21 Pacific navies begin anti-sea mine exercise in South China Sea
Kuala Lumpur - Navies from 21 nations were taking part in counterterrorism exercises in the South China Sea Wednesday, in efforts Malaysia's armed forces chief hoped will prepare the region to cope in the event of a maritime attack. Navies from 21 Pacific nations, including the United States, Australia and Japan, are gathered on the east coast of Malaysia for the third Western Pacific Mine Counter Measure and Diving Exercise, Malaysia's Defense Ministry said in a statement. After launching the biennial exercise late Tuesday, Malaysia's armed forces chief Adm. Mohamad Anwar Mohamad Nor told The Star newspaper the operations would help boost regional cooperation against maritime terrorism. Eighteen ships, 157 divers as well as other personnel are involved in the 12-day exercise to hunt, defuse and destroy mines in coastal waters of the South China Sea, Anwar said. Sea mines, which could simply be explosives in an oil drum or more sophisticated devices that are easily triggered, are cheap but potent weapons that terrorists could use to destroy ships and disrupt trade, he warned. "We have strengthened our ability to counter this threat by conducting countermeasure exercises and sharing expertise with other countries," The Star cited him as saying. The exercises, which began in 2001, are aimed at strengthening ties among Western Pacific navies and creating a multinational anti-mine task force that can be deployed in the Pacific region, the Defense Ministry said. Participating ships, which are now gathered at a Malaysian naval base in Kuantan on the east coast, are scheduled to sail out to sea on Saturday, it added. Experts are worried about pirate and terrorist threat in the region, especially in the Malacca Strait which links Asia with Europe and the Middle East, and carries half of the world's oil trade and a third of global commerce. Pirate attacks in the Malacca Strait dropped to 12 last year, down from 38 in 2004. More than 50,000 ships navigate the waterway, which separates Indonesia from Malaysia and Singapore, each year. © 1999~2006 The China Post.

Asians concerned by fatigue views
ASIAN ship owners are seeking a "wider view" of seafarer fatigue than the current more focused approach, which might increase pressure for mandatory crewing levels per ship. The Asian Shipowners Forum meeting held in Japan this week took note of a UK report that identified fatigue as a factor contributing to maritime incidents, but forum members believe it remains essential to pinpoint the cause by examining the problem holistically. "They were very reluctant to see a mandated minimum crew," one source revealed. Hong Kong Shipowners Association assistant director Gilbert Feng reportedly summed up the meeting's cautious view with words to the effect that: "There is no point in prescribing a cure until one has identified the disease". Seafarer fatigue remains a sensitive issue for Asian ship owners, who apparently maintain that consideration needs to be given to the type of ship, its trade and other specific circumstances. In February, the ILO adopted its Maritime Labour Convention, which sets minimum labour requirements for seafarers. ASF shipowners and managers, who control about 40% of the world's tonnage, are keen to adopt a stronger voice on global shipping matters, and some have already expressed concern at what they see as overly "eurocentric" responses to certain shipping issues. ©Lloyd's Register - Fairplay Limited 1999 - 2006.

Energy defence to be key agenda in future, says Defence Forces Chief
Lumut - The Shangri-La Dialogue, an Asia-Pacific security forum that was held in Singapore recently highlighted the importance of energy security, said Malaysian Defence Forces (ATM) chief Admiral Tan Sri Anwar Mohd Nor. "Previously, it was maritime security. Now it is energy security, especially that of oil. Its security has to be safeguarded because it is vital for the economies of growing countries. "In this regard, maritime security to protect vessels carrying oil and fuel products will become a key agenda for the nation," he told reporters after officiating the start of the Western Pacific Counter Terrorism and Diving Exercise (WP MCMEX/DIVEX), here Tuesday. The WP MCMEX/DIVEX is a biennial exercise involving the navies of 21 countries in the Western Pacific region and comes under the auspices of the Western Pacific Naval Symposium (WPNS). The exercise, which will last until June 17, is the third in its series since it was introduced in 2001 in Singapore and this time is being carried out in Lumut, Kuantan, and the South China Sea. A total of 12 warships -- two from the Royal Malaysian Navy (RMN), Royal Australian Navy (two), Japan Military Defence Forces (three), Republic of Singapore Navy (two), Republic of Indonesia Navy (two) and the United States Navy (one) -- and 145 divers from the 21 nations are involved in the exercise. Commenting on the exercise, Anwar said it was a proactive measure taken by RMN to face the possible threat of mines being planted by terrorists in seaways in the region. "We have to be always prepared for any eventuality," he said. Meanwhile, RMN chief Tan Sri Ilyas Din said he was satisfied with the performance of the KD Kedah, RMN's first new generation patrol vessel (NGPV) which was commissioned yesterday, although completed 18 months behind schedule. "All systems are working well and we are confident it will perform to expectations," he said. The ship was built at the PSC Naval Dockyard in Lumut in a joint-venture with the German Naval Group (GNG) of Germany. © 2006 BERNAMA.

Fleet divers in Malaysia for mine hunting by Melissa Atkinson
Fourteen sailors from the Canadian Forces are in Malaysia this week to share and gather information on mine warfare. Six mine countermeasure divers and eight mine warfare staff from across Canada are spending two weeks in Kuantan for the Western Pacific Naval Symposium (WPNS) Mine Countermeasures (MCM) and dive exercises. WPNS brings western pacific nations together to discuss maritime issues, share capabilities and strengthen interoperability. “The common objective is to train together and develop common operating protocols,” says LCdr Stephan King, Mine Warfare Officer for Maritime Operations Group Four. Navy personnel from 21 Pacific Rim countries, involving 18 ships and more than 100 divers and mine warfare staff, will take part in a week of lectures followed by hands-on exercises off the Malaysian east coast. Canada is providing many lectures and demonstrations on subjects such as diving in mildly contaminated water, how mine warfare specialists are employed above and below the water, and Canadian mine warfare planning software. The six clearance divers will work out of the Kuantan Naval Base during the exercise portion, teaming up with other nations to conduct clearance of ground and moored mines in shallow water, and pouncer operations, where a diver is dropped to the water from a helicopter to detonate a floating mine. Divers will also have the rare opportunity to blow up exercise mines. “It ’s a major opportunity to hone demolition skills because the host country is providing explosive charges and an exercise area,” says LCdr King. Canadian divers are often limited to detonating mines when on course or training on dedicated demolition ranges. “Besides following the proper procedures for mine neutralization, there is so much to know about properly handling explosives, from making sure they are secure in the box to the time they are activated, to coping with nerves when dealing with something that could kill you if handled incorrectly. Because each Canadian diver will have several opportunities to apply their full repertoire of skills, they reboot and maintain their skills for future use,” he says. The divers will also have the opportunity to observe other nations’ procedures, which often contributes to new ideas and capabilities, adds LCdr King. The eight mine warfare staff will work in the MCM headquarters to task and guide mine hunting and clearing hunt efforts. “It’s a very unique opportunity to work in an area not normally accessible to Canadian sailors, with different communications systems, both language and information management, and different cultural and political philosophies,” says LCdr King. As part of the trip, the Canadian contingent will hand out gifts unique to Canadian culture, such as aboriginal art and coffee table books about Canada. LCdr King says the Malaysian exercise is a great springboard to a local mine warfare exercise in Nanoose Bay June 26 to 30. Five Maritime Coastal Defence Vessels, mine countermeasure divers and port inspection divers will hone their capabilities in searching for mine shapes in the area. © Lookout Newspaper (Victoria, British Columbia).

India, Malaysia discuss Malacca Strait security
New Delhi - India and Malaysia discussed on Wednesday an offer from New Delhi to help patrol the Strait of Malacca, the main ship passageway between the Indian Ocean and the Pacific Ocean. India repeated its offer to "share its expertise in maritime security with nations of the region," an Indian official said, after Defence Minister Pranab Mukherjee met his visiting Malaysian counterpart Najib Razak in New Delhi. Fears are increasing about piracy and possible terrorist attacks in the Malacca Strait, one of the world's most important waterways with 50,000 ships carrying about one-third of the globe's trade passing through it each year. Security in the narrow stretch of water between Malaysia and the Indonesian island of Sumatra is especially important for India as more than 50 per cent of its maritime trade sails through it. Mukherjee unveiled India's offer to help out on Saturday during a regional security conference in Singapore. "India's role is crucial for ensuring and maintaining long-term peace, stable balance of power, economic growth and security in Asia," Mukherjee told the annual gathering of officials and experts known as the Shangri-La Dialogue. During his talks with Razak, Mukherjee stressed that India would only play a role if it got the nod to do so from countries around the Strait such as Malaysia, Singapore and Indonesia, the defence ministry official said. Razak, who is also Malaysia's deputy prime minister, is on a six-day visit to India during which he is also slated to meet Prime Minister Manmohan Singh. While he and Mukherjee were talking, delegations of the two countries met separately, he added. India hopes a role in providing naval security would provide it with an opportunity to become a key driver of Asian prosperity alongside other countries like China and Japan, and give it greater bluewater dominance in the Indian Ocean. © Zee News Limited.

