.

Japanese vessel foils pirates, UN ships less lucky
Dangerous waters - three attacks in recent days have raised concern in shipping circles that the Malacca Strait is seeing a resurgence in piracy. A Japanese cargo ship yesterday foiled a pirate attack in the Strait of Malacca off Indonesia, days after pirates raided two UN-chartered vessels in the same area, a maritime watchdog said. The attacks raised concerns about a resurgence of piracy in the strait, one of the world's busiest shipping lanes and a key link between Asia and Europe. The waterway was listed by the Britain-based global shipping insurer Joint War Committee of the Lloyd's Market Association as a risk area in June last year, but had become largely peaceful since late last year following increased patrols by Indonesia's navy. "We are extremely concerned with these three latest attacks in the same area," said Noel Choong, head of the London-based International Maritime Bureau's piracy center in Kuala Lumpur, Malaysia. "We have informed the Indonesian authorities, and we hope they will take action to contain the problem," he said. In the latest attack, pirates on an unlit blue speedboat off Indonesia's Aceh Province followed the Japanese ship and tried to board it from the stern, Choong said. A duty officer raised an alarm. The crew turned on floodlights and sprayed water from fire hoses, preventing the pirates from boarding, Choong said. "They stopped the attack by raising the alarm," he said, adding that the pirates, suspected to have guns, chased the ship for five minutes before giving up. On Sunday night, pirates boarded two UN-chartered ships carrying material for the reconstruction of the tsunami-hit Aceh. Both ships, flying Indonesian flags, had sailed from Belawan on Indonesia's Sumatra island and were heading for Aceh when they were attacked, Choong said. He said no injuries were reported among the all-Indonesian crew on the two vessels, hired by the UN World Food Program. The Malacca Strait has typically been one of the world's most pirate-infested sea lanes, but attacks fell to an all-time low last year after Indonesia and its neighboring countries increased naval patrols. "At the moment, we don't know if these are isolated cases or the start of attacks again in the Malacca Strait," Choong said. © 1999-2006 The Taipei Times.

Malaysia, Indonesia stage joint military exercises
Malaysia and Indonesia are staging their joint military exercises in West Kalimantan, Indonesia, involving 5,000 servicemen from sea, land and air forces of both countries, local newspapers reported Wednesday. Malaysia has sent more than 1,100 soldiers, ten aircraft and two warships to participate in the six joint exercises between the two countries, which started last Saturday in Singkawang area in West Kalimantan. Indonesia has dispatched more than 3,800 soldiers, some armored vehicles as well as seven warships and 20 aircraft, including nine C-130s, to join in the seven-day maneuvers. Malaysia and Indonesia have been holding their joint sea, land and air military exercises every five years since 1981 in a bid to strengthen their military cooperation on border and defense affairs. Local newspapers said that the joint exercises this time were also aimed to show the international community that the two countries are able to handle affairs in the region with their own military forces, including the maritime security. © People's Daily Online, China.

Piracy attacks spark crew concerns
The attempted attack by pirates on a relatively large bulker in the Strait of Malacca on Monday has raised concerns over crew safety. “We are worried that pirates may be targeting crew members as hostages for ransom,” Noel Choong, head of the International Maritime Bureau’s Piracy Reporting Centre in Kuala Lumpur, told Fairplay. Choong was referring to the attempted attack on the 26,000-gt Japanese ship in waters off Indonesia’s Aceh coast on Monday. A day before, two smaller vessels chartered by UN relief agencies carrying equipment to tsunami-hit Aceh province were boarded. Cash and some materials were stolen. No crew injuries were reported. Piracy attacks had dropped dramatically this year with only three incidents involving fishing boats reported to date. However, Rohan Gunaratna, a terrorism expert in Singapore, does not see the attacks as bolstering the case for the strait’s continued listing under the war risk category by London underwriters. “Terrorism and piracy are as different as apples and oranges,” Gunaratna told Fairplay. “It is foolish to include the strait under war risk areas.”©Lloyd's Register - Fairplay Limited 1999 - 2006.

