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Armed escorts in high demand on sea by Karl Malakunas ASEAN countries appeal for closer security cooperation Asian nations told to unite in piracy fight Aussie guns for hire by Mark Dunn Bangladesh seeks Malaysian funds Bulker aground in the China Sea Discussion on 'hot pursuit' agreements Hounded by China, Japan turns to India by Ranjit Devraj IMO's fire safety rules questioned In Malaysia, Zoellick Discusses Tsunami Aid, Maritime Security Indonesia: Malaysian Navy Moving Away From Karang Unarang Border Lighthouse Indonesia rules out private armed escorts in Malacca Strait Indonesia, S'pore co-effort to boost waterways security, prevent pirate attacks Is joint development a possible solution to maritime dispute between Malaysia and Indonesia? by Yvonne Gomez LCs fraught with risks by Surin Murugiah Malaysia asks Indonesia, RP permission to pursue pirates by Eileen Ng Malaysia perlu kerjasama negara pesisir, antarabangsa Malaysia to upgrade enforcement Malaysia-Indonesia relations surmount negative publicity by Mokhzani Zubir Malaysia, Indonesia agree no show of force in sea row Malaysia, Indonesia discuss maritime boundary issues Malaysian Bulk Carriers heads for another record year by Kang Siew Li Malaysian deputy PM says he accepts Indonesian paper's apology for false report Malaysian premier rejects private armed escorts in Malacca Strait by Marcus Hand MISC draws up energy alliances with Bergesen and SBM MISC leaves dry bulk behind to smash $1bn profit mark MISC will ride out LNG glut MMHE eyes China hulls Petronas 'withdraws' from $2bn Iran LNG project Pirates preying on vessels could instead be terrorists seagoing raiders thrive in areas of lax enforcement by William Ratliff Presence of M'sian and Philippine forces help deter illegal activities Project to protect dugongs Region's ministers to map out anti-piracy strategies Renewal of US-Malaysia Military Pact a Sign of Improving Ties Reserve fuel sample advice Settlement of land reclamation dispute helped by arbitration by S. Ramesh Straits pirates facing joint attack by Eileen Ng Suspected stowaways found dead Tanker market faces three years of famine warns analyst by Sam Chambers Terror threat remains despite tsunami lull: Australian deputy spy chief Thai Navy nabs suspected Aceh rebels Transnational terrorism still the most immediate threat: DPM Tan by Dominique Loh US: Straits are littoral nations’ responsibility by Amy Chew The value of this dull-coloured bird lies in its powerful and musical warble, making it a target for poachers for the caged bird trade by Nisha Sabanayagam The Way Ahead In East Asian Cooperation Yangon to Manila Bay: a new cruising playground by Event Media / Sail World Asia (begin transcript)
(AFP) - While Asian governments struggle to contain the piracy menace on the region’s waters, a controversial and lucrative industry is emerging centred on armed escort boats providing security for commercial vessels. With former elite military soldiers on board and warnings they are prepared to engage in armed conflict, the groups have sparked a fierce debate over whether they are inflaming maritime tensions and if their actions are legal. The International Maritime Organisation, the Federation of Asean Shipowners’ Association and a senior Malaysian security official have all expressed reservations about the security boats in recent weeks. But with companies paying sometimes more than 100,000 US dollars for an armed escort mission, there is undoubtedly demand for extra security from merchant vessels concerned about their vulnerability to pirate attacks. The narrow 960-kilometre-long Malacca Strait, bordered by Malaysia, Singapore and Indonesia, is one of the world’s busiest shipping lanes and a particularly strong magnet for pirate attacks. The Malacca Strait is used by about 50,000 ships a year carrying a third of world trade and half its oil supplies, and the attacks have led to concerns the waterway and adjoining Singapore Strait are also vulnerable to terrorists. Industry sources said there were as many as seven armed escort groups already based in Singapore or in the process of setting up operations in the city-state, with most of them arriving over the past year. One of the highest profile and apparently most successful groups is Background Asia Risk Solutions (BARS), which describes itself on its website as “the leading provider of armed escorts in South East Asia for maritime assets”. “Our teams are manned by experienced former military and police tactical personnel,” the website says. BARS managing director Alex Duperouzel said his organisation was conducting two to three escort missions throughout Asia each month, with it unusual for each operation to cost less than 50,000 dollars. Most of these missions are for ships involved in the oil and gas sector, Duperouzel said. Another organisation that has been operating from Singapore is Malacca Straits Maritime Security, a subsidiary of Glenn Defense Marine, which has been offering escorts featuring armed former British military Gurkha soldiers. A burst of publicity in the Singapore press recently about the armed escorts led to a strong reaction from Malaysia’s internal security director, Othman Talib, who reportedly said any such vessel would be detained if found in Malaysian waters. “They have no power in this country and it is a violation of our territorial sovereignty,” the Bernama news agency quoted Othman as saying late last month. The issue of sovereignty in regards to the Malacca Strait has been extremely sensitive for Malaysia and Indonesia, with the two nations consistently rejecting any offers of foreign help in policing the waterway. Glenn Defense Marine’s head of operations for maritime security, Stephen Weatherford, said that, following Othman’s comments, Malacca Straits Maritime Security had suspended its escort operations while clarifying their legal status with all relevant regional authorities. “We are not out to cause any issues with any government,” Weatherford said, adding he was “hopeful” the company’s escort services would soon be back in operation. BARS has insisted throughout the controversy sparked by Othman’s comments that its operations comply with all laws, and Duperouzel said the firm’s missions were continuing through Malaysian waters and elsewhere. “We sought clarification and our activities continue in an appropriate fashion,” Duperouzel said. Singapore police spokesman Victor Keong also confirmed that various armed escort services had been registered and licensed in the city-state “We do not allow unlicensed private armed guards to operate in Singapore,” Keong said in an e-mail. Aside from the legal issue, critics argue that armed escorts risk inflaming a pirate incident, and could lead to disastrous consequences in the event of a shoot-out between the attackers and security personnel. “What if they are escorting a big oil or chemical tanker? God knows what could happen,” the Federation of Asean Shipowners’ Association’s secretary general, Daniel Tan, said. The International Maritime Organisation, the United Nation’s maritime regulatory body, also opposes any arming of ships to counter piracy. “The carrying and use of firearms for personal protection or protection of a ship is strongly discouraged,” said an IMO circular e-mailed to AFP from the organisation’s London media office in response to queries on the issue. “Carriage of arms on board ships may encourage attackers to carry firearms thereby escalating an already dangerous situation, and any firearms on board may themselves become an attractive target for an attacker.” Duperouzel rejected the criticism, saying crews had every right to protect themselves from pirate. “With respect to the IMO, they are not out on the water, they are not faced with an AK-47 from very close range,” he said. “The criminals who perpetrate these acts have no respect for the IMO and in order to protect the lives of personnel at the end of that barrel, it’s important to take firm steps to prevent loss of life.” Glenn Defense Marine’s Weatherford also insisted his company’s armed vessels were a legitimate tool for vulnerable ships to protect themselves. “We are no different to an armed security service protecting a building on land in any country,” Weatherford said. And despite the concerns surrounding the vessels, the IMO, BARS and Glenn Defense Marine all report that there have not yet been any armed conflicts between the patrol vessels and pirates. © The Peninsula.
Hanoi - Senior officials from the 10-member Association of Southeast Asian Nations (ASEAN) called for further cooperation among the members to safeguard regional peace, stability and development, stating that military cooperation should play an active role in this regard, according to sources from Laos on Friday. At a two-day meeting of the ASEAN Senior Officials Working Group on Security Cooperation, which ended in Laos' capital of Vientiane on Friday, the officials agreed on the need to further strengthen military-to-military cooperation in the region, particularly in the field of maritime security. The delegates said the situation in the South China Sea as a whole was stable and expressed the view that concerned parties should continue to exercise self-restraint and commit to peaceful dialogue on the South China Sea. The delegates touched upon the possibility of holding an ASEAN defense ministers meeting (ADMM), the sources said, noting that they welcomed offers from some ASEAN members to host the 1st ADMM in 2006. During the meeting, the officials noted that, in general, the regional security situation was positive. However, a number of threats remain in the region, including terrorism, separatism and natural disasters. The meeting was attended by delegates from all ASEAN members, namely, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, and the ASEAN Secretariat. © Xinhua News Agency.