India ready to help protect Malacca Strait
Singapore - India is ready to do its part to ensure peace and stability in East Asia including helping protect the busy Strait of Malacca, Defence Minister Pranab Mukherjee said on Saturday. He told a high-level regional security conference in Singapore that India would increasingly become a key driver of Asian prosperity alongside other big countries like China, Japan and Indonesia. “India’s role is crucial for ensuring and maintaining long-term peace, stable balance of power, economic growth and security in Asia,” Mukherjee told the annual gathering of officials and experts known as the Shangri-La Dialogue. The East Asia Summit (EAS) that took place for the first time last year in Kuala Lumpur is a vehicle that can accelerate regional cooperation, Mukherjee said. “As a member of the EAS, India fully supports and looks forward to constructive cooperation with others in the group to create the framework for greater regional integration and cooperation,” he said. India is already playing a key regional role with its growing trade ties with Southeast Asia and China, as well as rising investments in India from Japan and South Korea, Mukherjee said. “These ties will grow manifold in the coming years and would need sustained political, economic and security dialogue mechanisms for institutionalized support,” he said. Mukherjee said his country was ready to cooperate with the region to strengthen maritime security in the Malacca Strait, one of the world’s most important waterways with 50,000 ships carrying about one-third of the globe’s trade passing through it each year. Security in the straits is important for India as more than 50 percent of India’s maritime trade has to go through it, the minister said. “There is a need to increase and strengthen regional cooperation to enhance maritime security,’ Mukherjee said. “We believe that through the coordination of our individual efforts, the security of the sea lanes will be enhanced,” he said. India’s participation in ensuring safe passage in the Malacca Strait will however be subject to approval of the states located along the waterway, Mukherjee said. “Subject to the desire of the littoral states, as a major state-user, India would be willing to assist the project in whatever capacity is deemed suitable,” he said, referring to the three-nation initiative involving Singapore, Indonesia and Malaysia to monitor the strait. © Daily Times (Pakistan)

India willing to help littoral states patrol Malacca Straits by S Ramesh
The United States says America will always be a Pacific nation and stay engaged in this part of the world. And India says it can help enhance the region's maritime security, especially in the Straits of Malacca. These pledges were made in Singapore on Saturday by their defence ministers at the annual security meeting dubbed the Shangri-La Dialogue. US Defence Secretary Donald Rumsfeld said that in the present security environment, cooperation among free nations is not just desirable but critical, especially when freedom is increasingly under assault by rogue regimes and Islamic extremists. He said: "The struggle that is taking place in that religion is relatively between a small minority of violent extremists against an overwhelming majority of the remaining Muslim people. How is this going to end? It is going to end over a long period of time with the majority prevailing and what we need to do is believe in free systems and don't believe that it is desirable for people to go out and kill innocent men, women and children." On Iraq, Mr Rumsfeld said that the US would stay the course even if things got tough. He said: "I read every day that the reason the United States is in the Middle East is for oil. It's not why we are there. We do not intend to stay there and take the Iraqi oil. We cannot occupy the country for any period of time. "Our troops would like to go home, they will go home at a pace when we, with our friends and allies in the coalition, pass on the responsibility to the Iraqi security forces so that they can pull up their socks and take responsibility for the country. "It is the Iraqi people who will have to suppress the insurgency, not the coalition forces, not foreign forces." Mr Rumsfeld also commended the littoral states of Indonesia, Malaysia and Singapore for the efforts that the three states have taken to enhance the safety and security of the sea lines of communication along the Malacca Straits. And another country which is prepared to cooperate in this area is India. Indian Defence Minister, Pranab Mukherjee, said: "The dimensions of maritime security loom large on radar screen. Singapore stands at the crossroad of one of the important waterways of the world, the Straits of Malacca. "In recent years, piracy has been a major challenge in this region and we can only hope that maritime terrorism does not follow closely behind. "There is a need to increase and strengthen regional cooperation to enhance maritime security. "India has been working with the countries in the region both bilaterally and multilaterally. "Subject to the desire of the littoral states, India would be willing to assist in the project in whatever capacity if deems suitable." More than 50 per cent of India's maritime trade passes through the Straits of Malacca. © 2006 MCN International Pte Ltd.

KL urges Malacca Strait users to share cost of law enforcement
Kuala Lumpur - Malaysia on Thursday urged countries and shipping companies to emulate a Japanese organization and bear the cost of law enforcement in the piracy-afflicted Malacca Strait. Deputy Prime Minister Najib Razak said the private Japan-based Nippon Foundation is the first to contribute directly to Malaysia's maritime safety costs, noting that Malaysia and Japan have long cooperated closely in international politics, economicissues and security. During the hand-over of a training ship from the foundation to the Malaysian Maritime Enforcement Agency, the Southeast Asian country's coast guard, Najib asked other nations to follow suit. "Nothing is free," he was quoted as saying by the national news agency, Bernama. "We can work together to achieve the objective of making the Malacca Strait safe." Najib stressed such efforts shouldn't undermine thesovereignty of Malaysia, Indonesia and Singapore, all of which border the strait that links East Asia and the Middle East and Europe. The three nations launched coordinated maritime patrols in the strait in mid-2004, and air patrols last year, which some have credited with reducing pirate attacks in the Malacca Strait to 12in 2005, down from 38 the previous year. Najib acknowledged that following the Sept. 11, 2001, terrorist attacks on the United States, there were concerns that militants in Southeast Asia might try to hijack a ship and use it to launch a sea-borne attack. Each year, more than 50,000 ships, carrying half the world's oil and a third of its commerce, navigate the waterway. © The Jakarta Post.

Malaysia does not envisage new military alliance
Kuala Lumpur - Malaysia does not envisage participation in any new military alliance as it is unnnecessary and incurs more expense than benefits, said Datuk Seri Najib Tun Razak. The Deputy Prime Minister said Malaysia, however, would continue to be a party to the Five Power Defence Arrangement. "We hold steadfast to our policy of not joining or forging military alliance, although we will continue to cooperate closely with other countries," he said in his luncheon remarks in conjunction with the Asia Pacific Roundtable here, Thursday. Najib who is also the Defence Minister said Malaysia should recognise that the partnership had evolved into its present focus on building capabilities for dealing with non-traditional threats such as terrorism and piracy. "We believe that the use of military instrument is only part of Malaysia's array of tools for ensuring peace and security," he said. In his speech, Najib also said that Malaysia's defence policy would be anchored on five key fundamentals. Among them, the country will continue to keep its airspace, maritime waters and land mass safe and would apply the principle of effective deterrence. "Our security situation must be such that we can go to bed everynight with the assurance that when we wake up the next morning, Malaysia will remain secure and safe for everyday life," he said. The Deputy Prime Minister said that Malaysia must also be prepared for surprise and unpleasant situations due to the present trends in global threats. He said Malaysia expected further improvement in the generally favourable security environment in Southeast Asia through the gradual development of an Asian Security Community. Malaysia did not believe that China will pose a major military threat to any country in the region, he added. © 2006 BERNAMA.

Najib: share cost to maintain safety in Malacca Strait
Port Klang - Malaysia called on foreign countries and shipping companies to share the cost of maintaining safety in the Straits of Malacca. “Let us share out the cost and burden to ensure the strait is secure. There is no such thing as a free lunch,” said Deputy Prime Minister Datuk Seri Najib Tun Razak. However, Najib said the sharing of cost and burden must be in line with international law. The sovereignty of the coastal countries must also be ensured. “The primary responsibility of maintaining the Malacca Straits must remain with the three coastal countries of Malaysia, Indonesia and Singapore,” said Najib at the presentation ceremony of a training vessel on Thursday. © 1995-2005 Star Publications (Malaysia) Bhd.

USS Ronald Reagan docks at Westports
The world’s largest aircraft carrier, the USS Ronald Reagan, docked at Westports last Saturday on its first goodwill visit to Malaysia. The 96,000-tonne nuclear- powered Nimitz-Class vessel arrived with 5,300 personnel on board which included a 3,200 men and 1,700 Air Wing officers. Port Klang is the fourth port of call for the 330-metre- long US warship since its deployment to the Western Pacific from its home port in San Diego, California, in January this year. The ship’s commander, Captain Terry B. Kraft, said the USS Ronald Reagan was honoured to berth at Westports for three days although it was a busy commercial port in the region. “We value the excellent relationship which has enabled the smooth flow of our carrier to Westports. I would very much like to appreciate the services and security provided at Westports, especially the pilots who were very professional in their services,” said Kraft after receiving Westports executive director Ahmayuddin Ahmad at the vessel yesterday. Kraft was pleased with the traffic flow along the Straits of Malacca which he described as a “super highway”. He noted that it is an important waterway for all commercial ships plying between east and west. He also said that Malaysia, Singapore and Indonesia must continue to work closely to ensure the Straits of Malacca remains safe for all vessels at all times. Commissioned in 2003 and named after the former US President, the USS Ronald Reagan has a top speed of more than 30 knots. © The New Straits Times Press (Malaysia) Berhad.