Pirate attacks in Malacca Strait
Pirates in the Malacca Strait have attacked two UN-chartered ships and threatened a Japanese cargo carrier, a maritime watchdog has said. The UN ships were set for Indonesia's Aceh province when they were attacked on Sunday, said Noel Choong of the International Maritime Bureau. The pirates stole some cash and construction materials belonging to the UN's World Food Programme. The Japanese ship's crew repulsed an attack on Tuesday. A crew member noticed an unlit speedboat approaching. "They used high-pressure fire hoses and floodlights on the pirate's boat to scare them off, but the pirates, believed to be armed with guns, still chased them for about five minutes before vanishing," Mr Choong told Kyodo news agency. No injuries were reported in the incidents, but they raised fears of a resurgence of piracy in the area. "The attacks took place not far apart from each other. There is a possibility that they were carried out by the same pirates," Mr Choong told reporters on Tuesday. "We hope the two attacks are isolated incidents and not a start of more attacks," he said. The Malacca Strait has typically been one of the most pirate-infested sea lanes in the world - and it is also one of the busiest. Three states bordering the waterway - Malaysia, Indonesia and Singapore - have launched aggressive joint measures to try to cut piracy, including air and naval patrols. © BBC MMVI.

Pirates hit vessels three days in a row by Marc Lourdes
Petaling Jaya - Pirates have made a return to the Straits of Malacca. Three vessels were targeted in the past three days, all of them in the same area off the Aceh coast. The first two vessels were United Nations ships delivering goods to the Aceh tsunami victims under the World Food Programme, and the third a Japanese bulk carrier. According to International Maritime Bureau piracy reporting centre head Noel Choong, the first attack occurred at 9.45pm on Sunday. “The ships were en route from Belawan to Lhokseumawe in Aceh when the pirates, believed to be armed with guns, struck,” he said. Choong added that the pirates stole some of the ship's equipment and damaged other equipment before making their getaway in a waiting speedboat. In the second attack, at midnight the same day, pirates boarded a vessel ferrying construction material from Belawan to Calang, Aceh, and robbed the crew of their money and personal belongings. Choong said that at 4.05am yesterday, pirates made an attempt to attack a third vessel. The pirates, in a blue-hulled speedboat, tried to board the Japanese carrier but were repelled by the ship's crew. The pirates chased the ship for five minutes before giving up. Choong said the attacks were a cause for extreme concern as it was taking place in what used to be a regional piracy hotspot. “Previously, only three attacks were reported in a whole year, but now there has been three in as many days – all around the same area,” he said, urging ships plying the waters to maintain a strict anti-piracy watch. “We are still unsure whether this means the attacks are increasing or if they are just isolated events. “We have informed the Indonesian authorities of the matter and we hope they will take the necessary action.” © 1995-2005 Star Publications (Malaysia) Bhd.

WEEK 2 (9 - 15 July 2006)

Asean to sign four important documents
Kuala Lumpur - Asean countries are expected to sign four important documents during the 39th Asean Ministerial Meeting (AMM) meeting here. The four documents are the Asean Framework Agreement on Visa Exemption, Framework Document for the Plan of Action to Implement the Asean-US Enhanced Partnership, Asean-Canada Joint Declaration to Curb International Terrorism and the Instrument of Extension on the Treaty of Amity and Cooperation with France. Foreign Minister Datuk Seri Syed Hamid Albar said that once the visa exemption agreement was signed by all the 10 member countries, citizens of all the Asean countries could travel to each other's country without visa for two weeks. Although this rule is currently in place among many of the Asean countries, some still have not come out with such exemption. Syed Hamid was speaking to reporters on the preparations of the AMM and other related meetings scheduled to be held at the Kuala Lumpur Convention Centre (KLCC) from July 22 to 28. On the issues to be raised by Malaysia, Syed Hamid said the member countries would discuss the maritime or navigational lane of the Straits of Melaka which was always a matter of interest to Malaysia due to its strategic location as one of the busiest and important sea lanes for ships. Saying that all documents were ready for the AMM ,Syed Hamid expressed his satisfaction over preparations for the meeting which also would see the Post Ministerial Conferences, Asean Regional Forum (ARF) as well meetings with dialogue partners held. "As far I'm concerned, we are very satisfied with the preparations... it is going to be a very successful Asean meeting," he said. Syed Hamid said all the Asean foreign ministers as well ministers of ARF member countries, including North Korea, and ministers from the dialogue partners had confirmed their attendance for all the relevant meetings. On Myanmar, he said Asean was not defending Myanmar for what it was doing unless the situation had changed. But he stressed that Asean always respected Myanmar as a member of the regional grouping. © 2006 BERNAMA.