Singapore: Fed up with the lack of action against piracy in the Malacca Strait, Asian shipowners want coastal states urgently to implement co-operation agreements and, if they cannot solve the problem, seek international help. “The Asian Shipowners Forum strongly urged the governments of the littoral states to adopt stronger political will and tougher action to stop piracy attacks in the Straits,” the ASF said in a strongly worded statement following its 14th annual meeting in Queensland. “If they are unable to resolve the problem they should seriously consider seeking international assistance.” While there is much talk and many conferences discussing the issue of piracy, concrete action from governments is thin on the ground. Both Malaysian and Indonesian government officials have been emphatic in refusing any suggestion of foreign military presence beyond the three littoral states although they have said that other nations can play a role to help such as capacity building. The 12 member associations of ASF were unanimous in their call for action. “The forum also urged littoral states to put aside jurisdictional concerns and urgently conclude and implement multilateral co-operation agreements,” they said. Last year saw the implementation of much heralded co-ordinated patrols between the navies of Singapore, Malaysia and Indonesia, but these made no obvious impact on the number of piracy incidents in the second half of the year. The co-ordinated patrols do not allow patrol boats from one country to pass into the waters of another in pursuit of pirates, effectively meaning all pirates have to do is speed across the sea border to escape being caught. The first two months of this year saw a marked reduction in pirate attacks in one of the world’s busiest shipping lanes, but this is believed to be a result of the tsunami which devastated the Indonesian province of Aceh, where most of the pirates are thought to be based. From March this year, however, there has been a resurgence in violent incidents involving kidnappings for ransom. “Tankers, tugs and barges have been attacked and their officers and crew kidnapped while others were threatened with guns and knives,” the ASF noted. “Hefty ransom has been sought in exchange for the safety and release of the seafarers.” Concern about the lack of action over piracy goes beyond fears for the seafarers involved to potential environmental disaster and the involvement of international terrorists. “An attack on an oil tanker could result in serious consequences such as grounding or widespread oil spillage, so having adverse effects on the marine environment,” the forum said. Delegates also expressed strong concern over the possibility of international terrorism in the Malacca Strait which could cause tremendous damage to the world economy. They said there was no proved link between piracy and maritime terrorism but warned that the methods used by pirates could be copied by terrorists to launch an attack. Meanwhile, the lack of action has meant that some owners are taking security into their own hands. Offshore towage companies engaged in the transport of rigs and other structures in the Malacca Strait have increasingly turned to the services of private, armed patrols to guarantee the safety of their vessels, a controversial move. Slow moving tugboats towing offshore structures have been the particular target of pirates kidnapping crew for ransom. © Informa Asia Publishing Ltd.
Former Australian soldiers and police are being paid a small fortune to ride shotgun in the Straits of Malacca, protecting against pirates and terrorism threats. Several former Australian Defence Force and police specialists are employed by Background Asia Risk Solutions, a Singapore-based company that provides armed escorts for tankers and oil platforms in the seas north of Australia. The controversial practice of corporations hiring armed escorts for their transport and oil projects has come under fire from the Malaysian Government and some shipping bodies, which claim the armed guards may breach sovereignty and maritime law. The Malacca Straits – between Malaysia and Sumatra – had 37 pirate attacks last year, with ships set on fire and a dozen sailors taken hostage. Deputy Prime Minister John Anderson said last month that a tanker sunk by pirates or terrorists in the channel could cost Australian and international trade tens of millions of dollars and cripple one of the world's busiest shipping routes. Background Asia group managing director Alex Duperouzel, who claimed his company's escort work complied with international law, said he valued his former Australian military and police employees. "The personnel we use depends on many factors, including the route, legal issues and the underlying threat," Mr Duperouzel said. "We have engaged former Australian police and military personnel in the past and intend to in the future." He said several escort patrols were being conducted each month in the straits. "It would be unusual for a mission to cost less than $66,000," he said. "The cost of a mission depends on the complexity of the route and the size of the client convoy." © Sunday Times (© 2005 News Limited, Australia).
BANGLADESH is to use a joint commission meeting with Malaysia to press for funding to develop the country's shipyards and the under-used port of Mongla, according to sources at the Bangladesh shipping ministry. The meeting takes place on 7 June. Malaysia is reported to be keen to invest in the port of Chittagong, but Bangladesh is insisting on help to develop Mongla, which has poor cargo handling infrastructure. Dhaka will also take the opportunity to ask for Malaysian help in providing jobs for Bangladesh Marine Academy cadets. The joint commission was set up in 1992 to stimulate trade between the two countries. At present the balance of trade is heavily in favour of Malaysia, whose exports to Bangladesh exceed $300M compared with Bangladeshi exports to Malaysia of just $17M. © Lloyd's Register - Fairplay Ltd.
A Cyprus-flagged Handymax bulker ran aground on one of the Senkaku Islands in the East China Sea at about midnight on 4 May, according to the Japanese Coast Guard (JCG). The 52,350dwt Thia Chryssoula came ashore on the south-western coast of Uotsuri Island while en route for South Korea from Jakarta in Indonesia carrying a cargo of steel. A spokesman for the JCG’s headquarters in Tokyo confirmed to Fairplay that there were no injuries to any of the 31 crew and that no pollution had occurred, but that the ship remained aground pending efforts to refloat it. A JCG patrol vessel is currently in attendance. The bulker is owned and operated by Efshipping in Greece. The Senkaku Islands, as they are named by Japan, are subject to a territorial dispute between the Japanese, Chinese and Taiwanese governments. © Lloyd's Register - Fairplay Ltd.
Kuala Lumpur - Malaysia is discussing the possibility of "hot pursuit" agreements with Indonesia and the Philippines to allow their navies to pursue pirates into each other's waters. Malaysia's Maritime Enforcement Co-ordinating Centre director First Admiral Abdul Hadi A. Rashid said the matter was at the discussion stage. The three nations had a surveillance and security mechanism in place at the moment, but it did not cover "hot pursuits". Hadi said this in response to a question from a participant at an international symposium on cruising entitled "Yangon to Manila Bay: A New Cruising Play-gro- und". The participant had wanted to know whether "hot pursuit" agreements would be the answer to piracy in the Straits of Malac- ca. Hadi said Malaysia's Coast Guard would be set up soon to enhance security along the waterway. Tourism Minister Datuk Dr Leo Michael Toyad, who had earlier opened the two-day symposium, was also asked whether piracy in the straits would deter the realisation of a "Yangon to Manila Bay cruising playground". "Malaysia, Singapore, Indonesia, Thailand and the Philippines are working on this and enforcement has also been stepped up," he said. "Piracy happens all over the world. It is just that it is not reported locally." Toyad said more commerce should be encouraged in the waters to deter pirates as "the more vessels in the area, the less likely a pirate attack". Toyad's sentiments were echoed by a speaker, International Maritime Bureau Director P. Mukundan, who felt that littoral states would ensure safety in the waterway if the stakes were raised. "If it is a multi-million-dollar industry, they will protect it," he said. He was also asked about the use of mercenaries or private armed escorts for merchant vessels along the straits. "We are not aware of any ship-owning organisation using these services," he said. "Malaysia has made it clear it will not tolerate armed vessels going through its waters for this purpose. "Security personnel on board a ship also need the permission of the ship's flag state to carry arms." Mukundan said law enforcement agencies should be equipped for this task. © NST Online.