US, Indonesia Negotiate Military Issues by Lolita C. Baldor
Jakarta - The United States needs to let other countries decide for themselves how to fight terrorism to counter perceptions the U.S. is overbearing, Indonesia's defense minister lectured visiting Defense Secretary Donald H. Rumsfeld Tuesday. In turn, Rumsfeld talked to Defense Minister Juwono Sudarsono and Indonesia President Susilo Bambang Yudhoyono about a need for their nation to continue efforts to ensure that human rights abuses are no longer a problem with its military. After more than seven years of estrangement, the United States is working to improve its military relationship with Indonesia in the face of growing disenchantment over the Iraq war among the people in this Muslim nation. ``As the largest Muslim country, we are very aware of the perception ... that the United States is overbearing, over-present and overwhelming in every sector of life in many nations and cultures,'' said Sudarsono, seen as a close U.S. ally in the war on terror. He said the United States risks angering groups across the world who feel threatened by America's military and economic might. There is a feeling, he said, that ``the sun never sets on the back of an American GI.'' Rumsfeld, the latest in a string of U.S. officials who have visited Jakarta, defended U.S. policy, saying ``I never have indicated to any country that they should do something they were uncomfortable doing.'' In a commentary appearing in Tuesday's The Wall Street Journal Asia, he said Washington and its allies in the region needed to decide ``whether to openly combat the messages of hate, intolerance, and incitement - that can, in some cases, gain traction - or to try to placate and accommodate those whose vision of the future deems that it is acceptable, even desirable, to kill innocent men, women and children to promote their goals.'' Rumsfeld wrapped up a five-day, three-nation tour in Southeast Asia. He now goes to Brussels, Belgium, for a NATO meeting of defense ministers where one of the key topics is likely to be the transfer of authority for portions of Afghanistan from U.S. troops to NATO forces. Portions of Afghanistan have seen new surges of violence that military officials are struggling to control. Rumsfeld's brief stop in Indonesia followed visits to Vietnam and Singapore, but it was here he confronted some of the more contentious issues. In addition to improved maritime security in the strategically important Malacca Straits and U.S. plans for military equipment sales to Indonesia, the leaders also discussed broader programs to curb the proliferation of weapons of mass destruction. Sudarsono said that ``perhaps we can agree on a limited framework of cooperation'' on proliferation initiatives. Despite U.S. pressure, he said his country is reluctant to pursue a multilateral permanent structure. Still, senior U.S. military and diplomatic officials said that during discussions Tuesday with Rumsfeld, the Indonesian leaders expressed a greater willingness to participate in anti-proliferation activities. The Indonesians are interested in promoting the reduction of weapons of mass destruction but are cautious about entering formal agreements with the U.S., an American military leader said. The officials spoke on condition of anonymity because the meetings were private. Under normal circumstances, countries with nonproliferation agreements share intelligence and other information about threats, and are willing to intervene if a security problem arises within their boundaries. Rumsfeld told reporters in Jakarta that recently restored military ties with Indonesia had already benefited both countries - pointing to the help U.S. troops gave survivors of the 2004 tsunami that ravaged Aceh province and last month's powerful earthquake in Yogyakarta. ``We need to be able to work together and we need to be able to communicate with and understand each other when a disaster of that type happens,'' he said. Rumsfeld declined to provide details about human rights discussions during his meetings, but the senior officials said the issue came up repeatedly. Washington cut all military ties with Indonesia in 1999 after its army and militia proxies devastated East Timor during its break from Jakarta. Over the years the U.S. restored partial relations and it lifted a military embargo in November, citing Indonesia's cooperation in fighting terrorism. Indonesia has arrested at least 200 suspected Islamic radicals in the past few years, and suffered a string of bomb attacks blamed on the al-Qaida-linked terror group Jemaah Islamiyah, including the 2002 and 2005 Bali bombings that together killed 222 people. The U.S. is particularly concerned about security in the Malacca Straits. The waterway, straddling Malaysia, Indonesia and Singapore, has long been a hotbed of piracy. The straits link the Indian and Pacific Oceans and carry half the world's oil and a third of its commerce. Though Indonesia and Malaysia have ruled out any direct foreign intervention, which they view as a threat to their territorial sovereignty, Sudarsono said Tuesday he would welcome U.S. assistance in providing equipment and technical support for improved maritime control. © Guardian Newspapers Limited 2006

WEEK 3 (11 - 17 June 2006)

An arms race is taking place in Southeast Asia by Hideaki Kaneda
Southeast Asia's return to prosperity since the financial crisis of 1997 has brought a region-wide splurge on new weapons. Most Southeast Asian countries are, indeed, now busily modernizing their armed forces. So far, most have done so without compromising their autonomy in security matters. But with China's military build-up causing nervousness everywhere, many governments in the region are starting to work with outside powers. Indonesian President Susilo Bambang Yudhoyono has perhaps been the most assertive. In addition to becoming more active in world diplomacy, Yudhoyono will meet Russian President Vladimir Putin in Moscow this month to discuss buying Russia's newest fighter jets. Indonesia is seeking to form an air-defense squadron of 12 jets, with eight Russian fighters to complement the two Russian Su-27SKs and Su-30MKMs that it has already bought. Elsewhere in the region, Singapore has apparently opted to purchase 12 new F-15SG fighter aircraft from the United States. Thai Prime Minister Thaksin Shinawatra met Putin late last year and tentatively agreed to purchase 12 Su-30MKMs. Malaysia has agreed to buy 18 Su-30MKMs over the next two years, while Vietnam has purchased 36 SU-27SKs, 12 of which are already in service. With the exception of Singapore, it seems that Russian fighter-attack aircraft are the region's weapon of choice at the moment. Russia's growing slice of the local arms market worries the US, the world's biggest weapons supplier and still Asia's greatest military power. Thus, for example, last November, the US lifted its six-year embargo on military sales to Indonesia, imposed in 1999 in response to human rights abuses in East Timor. Indonesia immediately expressed its intention to purchase C-130 transport aircraft, as well as fast patrol boats to conduct "anti-terrorism and anti-piracy measures." Yet Indonesia is also trying to align itself with Asia's rising power, China, by seeking greater defense and security cooperation. As a result of these improved relations, Indonesia has received Chinese short-range missile technology. The possibility that Southeast Asia's governments might begin to play America and China off against each other is one of the concerns that most animates the latest US quadrennial defense review, which is intended to "focus on the Pacific Ocean" in awareness of China's growing naval power. Undoubtedly, the US will try to build closer ties with Indonesia through greater military cooperation, because Indonesia borders the region's key maritime lines of communication. In particular, Indonesia will inevitably become involved in the tug of war between the US and China for influence over the vitally important Malacca Strait. Because China must import vast quantities of oil through the strait, the sea lane has become a central element in the country's security strategy. For this reason, China is attempting to use economic and military aid as leverage to improve relations even with countries with which it has had military confrontations in the past, most prominently Vietnam and the Philippines. India, too, is now joining the military build-up. It has actively led regional multilateral joint exercises, such as the joint naval exercise it hosted in the Andaman Sea, in the eastern Indian Ocean, earlier this year. Nine Asian Pacific countries took part, including Indonesia, Malaysia, Singapore, and Thailand. Both India and China are each seeking greater influence over the strategically important country of Myanmar. For example, after Myanmar signed an agreement with China in 2005 to supply natural gas, India responded by cutting its own gas deal with Myanmar. South Korea, too, has joined the scramble. President Roh Moo-hyun visited Malaysia and agreed to expand mutual economic cooperation mainly in information technology, biotechnology, and resources and energy. Roh reportedly also discussed exporting defense materials worth $2.3 billion, including training aircraft, destroyers, and armed vehicles. Moreover, in January 2006 Korean Defense Minister Yoon Kwang-ung agreed with the Philippines to deliver two used patrol boats. In this crowded power play, only Japan is left out, choosing for the most part to remain aloof and cultivate its relations with the US. But despite deep historical animosity over World War II, there are increasing calls in the region for Japan to expand its influence to counterbalance China. In reality, Japan is not ready for this, because it still strongly adheres to a policy of "self-imposed restraints" against "influence over other countries in security and defense," including weapons exports. In the 1960s, as its economic takeoff was proceeding, Japan initiated a serious dialogue with regional players, aiming to build stronger relations with countries that it had once conquered and occupied. It is no overstatement to say that those efforts, which boosted trade and investment in the region, formed the foundation of Japan's national power today. But now Japan's political and economic influence in Southeast Asia is gradually declining, owing in part to its failure to exertinfluence over security and defense matters. For those Asian countries that recall Japan's moderate and sensible advancement of regional policies since the 1960s, there is a growing expectation that Japan should re-think its stance. At a time of regional uncertainty about Chinese policies - including the looming prospect of China's first aircraft carrier - Japan's participation in the evolving Asian security framework is fundamental to stability. The time when Japan could remain on the sidelines is over. [Hideaki Kaneda, a retired vice admiral of Japan's Self Defense Forces, is director of the Okazaki Institute in Tokyo - The Daily Star publishes this commentary in collaboration with Project Syndicate (www.project-syndicate.org). © 2004, The Daily Star.