Deiss aims to raise Swiss presence in Malaysia
The Swiss economics minister, Joseph Deiss, has begun an official visit to Malaysia aimed at strengthening bilateral relations and increasing the Swiss presence. Deiss - who is accompanied by a business delegation on the four-day trip - visited Kuala Lumpur on Wednesday, where he held discussions with Najib Tun Razak, the vice president, and Jamaluddin Jarjis, the science and technology minister. On the first day of the official visit, the two countries examined the state of bilateral relations and a possible trade agreement between the European Free Trade Association (EFTA) and Malaysia. "Malaysia is an extremely innovative country and EFTA has stated on numerous occasions that it is interested in concluding a free trade accord," Deiss told reporters. Malaysia, southeast Asia's third-largest economy, is one of Switzerland's most important trade partners in the ASEAN (Association of Southeast Asian Nations) region. Switzerland currently provides around SFr1.3 billion in annual foreign direct investment. The delegation visited various Swiss companies in the Malaysian capital on Wednesday. According to Seco, some 120 Swiss companies have set up in Malaysia, employing 20,000 workers. The largest include, ABB, Roche, Novartis, Holcim and Haco. As part of the four-day trip, Deiss will also visit Penang, an island in the Straits of Malacca, and meet the Malaysian state's chief minister and Rafidah Aziz, the trade and industry minister. Challenges. Malaysian gross domestic product grew by 5.3 per cent in 2005, largely as a result of increasing private consumption. Malaysia is Switzerland's third-largest trading partner in southeast Asia – behind Singapore and Thailand – with a trade volume of almost SFr800 million ($650 million). Swiss imports from Malaysia totalled SFr580 million, while Malaysian imports from Switzerland came to SFr210 million. By contrast, Malaysia has $44 billion in two-way trade with the United States. Deiss will be aiming to raise the Swiss presence in the country, but Malaysia's government casts a big shadow over the economy, controlling or partly owning more than a third of the stock market. Its promise to conduct an orderly sell-down of state equity has so far led to very few sales of major stakes. Malaysia limits foreign ownership to 30 per cent of local banks and 30 per cent of local insurers, though long-standing foreign owners can go to 51 per cent in the case of insurers. Malaysia has tightly restricted foreign involvement. Opening it up would be a hot issue because an affirmative action policy uses state projects to redistribute wealth to its poorer ethnic Malay population, often preferring Malay contractors.Winning Formula.Previous high-profile Swiss links with Malaysia include the Sauber Formula One team's relationship with Petronas, Malaysia's government-owned oil and gas company. Petronas was one of the Swiss team's main sponsors, supplying lubricants and fuel. In June 2005 BMW acquired a majority stake in Sauber, and for the 2006 Formula One season Petronas is the exclusive partner of the BMW-Sauber team. Petronas is also the main sponsor for Malaysian Grand Prix and co-sponsors the Chinese Grand Prix. © swissinfo SRI.

Lawmakers approve referendum on widening Panama Canal
Panama City - Panama’s congress approved holding a national referendum on a US$5.3bil (rm19.5bil) proposal to widen the Panama Canal to allow it to handle a new generation of giant container ships. It would be the biggest modification to the Panama Canal since it opened in 1914, and supporters said it is needed to guarantee the waterway’s future relevance as well as Panama’s prosperity. Opponents argued it is too costly and would sink the nation in debt. On Friday, the proposal easily passed a third and final vote by legislators and President Martin Torrijos will announce the exact date of the referendum after he signs the bill into law. The date is expected to be in about three months. The outcome of the referendum is binding. “It is a historic moment,” said Legislature President Elias Castillo. “For the first time, Panamanians will decide about the future of the waterway.” Polls have shown that a majority of Panamanians favour the expansion. In all three votes it was approved both by the ruling Democratic Revolutionary Party and opposition parties, who raised minor concerns about when to hold the referendum and how to assure transparency during the construction. The canal is functioning close to maximum capacity and will be rendered obsolete in several years by larger ships if it is not widened, experts say. The canal, which handles 4% of the world’s maritime trade, is used principally by the United States, China, Japan and Chile. Union workers and intellectuals have formed a group called “National Union for No,” which is lobbying citizens to vote down the referendum, arguing that the project lacks an accompanying social development plan and solid financial resources, and will put the country in debt. © 1995-2006 Star Publications (Malaysia) Bhd.