New Delhi - Hounded by China over its imperial record during World War II, Japan is rediscovering India as a 'strategic partner' and one which it can also do business with. "Japan and India need each other more than ever in order to grow and prosper," said visiting Japanese Prime Minister Junichiro Koizumi after releasing a forward-looking joint statement with his Indian counterpart Manmohan Singh on Friday. The title of the joint-statement "India-Japan Partnership in the New Asian Era: Strategic Orientation of India-Japan Global Partnership," seemed to say it all. Koizumi's two-day trip that ended on Saturday was on the heels of the Apr. 9-12 visit by China's Prime Minister Wen Jiabao, who used the occasion to declare Beijing's opposition to Japan's candidature for permanent membership in the United Nations Security Council while simultaneously backing India's case. Along with Brazil and Germany, India and Japan are part of the 'G-4' group of countries that aspire permanent membership with veto powers in the Security Council, as part of the proposed United Nations reforms. On Friday, Japan and India agreed to help each other's bids for a place on the U.N. Security Council "I recognize that India is stridently emerging as a global power aided by robust economic growth and that it has become a major country essential for peace, stability and prosperity of Asia and beyond," said Koizumi in an interview to the 'The Hindu' daily. In the joint statement both Tokyo and New Delhi said they "reiterated their support for each other's candidature, based on the firmly shared recognition that Japan and India are legitimate candidates for permanent membership in an expanded Security Council." Leading experts in international affairs indicate that it is easy for Koizumi to heap glowing praises on India because Japan does not carry its heavy colonial baggage in the sub-continent, unlike China and South Korea where Japanese World War II atrocities still evoke bitter memories. "If anything there is an enormous amount of goodwill for Japan in India although this is only now beginning to be appreciated by policy makers in Tokyo," Prof. Matin Zuberi, a leading commentator on international studies and author of several books on disarmament, told IPS in an interview. "Koizumi and his team must be finding their trip to India an enormous relief especially as he is under pressure at home to do something about popular displays of anger in China over attempts by Japan to whitewash its military record, in school textbooks, the subject of its 1931-45 occupation of China," said Zuberi. A plus point in exonerating the Japanese for their past atrocities is that most Indians believe that Japan's World War II imperialism helped dislodge more than two centuries of British colonial rule in India. Venerated alongside Mahatma Gandhi, the 'apostle of non-violence', is Subhash Chandra Bose, founder of the Indian National Army, composed of irregulars and deserters from the British Indian Army who fought on the side of the Japanese Imperial Army during World War II. But it took more than half-a-century after the end of the war and unending opprobrium from countries in its immediate backyard for Japan to rediscover India as a strategic partner. Tokyo soon began to make overtures to break the trade deadlock between the two nations, which seemed stagnated at four billion U.S. dollars for the past six years. During Premier Wen's visit, much was made of the fact that India's annual trade with China has been growing rapidly over the last decade. It now stands at 14 billion dollars in spite of the fact that the two countries have serious unresolved territorial disputes along their long and rugged Himalayan border. To be fair to Tokyo, one of the reasons for the stagnation in Indo-Japanese economic ties has been Japan's discomfort at nuclear tests carried out by India in 1988. Also, India's broad pronouncement that it was in the nuclear league, while thumbing its nose at the Nuclear Non- Proliferation Treaty and the Comprehensive Nuclear Test Ban Treaty, made Tokyo view New Delhi with strong suspicion. Japan was among the few countries that joined the United States in imposing sanctions against India for carrying out the nuclear tests. To the delight of both sides, that unpleasant episode seems to have been put behind and Koizumi in his interview with 'The Hindu' said that after all, Japan and India did 'share the ultimate goal of eliminating all nuclear weapons'. According to Zuberi, it is highly probable that Japan, a long-term U.S. ally is cooperating with Washington in a new initiative to build closer ties with India in response to China's growing influence. "Japan's new partnership with India may have been prompted by Washington's policy of containing China's growing clout as an economic and strategic power by bolstering up India as a counter," Zuberi pointed out. Friday's joint-statement provided for annual prime minister-level meetings between the two countries and regular ministerial exchanges with the emphasis on improving energy security and increasing investment in Asian energy markets. Japan would now provide assistance to large-scale infrastructure projects in India including a high-speed, computerised freight train that would connect port cities of Mumbai on the west coast with Kolkata in the Bay of Bengal. The two countries also agreed on a maritime security accord where Japan would help India modernize its navy in return for protection of its merchant vessels plying through the Straits of Malacca. Jasjit Singh, director of the independent Centre for Strategic and International Studies, observed that nearly all of Japan's petroleum imports passed through the Indian Ocean and both countries had a stake in ensuring that sea-lanes in the region stayed open, safe and secure. © 2005 IPS-Inter Press Service.
The IMO needs to re-examine its standards for preventing and controlling fires on board ships, says the Transportation Safety Board of Canada. The TSB wants the IMO and the International Association of Classification Societies to review the requirements for structural fire protection and fire extinguishing systems to ensure that the fire risks associated with compartments containing high levels of electrical energy are adequately assessed. In its final report on a fire onboard the cruise ship Statendam near Vancouver in August 2002, the TSB says there are “deficiencies in the requirements for providing fire-retardant insulation on the deck between the engine control room and the main switchboard room. The lack of insulation allowed cables above the engine control room deck to ignite and start secondary fires.” The fire started when the main circuit breaker for one of the diesel generators failed. This started fires in the main switchboard room and the adjacent engine control room. The crew successfully extinguished both fires, and the vessel returned to Vancouver under tow. The TSB said it was also concerned that neither the IMO nor the international shipping community “have specified internationally applicable minimum standards of competency or knowledge for ship's electrical officers.” © Lloyd's Register - Fairplay Ltd.
Kuala Lumpur is fifth stop on deputy secretary's tour of Southeast Asia. Cooperation between the United States and Malaysia was excellent in the aftermath of the catastrophic December 2004 Indian Ocean tsunami, and the two countries worked closely to deliver humanitarian assistance to the stricken region, according to Robert Zoellick, deputy secretary of state. Zoellick was in Malaysia on May 9, his fifth stop in a six-nation swing through Southeast Asia. He answered reporters' questions at the residence of the U.S. ambassador in the capital city, Kuala Lumpur. "[T]he ties between the United States and Malaysia bore very important fruit," during the crisis, Zoellick said. "President George W. Bushe were able to work closely with Malaysian counterparts to bring food and water and supplies into Aceh [province in Indonesia] 24 hours a day …. And in some ways it represents a good aspect of how Malaysia is a very close and multi-faceted partner of the United States." Zoellick said a primary purpose of his trip was to follow up on the aftermath of the tsunami disaster and to "see what we can try to do to … make the pivot from humanitarian aid to reconstruction support." The deputy secretary said he met with Malaysian Prime Minister Abdullah Ahmad Badawi, Deputy Prime Minister Najib Abdul Razak, and Foreign Minister Syed Hamid Albar. The officials discussed a wide range of economic and security topics, including maritime security issues in the Strait of Malacca. The strait, bordered by Malaysia, Indonesia, and Singapore, is one of the busiest shipping lanes in the world. It has been under assault from a rash of pirate attacks. "Obviously, we respect the role of the littoral states as the player with the responsibility for maritime security," Zoellick said. "And so what we were exploring was ways that the United States and others might be able to help develop some of the capacity to be able to gain information in real time so that the countries in the littoral states can act against issues of piracy or crime or other questions." While in Malaysia, Zoellick witnessed the signing of a renewed military-to-military cooperation agreement. He discussed potential cooperation on a port security agreement that would allow the United States to assist in monitoring shipments for radiation. In order to get a better understanding of the role of Islam in Malaysian society, Zoellick also met with a group of university scholars and representatives of nongovernmental organizations. The deputy secretary said he was particularly interested in learning more about Islam hadhari, a development approach that emphasizes consistency with the tenets of Islam. "I … had a chance to talk a little about this with the Prime Minister because we think the Malaysian experience is one that is very important -- the tolerance, the moderate Muslim majority country, the development of democracy, the rule of law here," Zoellick said. The deputy secretary will finish his nine-day trip with a stop in Singapore May 10. [Distributed by the Bureau of International Information Programs, U.S. Department of State]
Click here to read transcript of the press conference.