Bright outlook for offshore support vessels industry
Deep water oil and gas exploration and production activities by oil majors are likely to pick up steam and go forward with the surging demand and tight supply situation that has pushed crude prices to new highs in recent months. "This will have tremendous spillover effects on the offshore support vessels market, prompting a bright outlook for this sector in years ahead," said Coastal Contract Bhd executive chairman Ng Chin Heng. Since the beginning of this year, Coastal group has booked the sale of one unit of the offshore support vessel. Five other firm orders have also been placed with the Coastal group from customers from the Middle East and Western Europe. Three of these vessels are expected to be delivered this year, it said in its 2005 Annual Report. The favourable conditions of the region's energy and oil transportation markets have led to positive flow-through opportunities for the Coastal group, which is involved in the shipbuilding and ship operations sector. In this regard, the sales of vessels broke new ground to carry the group's revenue over the RM100 million-mark, said Ng. The revenue contribution of the shipbuilding division is RM85.7 million, a notable increase of 63 per cent from RM52.7 million in the previous year. This increase is a reflection of the strong demand for high-powered tugboats and barges of greater capacity on account of sturdy marine transportation activities in the region. Such achievement is attributable to the group's sound product quality and reliability as it relentlessly pays close attention to customers' requirements and market changes. With numerous platforms reported to be installed in Malaysian waters over the next three to five years there is a correspondingly greater need for a wider range of support services to facilitate the endeavour. At the chartering front, with heightened efficiency driven up by the division's renewed fleet, the group will commit a higher ratio of its fleet to the medium- and long- term charter business with a lower portion operating in the spot market. Also, by 2010, Malaysia is expected to consume 20 million tonnes of coal a year, where much of the supplies will be derived from Indonesia and Australia. Given the sound knowledge and extensive experience in the maritime transportation business, Coastal group is primed to capitalise on any prospects that comes its way. © The New Straits Times Press (Malaysia) Berhad.

Canada Joins Seven Nation Pacific Rim Exercise
Esquimali, B.C. - For the 20th time since 1971 Canadian ships and aircraft will participate in the multi-national exercise RIMPAC during July in waters off Hawaii. Participating nations include Canada, Australia, Chile, Japan, Peru, the Republic of Korea, the United Kingdom and the United States. Observer nations are Ecuador, Malaysia, Mexico, the Philippines, Russia, Singapore and Thailand. Commodore Bruce Donaldson, Commander Canadian Fleet Pacific, will serve as the Deputy Commander Combined Task Force leading a multi-national force comprised of sea, air and land units. Canada’s contribution includes HMC Ships, Algonquin, Vancouver, and Regina with two CH-124 Sea King Helicopters and air detachments from 443 Squadron at Pat Bay, plus a team of clearance divers from Fleet Diving Unit (Pacific). For the first time since 1996, there will be six CF-18 Fighters from 3 Wing Bagotville supported by a CC-130 Hercules from 435 Squadron, 17 Wing Winnipeg. Two CP-140 Aurora Maritime Patrol Aircraft from 407 Squadron at 19 Wing Comox round out air force support. HMCS Algonquin and Vancouver leave Esquimalt this Friday, while HMCS Regina is already underway. Following RIMPAC, Regina will carry on to the Western Pacific to make port visits in South Korea, China and Japan. During the workup portion of the exercise HMCS Algonquin and Vancouver will fire surface-to air and surface-to-surface missiles. The CF-18 detachment will take part in live fire missions including air-to-surface and air-to-air missile shoots. The first RIMPAC exercise took place in 1971 and now occurs every second year. This year is the 20th exercise in the series. RIMPAC is intended to enhance the tactical proficiency of the participants in a wide array of combined operations at sea and in the littoral. This year’s exercise includes more than 35 ships, six submarines, over 160 aircraft and 18,000 sailors, marines, soldiers and aircrew. Canadian personnel number about 1,000 at sea and ashore. On Canada’s role in the exercise, Commodore Donaldson declares, “It is Canadian participation in exercises like RIMPAC that allows the Canadian Forces to be effective and leading contributors to multinational operations around the world. This exercise enhances our ability to work with the forces of other nations and it promotes stability in the Pacific Rim region to the benefit of all.” The United States Third Fleet, commanded by Vice Admiral Barry M. Costello, is responsible for the overall coordination of the exercise. Each of the participating countries maintains national command and operational control of its forces throughout the exercise.

IMB urges Lloyd's to drop Malacca Strait from piracy blacklist
Kuala Lumpur - An international maritime watchdog has urged leading insurer Lloyd's to remove the Malacca Strait from a list of dangerous waterways, saying piracy attacks have fallen sharply there. 'Based on the figures, there is no justification for them to include Malacca Strait in the list, unless Lloyd's has some other information that we are not aware of,' said Noel Choong, head of the International Maritime Bureau's (IMB) Piracy Reporting Centre. Choong said the Malacca Strait is 'not a hot spot at the moment' as the three states bordering the strategic waterway -- Malaysia, Indonesia and Singapore have launched aggressive joint patrols. The Lloyd's Market Association's Joint War Committee decided last July to add the strait to a list of 20 areas worldwide -- alongside Iraq, Lebanon and Nigeria -- that it deemed security threats to shipping. The classification by the LMA, a body that advises members of insurer Lloyd's of London, could result in underwriters imposing additional premiums on ships plying the strait. Choong's comments come after Lloyd's decided last month to retain the Malacca Strait on its war and terrorism listing. However, during the first quarter of this year the IMB said it did not receive any reports of armed robbery or pirate attacks in the Malacca Strait which runs between Indonesia and Malaysia. In April there were three attacks on fishing boats, Choong said, adding that in one instance, pirates in a speed boat fired at a fishing vessel but that the crew escaped unhurt. 'From our view, the problem areas now are Somalia, Chittagong in Bangladesh and Nigeria,' Choong told Agence France-Presse, adding that there had been 22 attacks on ships at anchor in Chittagong port between January and June this year. © 2006 Forbes.com Inc.™

India, Malaysia discuss Malacca Strait security
New Delhi - India and Malaysia discussed on Wednesday an offer from New Delhi to help patrol the Strait of Malacca, the main ship passageway between the Indian Ocean and the Pacific Ocean. India repeated its offer to “share its expertise in maritime security with nations of the region,” an Indian official said, after Defence Minister Pranab Mukherjee met his visiting Malaysian counterpart Najib Razak in New Delhi. Fears are increasing about piracy and possible terrorist attacks in the Malacca Strait, one of the world’s most important waterways with 50,000 ships carrying about one-third of the globe’s trade passing through it each year. Security in the narrow stretch of water between Malaysia and the Indonesian island of Sumatra is especially important for India as more than 50 percent of its maritime trade sails through it. Mukherjee unveiled India’s offer to help out on Saturday during a regional security conference in Singapore. “India’s role is crucial for ensuring and maintaining long-term peace, stable balance of power, economic growth and security in Asia,” Mukherjee told the annual gathering of officials and experts known as the Shangri-La Dialogue. During his talks with Razak, Mukherjee stressed that India would only play a role if it got the nod to do so from countries around the Strait such as Malaysia, Singapore and Indonesia, the defence ministry official said. Razak, who is also Malaysia’s deputy prime minister, is on a six-day visit to India during which he is also slated to meet Prime Minister Manmohan Singh. While he and Mukherjee were talking, delegations of the two countries met separately, he added. India hopes a role in providing naval security would provide it with an opportunity to become a key driver of Asian prosperity and give it greater bluewater dominance in the Indian Ocean. © Daily Times (Lahore).

India, Malaysia discuss Malacca Straits
New delhi - On a day when 21 navies joined forces to locate and destroy mines off the Malaysian coast, Deputy Prime Minister Najib Razak of that country and Defence Minister Pranab Mukherjee discussed here the issue of sanitising the narrow channel in the region through which a large chunk of world trade passes. (An AP report, quoting Malaysia's Defence Ministry, says that navies from 21 nations, including the United States, Australia and Japan, were taking part in counter-terrorism exercises in the South China Sea on Wednesday.) Mr. Razak, who also holds the Defence portfolio, and Mr. Mukherjee discussed `compulsory pilotage' of the Malacca Straits, with India backing the proposal mooted by Singapore, Malaysia and Indonesia. The narrow channel is an inviting target for terrorists interested in disrupting world trade in general and oil supplies to energy-hungry countries of southeast and east Asia. A single sunk ship has the potential of choking the movement through Malacca Straits. India had outlined its support to the `compulsory pilotage' proposal at the Shangri La security dialogue held in Singapore last week and officials here suggested that Malaysia was generally informed about its expertise in maritime security. India has also offered help to Malaysia in defence modernisation programme. Mr. Razak and his delegation will visit the Indian Space Research Organisation, Hindustan Aeronautics Limited plants and Bharat Electronics units. © 2006 The Hindu (Chennai).