Malaysia denies any armed escort ships in its waters
Malaysian marine police Wednesday said that they had not found any armed escort ships encroaching the Malaysian waters for protecting merchant ships in the Malacca Straits. The Singapore-based armed escort services now maybe have stationed their security personnel on the ships and no longer on escort vessels, according to officers from Malaysia's Southern Region Marine Police based in Malaysia's southern state of Johor. The Singapore-based armed escort services, operated by ex-elite armed forces members, were closely monitored, the officers were quoted by Malaysian media as saying. In another development, the International Maritime Bureau (IMB) Piracy Reporting Center told Malaysian reporters that the IMB did not recognize the armed escort ships in the Malacca Straits. The center reiterated that the IBM supported the Malaysian government's view that the responsibility to secure the strait lies with littoral states, stressing this had been endorsed by the United Nations. If any incident involving the armed escort ships took place in the Malacca Straits, the shipping company would be fully responsible. The escort services currently were still going on, the center admitted, but saying the number of vessels involved was small. © People's Daily Online.

Singapore, S.Korean coast guards conduct anti-piracy exercise
Coast guards from Singapore and South Korea conducted their first ever joint maritime exercise along the Malacca Straits on Friday. The exercise involved eight vessels and some 100 coast guard personnel from the two sides, according to Channel NewsAsia report. During the exercise, the officers boarded a merchant ship, which had been attacked and hijacked by pirates, and brought the robbers under control. Apart from sending a coast guard vessel to act as the merchant ship, South Korea also deployed a helicopter to take part in the rescue mission. The exercise also helped the two partners get to know each other's training method, tactics and capabilities of combating piracy and sea robberies, said the report. Thousands of vessels carrying over 30 percent of the world's commerce and half of the world's oil sail along the Malacca and Singapore Straits every year. The number of reported piracy cases along these sea lanes has dropped to 98 in 2005 from 138 in 2004 and 195 in 2003 due to the strengthening of sea and air patrols by the three littoral states including Singapore, Malaysia and Indonesia. © People's Daily Online.

Singapore and Thai navies conduct bilateral naval exercise by S Ramesh
The Singapore and Thai navies are conducting a bilateral naval exercise Singsiam from Tuesday till the 20th of this month. The Defence Ministry says the exercise is the fourteenth in the series between the two navies. It will have a sea phase and two shore phases to be conducted at Changi Naval Base and Sattahip Naval Base in Thailand. Since it started in 1981, the biennial exercise has expanded in scope and complexity over the years, evolving from conventional naval warfare exercises to incorporating maritime security exercises. This year's drill will also have maritime surveillance and tracking for the first time. © 2006 MCN International Pte Ltd.

WEEK 3 (16 - 22 July 2006)

Malaysia in the market for new military hardware by Shahriman Johari
London - Malaysia plans to buy two new warships and eight trainer aircraft to beef up its military capability. The Government has issued a letter of intent to Britain’s BAE Systems for the two frigates while talks on the training fighters with Italy’s Aermacchi are in the preliminary stage. Deputy Prime Minister Datuk Seri Najib Razak, who is on a one-week working visit to Br itain, including attending the Farnborough International Airshow, said Malaysia was also in the market for search and rescue aircraft. Also on its shopping list are attack helicopters and aircraft for maritime surveillance. The ships were likely to be built in Labuan, he told Malaysian reporters at a briefing here yesterday. He declined to say how much the additional military hardware would cost. “We can’t just look at the cost, we have to look at the impact on the economy because the ships will be built in Malaysia,” Najib said. Small and medium-sized com - panies can benefit from the project as it will create new jobs. Construction of the new warships will take up to five years. “These will be the most advanced warships to be constructed in Malaysia.” The new ships will double the number of frigates to four. The navy now has the Lekiu and Jebat . It needs four to make it a viable number to operate a fleet. As for the Aermacchi trainer aircraft, Najib said, it was needed to help pilots prepare for the arrival of the Russian Sukhoi jet fighters that Malaysia was buying. “When the Sukhois arrive, we need a group of pilots who are highly-skilled.” When asked whether he would be visiting the site for the proposed sports training centre in Brickendonbury, he said: “No, I’m not going there.” Plans to build the centre has drawn flak from several quarters. “The details, scope and budget have not been approved. “We have only approved its concept but the Youth and Sports Ministry needs to make a concrete proposal for the Government.” Najib also met Lord Paul Drayson, the Minister for Defence Procurement, and Alan Garwood, the head of Defence Exports Services Organisation. He had asked Drayson to share Britain’s experience in Private Finance Initiative, a new way of funding projects that was being introduced by the Malaysian Gover nment. “In Britain’s context, it is used widely and has given good returns to them,” Najib added. © The New Straits Times Press (Malaysia) Berhad.