Surabaya (ANTARA News) -- Negotiations between Indonesian and Malaysia in Bali on 22-23 March 2005 yielded no meaningful changes as data is still being gathered, however, Malaysian navy ships have begun to steer clear of the Karang Unarang lighthouse. Commander of the Sea Combat Group of the Eastern Armada, Admiral Soeparno was quoted by navy spokesperson Lieutenant Colonel Guntur Wahyudi in Surabaya on Monday as saying that each day there two Malaysian navy ships were in the area. In addition, there's one water police boat, however their ships are now positioned far from where the Karang Unarang lighthouse is being constructed," he said. Nevertheless, he said, the Indonesian navy was holding routine security patrols for the workers constructing the Karang Unarang lighthouse and those aboard the Lius Indah barge. "So far, the foundations of the lighthouse are 100 percent finished and we plan to erect the tower on 2 April 2005. Erecting the tower will take around two weeks, so by the third week of April it will be operational," he said. He explained that after the tower is erected, the department of transport would be tasked with its supervision, however the navy wouldn't simply release responsibility for its security. "The navy will still conduct patrols. The withdrawal of troops and ships will depend on situational developments and await further negotiations between Indonesia and Malaysia," he said. © Antara.
Indonesia rejected a proposal to allow ships passing through the pirate-infested Malacca Strait to hire private armed escort services, said Marty Natalegawa, a foreign ministry spokesman. "Indonesia won't allow any private party to provide their own armed security in the Malacca Strait," Natalegawa said today in Jakarta. "Responsibility for maintaining security should remain in the hands of Indonesia, Malaysia and Singapore." The Malacca Strait, one of the world's busiest shipping lanes, is used by more than 50,000 vessels a year, carrying a third of world trade and half its oil supplies. Pirates robbed the safe of a Japanese-registered bulk carrier in the strait, Agence France-Presse reported on April 1, citing an official from the International Maritime Bureau. It was the fourth pirate attack on shipping in the strait in about a month, AFP reported. The Piracy Reporting Centre was set up 13 years ago and is financed by voluntary contributions from ship owners and insurers. Pirate attacks on ships worldwide fell 26 percent last year to 325 as incidents in Bangladesh and Indonesia dropped, the IMB said. Crew deaths rose by 42 percent. Malaysia's government plans to detain ships with private armed escort services, Agence France-Presse reported April 27. Some companies including Singapore-based Background Asia Risk Solutions, provide armor-plated vessel to escort boats between Sri Lanka and the South China Sea, charging about $50,000 per mission, AFP said. © 2005 Bloomberg L.P.
Jakarta — Indonesia and Singapore are set to launch a surveillance radar system in a bid to boost waterways security in the Singapore Strait, Indonesian navy spokesman Colonel Sumantri told AFP. The system will start monitoring the narrow stretch of water from today. "It aims to provide better security monitoring — including the surveillance of potential pirate attacks — in the Singapore Strait," said Col Sumantri. A major shipping route of South-east Asia, the waterway is located between Indonesia's Riau archipelago and Singapore, and links the Malacca Strait to the South China Sea. The Malacca Strait is one of the busiest shipping lanes in the world, funnelling 50,000 vessels a year between the biggest economies of the West and the East. Plans for the system were mooted when Indonesia's military chief General Endriartono Sutarto met with Singaporean counterpart Lieutenant-General Ng Yat Chun last month. Col Sumantri could not say if the radar system would be sufficient enough to also oversee security in the Malacca Strait. Since February 28, at least eight pirate attacks on ships in the Malacca Strait and Singapore Strait have been recorded by the International Maritime Bureau's Piracy Reporting Centre in Malaysia. © 2005 MediaCorp Press Ltd.
A build-up of defence forces in the Sulawesi Sea continues to threaten relations between Malaysia and Indonesia. Both countries claim possession of an oil-rich area off the east coast of Sabah and Kalimantan. Indonesian President Susilo Bambang Yudhoyono is reported to have instructed his military to make its presence felt there. What message does each side send to the other by deploying defence forces to the disputed area? A question Yvonne Gomez put to maritime defence analyst Mak Joon Nam from Singapore’s Institute of Southeast Asian Studies.
MJN: Basically that’s what we call establishing a presence. If you don’t establish a presence in terms of sovereignty claims, it’s a de facto recognition of the other side’s claim of sovereignty. That’s why whenever somebody makes a claim and you dispute it, you have to send in a counter-claim, or else you send in a diplomatic note saying that you don’t recognize that claim. So presence is so very important in establishing your claim.
Q: Indonesia has said that it had the right to expel Malaysian warships in the disputed area. If tensions continue to escalate, what is the danger of a confrontation between forces from both countries to protect what each believes to be its territorial integrity?
MJN: I don’t think it’s a thing called “territorial integrity? If you look at the map, at the most you can claim that it’s part of their Exclusive Economic Zone because their territorial waters can only extend 12 nautical miles from the baseline at low tide, and that is about 200km out by anybody’s calculation. So it’s part of the Exclusive Economic Zone and you have sovereign rights over the resources in your Exclusive Economic Zone you don’t have sovereignty over your Exclusive Economic Zone. So you have to make that distinction very, very clear. I think for these two countries to go to war over resources…well…given the history and background of Malaysia and Indonesia, I think that is fairly unlikely. In fact, when I was with MIMA (Malaysian Institute of Maritime Affairs) tensions at that time were building over Sipadan and Ligitan, and in point of fact, the navies of the two countries came together to work out what we called the Prevention of Incidences at Sea Agreement, which they actually signed and initialed two years ago. They know exactly what to do and there is this mechanism to allow them to exchange information. They have the communication channels established already. The bottomline is that I don’t think things will escalate beyond control.
Q: Speaking of politicians, Indonesian President Susilo Bambang Yudhoyono is currently on a visit to a province near the disputed area. What does his physical involvement in the issue say about seriousness with which Indonesia views this dispute?
MJN: I think you have to view this current dispute against the background of the loss of Sipadan and Ligitan by Indonesia to Malaysia. There was a lot of backlash and pressure built up from the elite. In fact they accused the then-President of selling out Indonesia. So the current president will have to be very careful about not losing territorial integrity, or be seen to be backing down on territorial integrity. The people in Indonesia, and also in Malaysia, don’t know the difference between Exclusive Economic Zone and territorial seas so I don’t blame them for it. But if you look at the background, there was a lot of pressure for Indonesia not to give up any more sea territories.
Q: Speaking of the agreement you mentioned earlier, Malaysian Prime Minister Abdullah Ahmad Badawi has called for talks to be held with Indonesia to resolve the dispute “to avoid untoward incidences? In maritime territorial disputes such as this, what is best way to reach a resolution?
MJN: It’s very difficult because if you look at the claims, it depends on how you find your baseline and turning points, and which islands you use for another baseline. So this is a fairly gray area. This is really a deep water part of the sea, somewhere between 500m and 4km deep. So technology at that time was such that people could only explore and exploit up to maybe 500m or 1km. Current technology is such that people can exploit up to 2km, so this is why the area has now become so important, and the quality of oil there is apparently quite high according to Shell. How do you resolve the issue? It’s extremely difficult and most literature I’ve come across, in the end, argues for putting forth a joint development area. This is very much a bilateral issue and I don’t think Indonesia, after the experience of Sipadan and Ligitan, will want to go for arbitration again. Ultimately I think a joint development agreement could be worked out. © 2005 MCN International Pte Ltd.