Iraq safer for merchant shipping
SECURITY threat for merchant shipping in and near the ports of Umm Qasr and Basra in Iraq has diminished considerably, Commander Steve Foster of the Royal Navy said in Singapore today. Addressing a select audience at the British High Commission, Foster, who is attached to the UK Maritime Trade Operations unit in Dubai, said no attacks on commercial vessels had been reported this year. “Iraqi naval capabilities have increased,” he noted, adding that there are plans to boost its patrol fleet. Attacks on merchant ships in Somalia have also dropped, though this could be because of the onset of the monsoon, Foster said. Fifteen attacks have been carried out by Somali pirates from January to April this year with most incidents occurring close to the coast. Three ships and crew are still being held, and it is feared that one more crew member has been killed. He exhorted ship crew to use anti-piracy measures on board such as turning on deck lights, automatic alarms and fire hoses. “Many do not take these elementary precautions,” Foster said. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Jakarta 'under-performance' denied
Hutchinson Port Holdings has clarified that it is not aware of the Indonesian government’s plan to buy back shares in Jakarta International Container Terminal. “HPH is committed to the development of JICT into a world-class container handling facility and Indonesia’s national hub port,” a HPH spokesman said in a statement issued to Fairplay. The Hong Kong-headquartered port operator holds a majority stake in JICT at Tanjung Priok port. Yesterday Fairplay Daily News published comments from Indonesian transport minister Hatta Rajasa that the government is considering buying back shares in foreign operated terminals seen to be “under-performing.” The minister had mentioned JICT. The Hutchison spokesman noted that container throughput for its container terminals in Jakarta had increased to 2.3Mteu in 2005 from 1.7Mteu in 2000. This had been possible because of progress in developing new facilities, adding modern equipment, performance enhancement programmes and training to local staff. All this has resulted in new direct calls to Europe, the Middle East and Africa, the spokesman pointed out. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Llyod's should drop Malacca Strait from war-risk list
Kuala Lumpur - London insurer Llyod's should drop the Malacca Strait from its list of war-risk areas after a drop in piracy attacks in one of the world's busiest sea lanes, an ocean crime watchdog said on Thursday. The International Maritime Bureau (IMB) said the strait was no longer a piracy hotspot due to increased patrolling by the three littoral states -- Indonesia, Malaysia and Singapore. "The numbers have dropped very sharply. There are no justification unless Llyod's have some other information that we are not aware of," said Noel Choong, head of the IMB Piracy Reporting Centre based in Kuala Lumpur. He said the three states, which did not report any piracy attacks in Malacca Strait for the first three months of this year, should not become complacent. "The pirates could be lying low because of the patrols. If the patrols stop, the attacks may come back," he told Reuters. "The attacks have fallen due to the Indonesian patrols. In the short-term, it looks positive. In the medium- to long-term, it's unclear how long the patrols will last," Choong said. The Strait was declared vulnerable to "war, strikes, terrorism and related perils" more than a year ago by Lloyd's Market Association's Joint War Committee, an advisory body made up of underwriters from the Lloyd's insurance market. Llyod's had said it wanted to be sure the lull in attacks was long-term, and not a blip in statistics. The move meant container vessels must pay as much as $5,000 extra in insurance premium for passing through the 805-km (500-mile) long Strait. The Malacca Strait links Asia with the Middle East and Europe and carries some 40 percent of the world's trade, including 80 percent of the energy supplies of Japan and China. © 2006 BERNAMA.

Reviewing regional concerns by Bunn Nagara
Conference topics tend to reflect the nature of issues under consideration in society, and ASEAN ISIS' annual Asia-Pacific Roundtable in Kuala Lumpur usually does this commendably. This year's roundtable held last week spanned more than a dozen concerns, which were supposed to be of importance and interest throughout the region. A large majority of them were. Among these was the perceived need to reconcile ASEAN+3 (ASEAN with China, Japan and South Korea) with the East Asia Summit (with Australia, New Zealand and India), which amounts to ASEAN+3+3. Some wanted to include the United States, Russia and the EU as well. Few delegates however asked what "community" should mean for the East Asia Community project of ASEAN+3. Those who think anyone can join presume that it is a formalistic institution created by signatures, rather than the more complex, intuitive and culturally based processes of being an indigenous part of a region. Another topic involved what many saw as the new balance of power in the Asia-Pacific, and whether a "collision" can be prevented. A short answer is that avoidance is better than prevention, and the best way to avoid such tectonic collisions of large power interests is to build a better sense of community in East Asia. Over the longer term, strategic changes are slow and incremental, rather like huge ocean tankers steering their own courses at sea. Navigation should be no problem if there were no surging undercurrents, and if other vessels do not make undue interceptions. Away from the plenaries, a popular concurrent session at the conference centred on Sino-Japan relations. Discussion inevitably latched onto a stubborn Junichiro Koizumi's habitual visits to the controversial Yasukuni Shrine. A Japanese speaker said Japan's next prime minister, due to succeed Koizumi in September, will not be making those shrine visits. This detracted somewhat from the real, larger issue: that Japan's problems with its neighbours dwell on its attitude and position, including history textbooks whitewashing its war aggression, disputed island territories, and Yasukuni visits by several lawmakers. Another topic was an established conference favourite: "the West and the Muslim world," and what the causes of friction and the remedies might be. Like many other topics, it was difficult to squeeze this global theme into 90 hotly contested minutes. A familiar problem here was, again, a microcosmic approach: looking at the two as halves of a dualism, oblivious to other issues determining their relationship. Nationalism, hegemony, xenophobia, religious extremism and political expediency are some of the neglected catalytic issues that often colour and shape how the West and Islam relate to each other. A top expert on Iraq and Afghanistan offered some insights on the latest developments, few of which were positive. Afghan president Hamid Karzai is said to be taking a few years to find a solution, "but he has only three months." After that, the Taliban in some shape or form would stage a comeback. This talk happened just a few days ago, as reports emerged that Waziristan in Pakistan's wild, wild north-west frontier bordering Afghanistan had fallen to the Taliban. Closer to home, ASEAN was presented as a regional organisation facing new challenges, new horizons and new targets. As usual, this serves as a double-edged sword. ASEAN has long survived and thrived as the region's grand modus operandi, living on established modalities and orthodoxies. When newness becomes an issue or even fashionable, how might untried modalities and would-be orthodoxies impact on ASEAN's future without undermining it? The north-eastern corner of Asia was covered by the topic of six-party talks and prospects for a peaceful resolution on the Korean peninsula. Nobody at either the conference or the on-off negotiations will say it is a total loss, especially when it has still not come to that. There was that adolescent elephant-in-the-room that nobody will acknowledge exists, but which everyone seems to stumble over: Pyongyang holding back to bargain for more. If that tactic is good enough for Iran, which seems to work for Teheran, why can't North Korea adopt it too? Then there was the inevitable topic of the Nuclear Non-Proliferation Treaty, or what's left of it. It was hard enough to keep the signatories and the rules before, but now that Washington is indirectly undermining it in West and South Asia, who cares anymore? Apparently only the equivalents of transnational boy scouts are still bothered about "reviving" the NPT. When would-be major world powers stand to benefit from new misalignments, and others are too busy appeasing them to care, the NPT is reduced to a rhetorical tool. Another topic was maritime security in Southeast Asia, with its eternal "pair" of problems in piracy and terrorism. There is often confusion between the two such that they come to be seen as one, but most delegates agreed that they were quite distinct and separate problems. The Straits of Malacca has seen a decline in pirate attacks since 2005, although some coastal waters around Indonesia remain pirate-infested. Thankfully, no instance of maritime terrorism has been encountered apart from the occasional stealthy passage of ammonium nitrate or detonation fuses. In a session on how different ASEAN countries scored in counter-terrorism work, a Philippine analyst gave his country a "D." Malaysia got an "A," while Thailand was on the cusp and improvements were noted in Indonesia. A less generous examiner might not give Indonesia a pass, however, since conviction and sentencing have been problematic while killing someone as big as Azahari Husin might be a blunder. Since Azahari could have yielded useful information, his death might even be seen as evading counter-terrorist efforts. © 2006 Sinchew-i Sdn Bhd.

Straits of Malacca is safe
Johor Baru - The marine police have refuted claims that the Straits of Malacca is a war-risk navigation channel. Its commander, Senior Assistant Commissioner Abdul Rahman Ahmad, said the straits is safe. There were only six robberies and three attempted robberies in the straits between June 2004 and the end of last month, he said. "In 2004, there was only one robbery case. Last year there were three robbery and three attempted robbery cases, and two cases until May this year," he said after a visit to the Southern Region marine police headquarters in Tampoi yesterday. He was refuting a listing by the Joint World Committee of the straits as a war-risk navigation channel. JWC is an advisory body set up by Lloyd’s Market Association and consists of underwriters from the association who play an advisory role on investment risk. It had listed the straits as a war-risk on June 10 last year. Lloyd’s is London’s oldest and one of the world’s most innovative insurance organisations. A war-risk listing means that the insurance premium for vessels passing through the straits will be much higher. Rahman said he did not know the criteria for an area to be declared a war-risk. © 2006 NST Online.

WEEK 4 (18 - 24 June 2006)

Anti-piracy agreement signed by 11 Asian countries
Singapore - A regional agreement to combat piracy in Asian waters - including the busy Strait of Malacca - will take effect in September, Singapore's foreign affairs ministry said Wednesday. Singapore has signed and ratified the agreement with 10 countries, giving it enough signatories for the deal to take effect on Sept. 4, the ministry said in a statement. The ministry said it was "the first regional government-to-government agreement to combat piracy and armed robbery against ships in Asia.'' The pact has been ratified by Cambodia, Japan, Laos, Thailand, the Philippines, Myanmar, South Korea, Vietnam, India and Sri Lanka, while Brunei is in the process of final approval, the statement said. Under the pact, the countries would share information through a center to be based in Singapore. The city-state will also host the first meeting of the governing council toward the end of this year, the statement said. The pirate-infested Strait of Malacca - which lies between the Indonesian island of Sumatra, Malaysia and Singapore - has been the scene of many armed robberies and ruthless attacks. Some nations fear the shipping lane, which is used by more than 50,000 ships a year carrying half the world's oil and a third of its commerce, could be used by terrorists linking up with pirates to blow up an oil tanker or use it as a floating bomb. Indonesia, Malaysia and Singapore have already started joint air and sea patrols, while neighboring Thailand is also getting involved in the policing. Attacks in the strait fell to 12 in 2005 from 38 the previous year, according to a report by the International Maritime Bureau, a maritime watchdog. © 1995-2005 Star Publications (Malaysia) Bhd.

Early success for newly launched maritime agency
Kota Kinabalu - Six foreigners were arrested by Sabah and Labuan Maritime Enforcement Agency officers on Wednesday, just two hours after the agency was officially launched. The agency's acting enforcement chief, Captain Ahmad Puzi Abdul Kahar, said the six foreign fishermen were picked up aboard a local-registered fishing trawler. They did not have valid travel documents and work permits. "They were arrested near Pulau Gaya about 11am today," he told Bernama by telephone. The agency was officially launched two hours earlier in Kota Kinabalu. It is responsible for patrolling the coasts of Sabah, Labuan and northern Sarawak and for protecting Malaysia's Exclusive Economic Zone from trespassing foreign fishermen and pirates. Its task is also to prevent illegal immigrants from entering Malaysia by sea. Currently, the agency has 13 patrol boats and 200 personnel. According to Malaysia Maritime Enforcement Agency director-general, Vice-Admiral Datuk Mohammad Nik, the strength of the agency in Sabah and Labuan would be beefed up from time to time. "The agency will soon have 110 boats and ships. At least 72 of these vessels will be donated by the navy, marine police, Customs and Excise Department and Fisheries Department," he said. He added that the agency would also recruit more than 500 additional personnel soon. © 2006 BERNAMA.

Malaysia orders dive operators to leave Sipadan Island by Tan Cheng Li
Sipadan Island - The order is out, finally: Get off Sipadan. The Government has at last heeded calls for the Sabah island to be emptied of dive resorts as it was getting too crowded for its own good. All six operators are to leave the world-famous dive site by year end. The authorities say the operators can relocate to other islands and their guests can still make day trips to Sipadan. The two oldest dive outfits there, Borneo Divers and Pulau Sipadan Resort, have agreed to move. Both will be the least affected by the eviction notice since they have alternative resorts nearby, in Pulau Mabul and Pulau Kapalai respectively, to cushion the blow. The other four – Sipadan Dive Centre, Syarikat Rami Benar, Borneo Sea Adventures and PB Borneo Safari – have cried foul and collectively sought a court order to quash the state decision. They have also submitted an alternative conservation management proposal to the Government. The reason behind the order is said to be preservation of the island and its marine marvels. But suspicions are rife. Is it really for conservation? Has Sipadan degraded to such an extent? Is it a ploy to get rid of existing operators so that new and politically well-linked groups can move in? Admittedly, the eviction notice issued in April appears harsh. After all, there is no denying that the dive operators have done Sipadan a world of good. Their presence was what stopped the highly destructive blast fishing in the Sulu Sea, raised the island's conservation importance and placed it on the world list of top 10 dive destinations. These brought in tourism revenue and employment opportunities. But they also left indelible marks on the island. As Sipadan's fame grew, everyone tried to grab a slice of the magical island. New lodges sprang up overnight, often haphazardly. The one resort in the late 1980s grew to six by 1995. No one could ask them to leave because no one had the jurisdiction to do so. So back then, operators had free rein of the place. With few rules and management, chalets spread into the forest, wells were dug and sewage was not thoroughly treated. Four other resorts came up in surrounding islands – and all their guests dive at Sipadan. At one point, as many as 300 visitors crowd the once uninhabited island paradise each day. Pilot Michael Chou, who first visited Sipadan in 1991, now prefers to stay at the less-crowded Pulau Mabul. "During one trip, I abandoned plans for night dives after seeing over 50 divers at one spot alone. What can you see except diving fins and bubbles?" Tourism toll. The swelling visitor numbers and ensuing need for supporting facilities led to environmental strain. Sipadan was simply being loved to death. Studies over the years have revealed the effects of relentless dive tourism: some reefs have turned into rubble, loss of vegetation, saltwater seepage into groundwater and pollution of groundwater. Renowned marine photographer Michael Aw who first plunged into the depths of Sipadan in 1985, can attest to the degradation. "What it is now is about 30% of its former glory. In the reefs, there used to be 90% live coral. Currently it is barely 30% . The diversity of species is more or less the same although density has somewhat deteriorated by about half. Aesthetically, the reef looks very tired." Apart from sewerage, pollution and runoffs, Aw says boat traffic and anchoring have caused massive destruction. In fact, alarm bells were sounded as early as 10 years ago. Marine biologist Dr Elizabeth Wood in a 1994 report commissioned by the World Wide Fund for Nature had urged for a resort-free island if Sipadan's biological wealth is to remain intact. The Government had previously treaded cautiously where Sipadan is concerned because of the territorial dispute with Indonesia. And dive operators, fully aware that they were squatters who may be evicted anytime, were unbothered about investing in costly but efficient sewerage systems. Sabah could not gazette the island as a marine reserve as this would be deemed a political move offensive to Indonesia. Now, armed with the International Court of Justice ruling that Sipadan is Malaysia's, it can finally flex its muscle over management of the island. For sure, ridding the island of overnight guests will lessen the pressure – all the structures, rooms, generators and wells are no longer needed. Nesting turtles will get a rest from noise and light disturbance, as will the reef and its inhabitants from crowds. Borneo Divers managing director Clement Lee feels the government decision is just what Sipadan needs. "It is harsh and it is hurting us but the Government is doing the right thing. Yes, the environment on Sipadan has been affected. But it is still curable. So the island should be given time to recuperate." Lee sees a positive side to the eviction order. "Sipadan has received much bad press in recent years, what with the Abu Sayyaf hostage crisis and complaints about the crowds. If the island is left for three to five years to rest, there will be better perception that we are taking positive steps to preserve the environment." As Sipadan's reputation as an unspoilt wildlife haven began to tarnish, dive operators were driven to lighten their footprints on the island. Now, laundry and garbage are carted to the mainland. Some resorts use only biodegradable soaps and detergents. Between 1993 and 1997, they pooled resources to buy turtle nests from traditional collectors so that eggs were left to hatch and not dug up. In 1999, the operators formed a consortium, the Sipadan Borneo Resort Management Sdn Bhd, to pool resort services which either pollute, overlap or cost a lot of money if handled separately. This includes coach transfers between Tawau and Semporna, as well as speedboat transfers to the island but plans to share compressors and power generators fizzled out. Fortunately, land constraints forced a limit on facilities. So there are no sprawling hotels on Sipadan. Instead, divers pay top dollars yet sleep in spartan wooden huts and share showers and toilets. But Sipadan's marine wonders still had them coming in droves. In response to growing criticisms over the ill-effects of tourism, Sabah started restricting overnight visitor numbers gradually, from 100 in 1999 to the present 80. Excess rooms and structures were torn down. Divers boated in from the nearby islands of Mabul and Kapalai also had quotas. To demonstrate their seriousness, the authorities arrested two Japanese divers in October 1999 for not having permits to be on the island. Of course, questions emerged over how the quota of 80 was arrived at. And with each resort allowed only 14 overnight guests when they used to have 30 to 40, operations were barely economically viable. It is not surprising that this sudden zeal to protect the island by controlling the crowds did not last. This quota is now hardly adhered to. Don't vacate all. But shipping everyone out of Sipadan is not the answer. "In many ways, the divers and diving operators based in Sipadan helped deter illegal fishing. So a complete move is a bad idea. At least retain one operator," says Aw. Marine biologist Dr Nicolas Pilcher concurs. "It is ironic that divers who had helped preserve the place have now been asked to leave to preserve it," says the director of the Kota Kinabalu-based Marine Research Foundation. He fears that once the island is vacated, blast fishing may start. It still occurs today, although minimally. Pilcher, who is studying Sipadan's invertebrate biodiversity, believes little will change with the departure of dive operators. "Visitors might not sleep there but they will still stay almost the whole day on the island. Facilities such as toilets and rest areas are still needed but who's going to clean them and clear the refuse? Sabah Parks staff?" A better option to dive operators leaving the island, he believes, is to tighten and better enforce existing controls, such as the visitor quota. Indeed, day visits can be ecologically destructive too if left unregulated. "Hundreds of day trippers can be just as damaging to the marine environment as 100 divers based on the island," cautions Wood, who is coral reef conservation officer of Britain's Marine Conservation Society. "The crucial thing is for the management authority to ensure that they control the situation and don't just replace one problem with another." Dive and tour operators must brief visitors about not touching, collecting and stepping on marine life. There is an urgent need to address this because while previously visitors were mainly foreign divers, fast boats today bring in loads of day trippers. Being mostly poor swimmers or inexperienced snorkellers, they trample on corals. Also, will relocating resorts to other islands be merely shifting Sipadan's woes elsewhere? Mabul, 15 minutes away, is not that much bigger than Sipadan and already has three resorts. All efforts to keep Sipadan pristine would be pointless if silty and polluted run-offs continue to wash into the sea from the mainland. "This problem has not really been addressed but it may well have led to a deterioration in water quality. If so, it will impact reef health. Some dive operators say water visibility has declined," says Wood. Aw points out that the well-being of reef systems in the vicinity contributes to the health of Sipadan but little is done to educate local communities. The Bajau Laut (sea gypsies) settlers in Mabul, for instance, dump everything into the sea. Some believe Sipadan could support a single small, well-run lodge for overnight accommodation. Borneo Diver's Lee says the consortium had submitted a development and management plan a few years ago at the state's request. The plan suggested a consolidation of all operators into one "integrated resort." State authorities did not respond to the plan. This proposal merits consideration. After all, one reason for the current piecemeal development on Sipadan is because there are six operators, all doing their own thing. The dive operators, meanwhile, want more talks with state authorities to clarify the many uncertainties, such as the management of dives and day visits. They also seek state assistance to relocate elsewhere. "Ultimately, we have to sell other dive destinations to take away the impact of diving from Sipadan," says Datuk Douglas Primus, managing director of Sipadan Dive Centre. Both state and federal authorities remain tight-lipped about the future of the island, apart from announcing aims for a World Heritage Site listing. Sipadan is also likely to be designated a marine reserve under Sabah Parks. Its deputy director Paul Basintal says a research and display centre is likely to be set up. He says initial steps will be to restore the island's vegetation, clear all rubbish in the interiors and remove domestic animals. Wood says the Sabah Parks, reef biologists, dive operators and other stakeholders need to work together to produce a conservation management plan that will promote recovery and prevent further damage. She urges for a survey into the effect of vegetation removal and disturbance. A population census should be taken of the coconut crab (Birgus latro)which is under threat in many localities elsewhere in the Indo-Pacific. At present nothing is known of the status of this species at Sipadan. There is also a need to clarify the status of other endangered species such as the rare Nicobar pigeon. Whatever plans the Government has, one good thing is that they will start on a clean slate. If in the past the island's disputed status posed a dilemma, there are no excuses this time for not doing things right since Sipadan is now rightfully Malaysia's. But this island is just a dot in the vast ocean, certainly too tiny to withstand years of wanton exploitation in the name of earning tourist dollars and yen. © The New Straits Times Press (M) Bhd.