The intricacies of Letters of Credit (LCs) have caused exporters losses as a majority of them lack thorough knowledge on the workings of these documents, says Billy Foong, director of Tradelinks Resources Sdn Bhd, a professional training company specialising in LCs. “Even maritime lawyers find difficulty comprehending the implications of many terms in trade-related documents, and LCs are all about movements of goods, documents and money,” he tells FinancialDaily. International trade is often associated with exchange of goods and services in return for money, but the detailed mechanism of payment methods as well as the intricate movement of goods, documents, and money in this sector can be confusing. “People involved in export and import, freight forwarding, shipping agents, lawyers and bankers are among those who need to understand LCs. “Almost 90% of all manufacturers and traders use LCs, which they think is a safe method of payment in international trade. The truth is LCs are fraught with risks,” says Foong. “In the mechanism of LCs, there is a principle called the Doctrine of Strict Compliance where if the documents do not comply with the LCs, banks may refuse payment.” Citing an example, the former banker says a major palm oil exporter in Malaysia lost almost RM20 million due to three mistakes in its documentation. “The LC was issued by a bank in Russia and confirmed by a bank in New York. The confirming bank had identified the mistakes and informed the exporter to rectify them, which was not done. “Subsequently payment was rejected. One of the errors was a misspelled name of a city. One bad transaction like this can wipe off profits accumulated over many years.” He adds that exporters are also lax in the preparation of export documentation, and many do not know how to check their documentation. “Most exporters do not realise that their strategic partners in international trade, meaning the freight forwarders and shipping agents, unwittingly plant time bombs in their export documentation. “About 70% of discrepancies in export documents arise from bills of lading issued by freight forwarders and shipping agents,” Foong says. He and his wife Veronica Kok set up Tradelinks Resources in 1994 to provide practical training in international trade; mind dynamics, sales and customer services as well as on supervisory and management skills. “We are the only full-time professional training company in Malaysia offering courses on LCs. All our course leaders are full time, much sought-after professional trainers with many years of practical experience in their respective areas of specialisation.” He said a majority of the participants for the courses at Tradelinks were employees of corporate clients. © The Edge Communications Sdn Bhd.
Kuala Lumpur - Malaysia is in talks with Indonesia and the Philippines to allow their naval forces to pursue pirates in each other’s waters in what could be a bold new effort to eliminate the scourge, a senior security official said Thursday. Separately, an antipiracy watchdog rejected a proposal to use private armed guards to escort commercial vehicles in the Malacca Strait, the world’s busiest and most pirate-infested waterway, saying it could be counterproductive. Abdul Hadi Rashid, director of the Maritime Enforcement Coordinating Center, said Malaysia has a mechanism in place with Indonesia and the Philippines on coastal surveillance and security, but there was no agreement to allow the pursuit of pirates in each other’s territorial waters. “This is still at a discussion level,” he told a symposium on regional cruising here, while addressing concerns about maritime safety. He did not elaborate. Allowing naval and marine police of the countries into their waters would be an unprecedented step for the three Southeast Asian countries who zealously guard their territorial integrity. A Sulawesi Sea territorial dispute between Malaysia and Indonesia led to souring of relations between them recently. Abdul Hadi said Malaysia has put up radar systems along the Malacca Strait and would establish a new coast guard enforcement agency soon to step up security in the shipping lane, which carries half the world’s oil and a third of its commerce. Addressing the same conference, Pottengal Mukundan, director of the International Maritime Bureau’s (IMB) piracy center, urged coastal states to consider placing a liaison officer on each other’s navy vessels so that they could obtain immediate approval to chase pirates crossing into another country’s waters. “Pirates operate often along territorial borders because they know there is no right of pursue across territorial waters. We want to see some mechanism within the region to improve bilateral cooperation,” he said. Mukundan warned, however, the use of mercenaries and private guards to safeguard merchant vessels could create new risks, such as the use of force in the name of self-defense, emergency medical assistance and the vetting of the armed guards. “There are a lot of questions which have to be properly answered and I think the coastal states are quite rightly concerned,” he told reporters later. “Vulnerable ships, in particular, crossing the Strait should be escorted by law-enforcement agencies, not private entities.” Mukundan singled out Indonesia as the weak link in the region due to its lack of resources. Last year, the London-based IMB recorded 37 pirate attacks in the narrow, 800-kilometer (500-mile) shipping lane despite coordinated patrols by Malaysia, Singapore and Indonesia. © The Manila Times.
Malaysia perlu meneruskan kerjasama dengan negara-negara pesisir Selat Melaka dan masyarakat antarabangsa dalam usaha menjamin keselamatan kawasan perairan itu bagi memelihara kepentingan maritim dan strategik negara. Felow Institut Maritim Malaysia (MIMA), Nazry Khalid bagaimanapun menegaskan, sikap terbuka dan kerjasama dengan negara pesisir Selat Melaka dan masyarakat antarabangsa perlu dijalinkan selagi integriti sebagai sebuah negara berdaulat tidak diganggu-gugat. "Isu mengenai kedaulatan, keganasan maritim, ancaman keselamatan bukan konvensional, pemuliharaan persekitaran marin dan tuntutan wilayah maritim boleh menggugat kepentingan strategik negara dari segi keselamatan dan ekonomi di Selat Melaka. "Sebarang ancaman ke atas keselamatan dari segi keganasan maritim, aktiviti lanun, penyeludupan dadah dan senjata akan memberi kesan buruk kepada negara-negara pesisir Selat Melaka dan masyarakat antarabangsa," katanya. Beliau berkata demikian ketika membentangkan kertas kerja Signifikan Keselamatan Selat Melaka dan Kawasan Maritim Terhadap Kepentingan Ekonomi dan Strategik Malaysia di Persidangan Kebangsaan Pertahanan Strategik dan Keselamatan Serantau (Pusaka 2005) di Pusat Konvensyen Antarabangsa Putrajaya di sini hari ini. Persidangan tiga hari sehingga Khamis ini dihadiri kira-kira 500 orang peserta dianjurkan oleh Strategic Resources serta Pusat Dasar Teknologi dan Kajian Antarabangsa (Centepis) Universiti Teknologi Malaysia dan Pusat Penyelidikan dan Pembangunan Akademik, Kolej Universiti Islam Antarabangsa (KUIS). Sehubungan itu katanya, Malaysia perlu melaksanakan pendekatan komprehensif bagi memelihara dan menjamin keselamatan Selat Melaka. Nazry memberitahu, dalam orde baru dunia pasca 11 September 2001 dan dari sudut globalisasi, keselamatan Selat Melaka merupakan isu strategik yang sangat penting bukan sahaja kepada Malaysia tetapi juga masyarakat antarabangsa. Katanya, kuasa-kuasa besar ekonomi dunia seperti China, Jepun dan Amerika Syarikat (AS) yang bergantung kepada Selat Melaka sebagai laluan pelayaran antarabangsa mempunyai kepentingan kritikal terhadap keselamatan di perairan tersebut. "AS, Jepun dan China akan melaksanakan apa sahaja tindakan bagi memastikan kepentingan mereka tidak tergugat. Oleh itu adalah penting Malaysia dan negara-negara pesisir Selat Melaka memastikan bahawa perairan itu sentiasa selamat dari sebarang ancaman baik keganasan maritim ataupun masalah lanun," katanya. Nazry memberitahu, Malaysia dan negara-negara pesisir Selat Melaka hendaklah menggembleng dan berkongsi sumber kewangan, kepakaran, maklumat, pengalaman dan teknologi bagi menjaga keselamatan perairan tersebut. Tegasnya, kegagalan untuk memastikan keselamatan di Selat Melaka akan melihat campur tangan kuasa-kuasa besar ekonomi seperti AS, Jepun dan China untuk memastikan ia selamat bagi laluan kapal dagang. © UTUSAN MELAYU (M) BHD.
MALAYSIA’S new coastguard and search and rescue body is expected to be set up in November this year. The country’s Maritime Law Enforcement Organisation will initially draw about 4,000 personnel and at least five patrol vessels from navy, customs and fisheries authorities and the air force. First Admiral Abdul Hadi A Rashid, director of the Maritime Enforcement Co-ordination Centre, told Fairplay the new maritime enforcement unit will take over security patrols in the Malacca Straits. He indicated that talks with Indonesia and Singapore were addressing the issue of ‘hot pursuit’ of pirates into each other’s territorial waters, thereby enhancing the chances of catching them. At present, the three countries’ security patrols are prohibited from crossing national boundaries. It is not known when this change of policy might be achieved. © Lloyd's Register - Fairplay Ltd.