Maritime security threat tested by Simon Mossman
More than 100 police officers and government agents have simulated a maritime security threat in waters off Melbourne. Exercise New Addition, which involved Victoria Police, Department of Infrastructure personnel and Port of Melbourne authorities, is the latest in a series of security drills to test Victoria's emergency response capabilities. It follows a major security scare at Geelong last week where a container ship reportedly issued the highest international security alert after a foreign seaman allegedly threatened to blow the vessel up. Victoria's Emergency Services Commissioner Bruce Esplin said today's drill in the Port of Melbourne was not in response to any particular threat. "This is the next phase of what will be a continuing set of exercises to test Victoria's emergency management and security capability," he said. "This is to make sure we are prepared for the sorts of events we hope will never happen. "It also provides Victoria Police to test the capabilities of new resources it obtained for the Commonwealth Games. "The more exercises we do, the stronger our emergency preparedness will be." Filipino national Allan Yordan was last week jailed for six months after stabbing a colleague and attacking another crewman with a hammer aboard the POS Auckland, which was docked at North Shore, Geelong. Yordan then locked himself in the ship's engine room and reportedly told the crew he would ignite fuel, which, union officials said, would have been disastrous. At the time, the bulk carrier was loaded with 33,000 tonnes of the fertiliser urea. Mr Esplin said while today's drill involved the scenario of a breach of Port of Melbourne security and the way authorities responded, the exercise would also benefit the emergency services' response to other events, including storms and natural disasters. "Victoria's capability has been well developed and continuously improved since the 9/11 terrorist attacks," he said. "There has been substantial investment, substantial testing of our capability, a number of reviews have identified where improvements have been made and we continue to look for those opportunities." © The Australian.

Perak approves 69.76 hectares in Sg. Manjung for shipyard operations
Ipoh - The Perak government has approved a land area of 69.76 hectares in Sungai Manjung, Lumut, close to the Tuanku Bainun Bridge for carrying out shipyard operations. Menteri Besar Datuk Seri Tajol Rosli Ghazali said about 24 hectares of the area was approved to Perak Shipbuilding & Engineering Sdn Bhd (PSESB), a subsidiary company of Halim Mazmin Bhd (HMB), a local shipping company. "About 8.0 hectares have been dedicated as buffer zone. Another 37.76 hectares would be handed to the Perak State Development Corporation (PKNP) for the use of other companies keen on carrying out shipbuilding operations in the area in future," he told reporters after chairing the Exco meeting, here Wednesday. He said PSESB would be investing RM350 million on their shipyard project which is also expected to open up 1,500 job opportunities. He said the project which is expected to take off soon could also provide its facilities for the Marine Faculty students of the Institute of Marine Engineering Technology, Universiti Kuala Lumpur in Sitiawan, marine engineering students from the Ungku Omar Polytechnic in Ipoh and also staff of the Royal Malaysian Naval Force in Lumut. HMB's executive chairman, Tan Sri Halim Mohammad was recently reported as saying that the development of a shipyard there would enable shipping industry operators to save millions of ringgit spent on sending vessels overseas for repair. Halim said the area was also chosen for its strategic location, being close to the Straits of Malacca and the centre between Port Klang and Penang. © 2006 BERNAMA.

WEEK 5 (25 - 30 June 2006)

Alam Maritim to raise RM48m from IPO by Doreen Leong
Main Board bound Alam Maritim Resources Bhd hopes to raise RM48 million from the initial public offer to finance its acquisition of new vessels, repayment of bank borrowings and for working capital. It is issuing 29.22 million 50 sen shares at an issue price of RM1.65 each. Of that, 8.12 million shares are offered to the public, 9.74 million shares are for directors and employees and the rest for selected investors. The closing date is scheduled for July 10, 2006. Alam Maritim provides offshore support vessels and services; and offshore facilities construction and installation; and underwater services. It plans to take delivery of one more vessel next month, adding the company’s fleet to 16 vessels, which are mainly used for long term and short term charter. “With some of the proceeds from the listing, the company plans to expand the fleet by another four vessels within the next two years,” the company said. Alam Maritim registered pre-tax profit of RM29.44 million for the financial year ended Dec 31, 2005 on the back of RM137.74 million turnover. © 2006 The Edge Communications Sdn Bhd.

Container shipping faces various threats by Hamisah Hamid
Governments and industries should harness technology in responding to the threats of containers being used as tools for terrorism, illegal activities, drugs and arms smuggling, and transporting weapons of mass destruction. India's Observer Research Foundation senior fellow Dr Vijay Sakhuja said when misused, container shipping has the capacity to disrupt and destroy maritime enterprise. "The container shipping appears to be most vulnerable and has the potential to be the 'Archilles Heel' of maritime trade. "Maritime security is technology-intensive and thus, there is a need to harness technology for a safe system of commerce, and build a comprehensive and credible approach to the security of maritime supply chain," he said at the World Security Forum in Kuala Lumpur yesterday. Last year, sea-based trade grew to 6.76 billion tonnes while world container port traffic reached 303.1 million TEUS (Twenty-foot Equivalent Units) in 2004. Speaking at a session on "Promoting Maritime Security and Port Security in Asia", Vijay said seaports are the weakest link in the container transport chain. He said that terrorist tactics involve attacking ships both in harbour and at sea. He suggested deployment of sensor technologies that provide early detection of saboteurs, submersibles or suicide underwater attacks. Meanwhile, ICC International Maritime Bureau director Captain P. Mukundan said the industry can deal effectively to prevent frauds in international shipping and trading as there is geographical limitation on the various police forces to act against these crimes. "No one is immune from fraudsters, every system of trade is vulnerable," he said. He said any document in trading system can be forged while today's commerce system can be manipulated by those who know how the system works. Mukundan said robust due diligence and knowing the people you are dealing with would help reduce fraud cases. He also said the Malacca Straits has seen lesser piracy attacks. Last year, there were 12 attacks at the Malacca Straits compared with 38 attacks in 2004. At a session on Strengthening Tourism Security in Asia, Atherton Advisory managing director Trevor Atherton said recent developments in Europe has shown that travel agents could be held responsible for what happen at the tourist destinations in the other countries. "Consumer protection in the tourism industry in Europe has spread to developing countries," he said. Atherton said tourism security refers to protection of the life, health, safety and property of tourists and the public and private service providers, employees and host communities involved in their travel, accommodation and activities at the destination. He said Australia has come out with the world's first risk management standard which has been adopted and adapted by many countries in various areas. However, he said, at the moment it is quite difficult to apply the standard to tourism security given tourism's complexity, the security complexity and sensitivity and vulnerability. Australia-based Atherton Advisory is a tourism consultancy specialist in policy and planning. © The New Straits Times Press (Malaysia) Berhad.