The relationship between the countries remain strong through website hacking, warships brushing each other in contested waters and a dispute over the Ambalat offshore oil block in the Sulawesi Sea, writes Mokhzani Zubir. For the past two months, the bilateral relationship between Malaysia and Indonesia has been quite tense due to the Ambalat dispute. The Indonesian press gave especially wide publicity to the issue, much of it with negative overtones concerning Malaysia. The negative publicity was cited by some factions in Malaysia as evidence that the Indonesian press was trying to discredit and humiliate Malaysia and thus force Malaysia into relinquishing its claim in the Sulawesi Sea. Indeed, the Indonesian media appeared to be functioning as a 'force multiplier' during the diplomatic spat and became the front line in Indonesia’s psychological warfare against Malaysia. Meanwhile the Malaysian press was relatively muted regarding the incident. Since Petronas, the Malaysian oil giant, publicly announced the award of a Sulawesi Sea exploration contract to Shell, the Indonesian media has been very active in reporting developments -- from the official Indonesian government protest to the mobilization of warships and fighter jets in the contested area. The wide coverage made the Ambalat dispute a national issue for Indonesia and prompted public outrage. This was evidenced by demonstrations, protests and a mob in front of the Malaysian Embassy in Jakarta and its Consulate in Pekanbaru. Incidents of hacking of government websites occurred in both Indonesia and Malaysia in early March 2005, indicating that the maritime dispute had breached the cyberspace boundaries of both countries. Many high profile websites in both countries were hacked and defaced with rude messages by Indonesian and Malaysian hacktivists. However, it is difficult to determine who started the hacking rampage; the general Malaysian and Indonesian public knew of the incidents only when the media reported it and the reports came only after the hacktivist war had lost momentum. Realizing that negative and aggressive reporting by the Indonesian press could result in uneasy bilateral relations, both Malaysian Prime Minister Abdullah Ahmad Badawi and Indonesian President Susilo Bambang Yudhuyono expressed their determination to solve the dispute peacefully and tried their best to calm tensions. A joint statement issued by Indonesia's Foreign Minister Hassan Wirayuda and his Malaysian counterpart Syed Hamid Albar said the two sides would "take necessary steps" to ease the tension. According to Hassan, the Susilo and Badawi had decided to use peaceful means to resolve the maritime border issue in the Sulawesi Sea. Tension in the area receded. But it suddenly rose again on April 8 when the Indonesian warship KRI Tedong Naga and the Malaysian warship KD Rencong brushed each other while patrolling the disputed maritime area, leaving both vessels with minor damage. Both countries lodged diplomatic protests over the incident. The Indonesian media gave the incident wide coverage while the Malaysian media was once again muted. One Indonesian newspaper, Kompas, was accused of false reporting by the Malaysian government. Malaysia’s Deputy Prime Minister Najib Razak was reported to be considering taking legal action against Kompas for publishing what he said was a false report that said he had apologized to Jakarta over the incident. If the March cyber war was linked to negative media coverage of the dispute, then the hacking should have resumed after this latest incident. But there have been no reports of websites in Malaysia and Indonesia being hacked or defaced. The cyber frontier was not re-breached despite the seriousness of the warship brush. Furthermore, there were no demonstrations in Jakarta or anywhere in Indonesia. The calm situation in both the real and cyber world is an indication that the situation has been well-handled by both governments. Animosity is down due to repeated pledges by both countries’ highest leaders to settle the dispute amicably through diplomatic engagement. This feeling is not only shared by Indonesian and Malaysian politicians and military leaders but also the general population of both countries. Malaysian Foreign Minister Syed Hamid Albar reiterated on April 21 that Malaysia and Indonesia have a good relationship despite the negative publicity given to Malaysia by the Indonesian press over the Ambalat issue. The minister hoped "that the Indonesian Press would realize that the relationship is deep and well entrenched and could not be undermined by such negative publicity." He stressed that the dispute will be resolved peacefully through dialogue. An indication that the relationship has surmounted the Ambalat quarrel was the official visit earlier this month by Indonesian Vice President Jusuf Kalla to Malaysia at the invitation of Malaysia’s Deputy Prime Minister Najib Razak. In a joint press statement, both leaders reiterated that confrontation over maritime boundaries must be avoided and the dispute will be resolved through negotiations. They observed that the Malaysia-Indonesia relationship is special and intimate and surpasses that of either countries’ bilateral relationships with other countries. Thus it must be preserved. On May 4, two days before the visit, Kompas made an official apology to Malaysia’s Deputy Prime Minister for its inaccurate report. For the ordinary Indonesian, Malaysia is a little brother and a place to find a good job that pays better than those back home. The relationship between Malaysia and Indonesia during the height of the dispute was as strong as ever, despite the diplomatic protests of both countries. Nonetheless, there is a lesson in this incident for Malaysia. Not all such incidents may end so happily. In a future similar situation, Malaysia should be more organized and predetermined to neutralize or counter any negative publicity with positive statements that are filled with the hope of resolving the issue through diplomacy and play down any possibility of conflict. To do so will require patience, will and coordination, understanding, and even synchronization between Malaysian politicians and the Malaysian media. It will be better if only one view is released and consistently repeated by politicians, military leaders and senior government officers. This will also show that the entire machinery of the Malaysian government is united, strong and ready to resolve the issue. This will give Malaysia a psychological edge during the negotiation process and also build confidence and a winning feeling in the general public. [Mokhzani bin Zubir is a researcher at the Centre for Maritime Security and Diplomacy, at the Maritime Institute of Malaysia (MIMA). He has a Masters in Defense and Strategic Studies from the University of Malaya and joined the MIMA in 2004. His specific research interests are cyber warfare and bilateral relationships between Malaysia and its neighbors. Many of his articles have been published in local magazines. The views expressed above are those of the author and are not necessarily those of AsiaMedia or the UCLA Asia Institute.]
Putrajaya, Malaysia (Reuters) - Malaysia and Indonesia have agreed to refrain from staging shows of force in the South Sulawesi Sea, where the neighbours are in dispute over maritime boundaries, Malaysia’s deputy prime minister said on Friday. Najib Razak told a joint news conference with visiting Indonesian Vice-President Jusuf Kalla that the two countries had agreed their navies would not flex their muscles over the issue. “There’s no need to withdraw the vessels completely from that area... as long as there is no show of strength, just normal presence,” he added. “That should not pose problems because we are used to having joint operations.” The leaders were describing talks they had just held on the dispute. Indonesia sent warships and fighter jets to the area in March, after the dispute flared about overlapping maritime concessions in an area believed to be rich in oil and gas. Both countries have since agreed to resolve matters peacefully. An incident on April 8 involving two ships off Indonesia’s East Kalimantan province, part of the island of Borneo, raised the tension. Kalla said the two countries’ navies would continue to patrol the area. “The armed forces of Malaysia and Indonesia have agreed to undertake friendly patrols,” he added. “There is no need to raise conflict.” Najib, who is also defence minister, added in light-hearted mood, “If we pass each other, we wave our hands.” The disputed waters lie close to the islands of Sipadan and Ligitan, which Indonesia lost to Malaysia in a legal battle in the International Court of Justice in December 2002. The neighbours rely heavily on oil and gas for revenues and each has awarded exploration contracts in the disputed area. Last year, Indonesia awarded a contract to US-based oil firm Unocal Corp., while Malaysia recently granted exploration rights to Royal Dutch/Shell. Exploration work has yet to begin. The tone of the talks was cordial, officials said. “My message is all problems should be resolved peacefully through dialogue for mutual interest,” Kalla told reporters when asked what message he brought from Indonesian President Susilo Bambang Yudhoyono. Najib added: “The message is, ’Make love, not war’.” Briefing Malaysian journalists later, Najib was asked about his expectations from talks between the two countries’ technical teams, which are to meet in Malaysia this month to discuss ways to resolve the dispute. “The desire to find a negotiated settlement is very evident. It may not be something that can be achieved overnight,” he replied. “We are dealing with a maritime boundary, which is a very complex issue. The most important thing is there’s a political will. The main thing is to narrow the differences. From then on, we hope the two leaders will decide what to do.” Asked about the possibility of third-party arbitration, he said, “I don’t want to speculate. We take it one step at a time.” © 2004 Khaleej Times.