Malaysian coastguard takes to the water
MALAYSIA’S new coastguard organisation, the National Maritime Enforcement Agency, has counted its first success in its first day of operations. The agency was launched last November but only started operations last week. Its raison d’être is to contribute to increased security in the Strait of Malacca and the South China Seas separating peninsular Malaysia from the states of Sarawak and Sabah, and to help combat smuggling and illegal immigration. According to the East Malaysia Daily Express, on its first sortie the KM Ramunia discovered smuggled beer and cigarettes on a small passenger ferry and detained three suspects. Small, high-speed passenger launches operate regular services in the area, the report said, and they are rarely inspected at sea. Previously, coastguard-type operations were conducted by different government agencies such as marine police, customs and immigration departments and the navy. The new service is said to have 72 vessels and 200 staff at its disposal, and aims to increase both personnel and fleet numbers by the end of the year. © Lloyd's Register - Fairplay Limited 1999 - 2006.

Nepline to buy tanker for RM184m by Jimmy Yeow
Nepline Bhd plans to acquire a double-hulled Aframax tanker of 80,000 deadweight tonnes (dwt) to 105,000 dwt costing US$50 million (RM184 million) under its fleet renewal exercise. Nepline executive chairman Datuk Nik Mohd Zain Omar said on June 27 that "a single vessel of that size will contribute 60% to our current revenue and earnings" equivalent with four coastal tankers". “We have ready contracts from oil majors and oil traders to ship crude oil from west Asia to China,” he said after the AGM in Kuala Lumpur. Nik Zain said the proposed acquisition of the Aframax tanker, which is expected to be finalised later this year, was pending the loan approvals from financial institutions. Nepline managing director Muhamad Azmi Alwi said it was not a problem for Nepline to re-enter the Aframax market as it had operated such vessels in the past. Last year, its Singapore subsidiary sold the ageing Aframax-size tankers MT Melor for US$11.5 million. In addition it also sold a multi-purpose bulk carrier MV Nepline Teratai for US$2.2 million. He said while the cost of Aframax tanker had doubled, charter rates had improved lately due to the huge demand and also environmental regulation under the International Maritime Organisation (IMO), which would see the phasing out of the single-hull tankers by 2010. Azmi said the company would continue with its fleet renewal programme with the phasing out its four ageing single hull coastal tankers of 3,000 dwt and 7,000 dwt. Last March, it ordered a 7,000 dwt double-hull product oil tanker from China costing US$12 million with an option for another. Delivery of the clean product tanker is expected in August 2007. “We plan to have six to seven double-hull tankers serving the domestic and regional trades eventually,” he said. On its venture into biotechnology, Nik Zain said the company was expected to commercialise its high-powered ultrasound technology to extract non-genetically modified lecithin from palm oil by early next year. He said lecithin, which was used in the food, pharmaceutical, and cosmetic industries have good global prospects. “Most of the lecithin are currently extracted from soy bean and there is big controversy over the use of genetically modified soy bean among consumers," he said. The company is collaborating with Universiti Putra Malaysia and the Malaysian Agricultural Research and Development Institute on research and development on the ultrasound extraction technology. © 2006 The Edge Communications Sdn Bhd.

Petronas posts another record-breaking year by Doreen Leong & Bernard Tong
Petroliam Nasional Bhd (Petronas) posted an all-time record revenue of RM166.9 billion in its year ended March 31, 2006 (FY06), up 22% from RM137.05 billion in the previous year, amid soaring oil prices. The year also saw the national petroleum company turning in a record pre-tax profit of RM70.2 billion, a 20.9% rise from the previous year, while net profit rose 23% to RM43.59 billion. The better results in FY06 were due to higher sales in refined petroleum products and crude oil and condensates, as well as liquefied natural gas and petrochemical products, marginally offset by the strengthening ringgit. Out of the pre-tax profit of RM75 billion inclusive of royalties and export duty minus minority interests' share of subsidiaries' profits, about RM41.7 billion or 76.5% is accrued to the government in the form of taxes, dividend, royalties and export duty. Its president and CEO Tan Sri Hassan Marican said the company had so far given the nation a total of RM335 billion comprising payments to the government and gas subsidies in its 32-year history. "We have so far returned RM287 billion to the government since our 32 years in existence, not bad for a RM10 billion investment," he told reporters at a briefing in Kuala Lumpur on June 29. Fuel subsidy, which amounted to RM15.3 billion in FY06, is borne by the government. The government's subsidy was RM8 billion in FY02, RM5 billion in FY03, RM6.6 billion in FY04 and RM11.9 billion in FY05. Hassan said Petronas continued to supply gas at regulated prices to the nation’s power and industrial sectors resulting in a higher subsidy of RM14.3 billion in FY07, or 93.2% increase. Its total cash and fund investment balance rose to RM93.1 billion from RM75.2 billion, while net cash stood at RM49.2 billion as at March 31, 2006. He said total borrowings were reduced to RM43.9 billion in FY06 from RM52.8 billion in the previous year. On the back of an even stronger balance sheet, he said Petronas had allocated RM27.7 billion for capital expenditure in FY07, up from RM18.5 billion in FY06. A total capex of RM19.2 billion will be used in FY07 to generate domestic economic activities. He said 48% of the FY07 capex would be for exploration and production (E&P) activities, compared with 61.2% in FY06. Logistics and maritime will take up 26.1% of the capex, oil 11%, petrochemicals 4.8%, gas 3.5% and properties 3.8%. "In the last two years, we have been very aggressive in E&P and future focus will be on realising these investments," Hassan said. He said FY06 saw a significant increase in costs as industry players intensified exploration, development and production activities to capitalise on high oil prices. He said oil prices were anticipated to remain firm. US crude oil prices have risen about 18% since the beginning of the year. Refined petroleum products accounted for a third of total revenue or RM55.6 billion, up 25% from the previous year, though sales volume dipped marginally to 208.8 million barrels from 218.5 million barrels. Sales revenue of crude oil and condensates rose 25.4% to RM41 billion on the back higher global crude oil prices, particularly Malaysian crude oil, which averaged between US$61.60 (RM227.14) and US$45 per barrel, while sales volume fell to 184.9 million barrels due to lower production. Hassan said its petrochemical business achieved its best ever operational performance, with sales volume rising 9.4% to seven million tonnes generating a revenue of RM12.7 billion, up 5.8% annually. He said sales of LNG rose 5.4% to 23.6 million tonnes from 22.4 million tonnes in the previous year, translating into a 30.4% increase in LNG revenue for the group to RM28.3 billion. International operations and export revenue grew 22.9% to RM130.2 billion, accounting for 78% of its total revenue. Its manufacturing activities comprising petroleum products, LNG, processed gas and petrochemicals accounted for 58.4% of the group’s revenue. Hassan said Petronas had strengthened its domestic petroleum product market leadership at 40.7% share and retained its leadership in South Africa with 24.3% market share. Hassan said Petronas' total reserves stood at 25.85 billion barrels of oil equivalent while total average production was 1.6 million barrels of oil equivalent per day. © 2006 The Edge Communications Sdn Bhd.

Security cooperation leads to piracy drop in Malacca Strait: Indonesia
Batam, Riau Islands - Regional security cooperation in the piracy-prone Strait of Malacca is making the strategic waterway safer, and should be increased, Indonesia's president said Sunday. The strait -- which lies between the Indonesian island of Sumatra, Malaysia and Singapore -- is used by more than 50,000 ships a year carrying half the world's oil and much of its commerce. President Susilo Bambang Yudhoyono discussed security in the strait at talks with Singaporean Prime Minister Lee Hsien Loong on Batam, which sits at one end of the strait. "Our cooperation to secure the Strait of Malacca with Singapore is showing positive results as is clearly indicated by a significant drop in the number of piracy attacks," Yudhoyono said. "We are committed to enhancing the existing cooperation on maritime security." The United States has expressed fears the lane could be a terrorism target and has offered to help secure it, but Malaysia and Indonesia say there is no need for Washington to be directly involved. Pirate attacks in the strait fell to 12 last year from 38 in 2004, the London-based International Maritime Bureau said in its quarterly report. There have been no attacks in the first three months of 2006, it said. © The Jakarta Post.