Kuala Lumpur - Malaysia and Indonesia ended their maritime boundary meeting Thursday (26/5/2005), which could pave way foran end of their maritime boundary dispute, a joint statement said Friday. The statement released here by the technical teams on the maritime boundaries delimitation between Malaysia an Indonesia said that the meeting, held in Langkawi, northern Malaysia, was conducted in a frank and cordial atmosphere. "During the two-day meeting, both sides continued with the articulation of their basic positions on specific issues pertaining to the maritime delimitation between the two countries with focus on Sulawesi Sea on basis of international laws, especially UNCLOS (United Nations Convention On The Law of The Sea)1982," the statement said. The dispute on maritime boundary erupted in February after Malaysia's National Oil Company, Petronas, awarded oil exploration rights in two exploration blocks in the Sulawesi Sea to Shell. Jakarta protested against the move, claiming that the resource-rich area in question was within Indonesia's territorial waters. A sea incident took place in the Sulawesi Sea last month, in which Malaysian and Indonesian navy vessels brushed against each other. However, the top leaders of the two countries have agreed that the dispute should be resolved through peaceful ways. The meeting was a continuation of the first meeting held earlier in Bali from March 22 to March 23 this year. The third technical meeting will be held in Indonesia in July 2005. ©2003 Xinhua News Agency.
SHIPPING company Malaysian Bulk Carriers Bhd (MBC) is headed for another record year in 2005, with net profit expected to easily surpass RM600 million. Of the total, RM454.3 million is expected to come from the sale of its seven vessels (four tankers and three bulk carriers) and the rest driven by its dry bulk and tanker businesses. Mayban Securities Sdn Bhd said this is achievable, given that prospects for shipowners such as MBC remain encouraging in 2005 as the enlarged trade and cargo base will keep demand for vessels at a high level and with leading yards worldwide at full capacity until 2008, the expansion in shipping capacity may not be excessive. “In addition, the United Nations ban on single-hull oil tankers will require fleet owners to scrap as much as 169 tankers that can carry 6.9 million tonnes of crude oil this year. This will keep tanker rates firm,” it said in a note dated April 15 2005. Mayban Securities is projecting MBC’s full-year 2005 net profit to be RM607.1 million, while total revenue is estimated at RM276.9 million. MBC posted a year of solid gains for the fiscal year ended December 31 2004 with revenue increasing 79 per cent to RM382.3 million and net profit rising 117 per cent to RM274 million. It will announce its first quarter 2005 financial results on May 25. Meanwhile, MBC chief executive officer Kuok Khoon Kuan said the group has undertaken several measures to cope with any possible downturn in the shipping industry and to ensure it remains profitable. It is expecting shipping rates for dry-bulk vessels and tankers to fall this year from last year’s record. One of the measures was the sale of the seven vessels early this year. It is also expecting its three-year contract with Tenaga Nasional Bhd — to ship coal to local ports — to contribute positively to its earnings this year. “In view of the easing in shipping rates, we have also committed a higher number of its fleet to mid-term (two to three years) and long-term (five years and above) time charters,” said Kuok. With the bulk of its vessels deployed on time charters, the group’s profits are less susceptible to fluctuations in shipping rates. “We have fixed 58 per cent of our fleet on period charters. This leaves only 42 per cent or five vessels operating in the spot market versus 70 per cent or 10 vessels a year ago,” he told a press conference following the company’s annual general meeting in Subang yesterday. Kuok, however, declined to reveal the time charter rates locked in for its vessels, but that some of them are higher than what are currently being offered in the spot market. MBC currently operates a fleet of 12 vessels (nine bulk carriers and three tankers). By the end of this year, its fleet will increase to 16 (13 bulk carriers and three tankers). MBC executive chairman Teo Joo Kim said the group will use part of its cashflow to buy more bulk carriers or tankers if the price is right. Mayban Securities estimates that MBC will be in net cash position this year given the large proceeds of some RM920.3 million from its vesselsales and after factoring in the capital expenditure commitments and fully redeemed redeemable preference shares. MBC stock closed unchanged yesterday at RM2.49. © The New Straits Times Press (Malaysia) Berhad.
Kuala Lumpur - Malaysia's deputy prime minister said on Thursday he has accepted a leading Indonesian newspaper's admission that it falsely reported he had apologized to Jakarta for a naval fracas between the two countries. Najib Razak said he wouldn't take action againstKompas, which acknowledged Wednesday that it was "incorrect" in reporting last month that Najib had said he was sorry for an incident between two warships patrolling the disputed oil- and gas-rich area of Ambalat. "I accept the decision of Kompas to apologize to me and the Malaysian people," Najib was quoted as saying by the national news agency Bernama. Najib stressed that last month's report by Kompas had offended Malaysia's national pride, but said because the matter had been resolved peacefully, it should provide an example for both countries in tackling their bilateral disputes. Malaysia - which threatened to sue the newspaper - denied that Najib ever issued an apology. In an article published Wednesday, Kompas said it "apologizes to DPM Najib and the Malaysian people" over the report, which had further soured relations between the neighbors in their long-standing dispute over the Ambalat region of the Sulawesi Sea. Tensions have brewed since Malaysia awarded oil exploration rights earlier this year in the region, which is also claimed by Indonesia. A tense standoff resulted with both countries deploying warships amid mutual accusations of violations of maritime borders. On April 8, warships of the two countries brushed each other.Soon after, Kompas reported that Najib apologized for the incident, implying that the Malaysian ship was to blame. © The Jakarta Post.
Malaysia's Prime Minister, Abdullah Ahmad Badawi, has weighed in to the controversy over some shipowners employing private armed escorts to guard against piracy attacks in the Malacca Strait. In rejecting the practice during a trip to the Netherlands last week, Mr Badawi said: “If we entrust the monitoring of security to civilian parties, something may happen that may set off reactions or incidents that are difficult to control.” Malaysia believes security in the busy shipping lane is the responsibility of the three littoral states. “Our [Malaysia’s] opinion is that it’s better for the monitoring to be done by the security authorities of Malaysia, Singapore and Indonesia,” Malaysian newswire Bernama reported Mr Badawi as saying. A furore over the use of armed guards to protect commercial shipping from piracy attacks was sparked last month after Glenn Defense Marine Asia carried out a security drill on its vessel the Glenn Brave Heart while berthed in Port Klang, Malaysia. It highlighted a growing trend in the offshore oil and gas industry to hire private armed escorts to protect tugs towing offshore structures and rigs through the strait. Such slow-moving vessels have been the prime target of heavily armed pirates in the northwest of the Strait who hijack the vessels and kidnap the crew for ransom. With the situation was getting as serious as one kidnapping a week late last year, an industry source said some underwriters had started to insist on armed escorts as a condition of cover. The issue of security in the key southeast Asian waterway was bought up by the Netherlands Prime Minister, Jan Peter Balkenende, when he met his Malaysian counterpart with the Dutch Prime Minister stressing the importance of safeguarding the crucial shipping route “I said that Malaysia, Singapore and Indonesia are serious about the matter and give priority to monitoring security of the shipping route in the Malacca Strait,” Mr Badawi said. Last November, the Dutch tug Smitwijs,towing a jack-up rig through the strait, suffered extensive damage when it came under fire from pirates armed with automatic weapons. The crew were able to take evasive action and escaped without the pirates boarding their vessel. The foreign ministers of Malaysia, Indonesia and Singapore are to meet in Indonesia next month to discuss Malacca Strait security. One of the issues on the agenda is private armed escorts and industry sources expect the Ministers to try and put a stop to their activities in the Strait. © 2005 T&F Informa UK Limited.
Malaysia - Bergesen Worldwide and Malaysia International Shipping Corp are tying up to develop Liquefied Petroleum Gas FPSOs in Malaysia with a project expected to be named in three to six months. MISC and Bergesen Worldwide signed a memorandum of understanding on Monday to co-operate and explore opportunities in the supply operation and maintenance of LPG floating production and storage offloading in Malaysia and floating production units worldwide. Svein Moxnes Harfjeld, Bergesen’s director for business development explained that the concept was the production and shipping out of gas from marginal fields. "Now we want to bring this business to Malaysia with MISC," he said. "Within three to six months we will have a particular named project." An industry observer noted that MISC’s parent company Petronas had a couple of field which could fit this criteria in waters off East Malaysia. Once a project is identified an LPG tanker from Bergesen’s fleet of 70 such vessels would be converted at Malaysia Marine and Heavy Engineering, formerly Malaysia Shipyard and Engineering, in which MISC owns a 65% stake. The candidate for such a conversion is likely to be a vessel built in the 1976 to 1983 period which can undergo life extension works to make the ship last for 40 years. Six ships in Bergesen’s fleet will have to be phased out of operation by 2008 – 2009. He added that the "prime focus was on the Malaysian market", although the two would also pursue opportunities globally. MISC chairman, Tan Sri Hassan Marican noted that with the agreement with Bergesen Worldwide it now had to major partners the former for gas developments and an agreement with Sing Buoy Moorings for oil. At the same time as the Malaysian shipowner signed the agreement with Bergesen it also inked another MOU with SBM to acquire up to a 49% interest in the FPSO Brasil located on the Rocador offshore field, Brazil. The offer is subject to approval from Petrobras. The latest MOU brings Bergesen Worldwide a step closer to its aim to have 10 to 12 FPSO projects worldwide by 2008, including the five it has at present. In terms of the expansion of its LPG fleet Mr Harfjeld said it had finished the ordering process "for the time being". The company ordered two 82,000 cu m vessels from Hyundai Heavy Industries earlier this year for delivery in the first quarter of 2008. The contract has options for further vessels but he declined to comment on how many. © Informa Asia Publishing Ltd.
MALAYSIA International Shipping Corp smashed through the billion dollar profit mark last year, powered by hefty gains from its exit from dry bulk shipping. MISC reported a net profit of M$4.76bn (US$1.25bn) for the year ending March 31, 2005 — more than double the M$2.29bn it made in the previous year. The result also represented close to a 50% net profit margin, with the shipping company reporting revenues of M$10.6bn, compared to M$7.6bn a year earlier. A major contributor to the massive profit was the US$740m sale of its bulk carrier fleet to Restis in late 2004 following an international tender. MISC made a US$440m profit from the sale. Much of the gain from this sale was reflected in MISC’s fourth quarter, from which profit before tax increased 200% to M$2.19bn compared to the same period a year earlier. A total of M$1.4bn in vessel gains was booked in the fourth quarter from the sales of 28 out of the 32 bulkers sold to Restis and the sale of two chemical tankers. MISC had long struggled to make a profit in the bulk carrier business and decided last year to quit the sector completely to concentrate on energy related shipping. “The increase in profitability was also due to robust freight rates in the petroleum, bulk and liner shipping segments,” it said. For the year as whole at an operational level it was energy-related shipping that generated the lion’s share of profits. This sector, which includes crude oil tankers and LNG shipping, made an operating profit of M$3bn. LNG shipping is MISC’s single biggest revenue and profit contributor, followed by tanker shipping — it is the world’s second largest owner of aframax tankers. The Malaysian company’s liner shipping division — categorised as liner logistics — also continued to show improved results, reporting an operating profit of M$266m compared to M$43m a year earlier. Despite market talk earlier this year that it was looking to sell a stake in its liner shipping division, which the company denied, no deal has transpired. Looking to the year ahead, MISC is confident of good earnings backed by its LNG and tanker businesses. “The prospects for the shipping industry remain good. MISC’s existing long term charters and contracts of affreightment in the LNG and petroleum businesses will continue to provide the group with strong and stable earnings,” MISC said. Last week, MISC chairman Tan Sri Mohd Hassan Marican warned that a glut of LNG newbuildings would put pressure on rates for LNG carriers. However, the company was largely insulated from this as it only orders new ships against long-term shipping contracts and not on a speculative basis. The final four bulkers from its enbloc sale to Restis, delivered on April 20, will provide a further exceptional gain that will boost results in the coming year. In addition to its existing business sectors, the company is also making inroads into the owning and operating of floating offshore oil and gas terminals. Last week it inked an agreement with Bergesen Worldwide to jointly develop liquefied petroleum gas floating production and storage and offloading vessels in Malaysia. Any conversion work will be carried out at Malaysia Marine and Heavy Engineering, majority owned by MISC. The Malaysian shipowner also signed another MoU with Single Buoy Moorings to acquire up to a 49% interest in the FPSO Brasil, located on the Rocador offshore field, Brazil. © Informa Asia Publishing Ltd.
THE anticipated glut in LNG tonnage will not hit operations or bottom-line of the world’s largest LNG operator Malaysia International Shipping Corp, chairman Mohd Hassan Marican said today. “There could be a glut in LNG tonnage in future, but we have a flexible fleet and we build only on the basis of firm contracts,” Marican told reporters. He was speaking after the re-branding ceremony of the former Malaysia Shipyard and Engineering at Pasir Gudang yard in southern Johor province. With effect from today MSE, which also has a new logo, will be known as Malaysia Marine and Heavy Engineering. MISC owns 65% of MMHE. MISC operates a fleet of 17 LNG tankers and has orders for another six. “We do not build on speculation, Marican stressed. While most of the ships are used to fulfil requirements of parent Petronas, MISC has also been actively pursuing third party charters and opportunities for carriage of back-haul cargo. © Lloyd's Register - Fairplay Ltd.
Malaysia Marine and Heavy Engineering, formerly Malaysia Shipyard and Engineering, is eyeing the construction of hulls for floating storage and production offshore units at Chinese shipyards. With a diminishing number of old tankers which can be bought for FPSO conversions, the shipyard is looking for partners to build the hulls. “In the future it will be newbuildings,” said Manoel Gomes, general manger of engineering and construction for the Malaysian yard. The yard has rejected the idea of building the new hull itself as this would close off its drydocks to ship-repair business. “We are looking for partners to tie up with us,” Mr Gomes said. He said that the Chinese had been asked to study building hulls that would then be towed to the Malaysian yard for topside construction. With shipbuilding berth space at a premium it is even considering the idea of building the hull in two halves at two smaller Chinese yards and then joining it together in Malaysia. © Informa Asia Publishing Ltd.
Malaysia's Petronas has withdrawn its 20% stake in a $2bn liquefied natural gas (LNG) project in Iran, an official was quoted as saying on Monday. "Petronas officials have officially announced their lack of interest," Rokneddin Javadi, head of the National Iranian Gas Export Company, was quoted as saying in the Jam-e Jam newspaper, discussing the "Pars LNG" project. "Petronas has ceded its 20% interest and we intend, if there are no other partners, to give their shares to France's Total," he added. This would lift Total's stake to 50%. Total said it had to make its mind up on whether to accept such an offer. "It is still under discussion and nothing is yet confirmed," a spokesman in Paris said. Javadi was not immediately available to comment. It had appeared earlier this month that Iran's President Mohammad Khatami had carved out a deal with Malaysian Prime Minister Abdullah Ahmad Badawi that Petronas should stay. Petronas had said it was reconsidering its involvement on commercial terms. Iran's LNG projects are closely linked to the upstream development of the giant South Pars gas field in the Gulf. Total and Petronas are jointly looking to develop phase 11 of this field. Petronas was not available to comment on whether it would be pursuing its interest in the upstream development. (Reuters) © 2005 T&F Informa UK Limited.
Strait of Malacca - this 600-mile-long passage between the Indian and Pacific oceans is infested with pirates who aren't the somehow lovable types popularized in the recent Johnny Depp film "Pirates of the Caribbean." Indeed when one of the main global security organizations fighting piracy sent out a poster promoting vigilance last year, the pirates depicted were so scary that many captains declined to post it on their ships. Pirates roam the seas wherever governments and law enforcement are weak. Above all, this occurs around Indonesia, which has more than 17,000 islands and suffered more than a quarter of the 325 reported pirate attacks in the world last year (many were not officially reported). The southwestern shore of the Strait of Malacca is the Indonesian island of Sumatra, the site of the earthquake that set off the devastating tsunami in December. According to the International Maritime Bureau's Piracy Reporting Centre, the Strait of Malacca is "the most dangerous passage" in the world. It is also arguably the most important, for more than 50,000 ships transit it annually carrying up to a third of the world's sea trade and more than 80 percent of the oil delivered to Asia's booming economies. The strait is particularly attractive to pirates because there are so many ships to choose from, and marauders can operate freely from inlets in Sumatra, where law enforcement is almost nonexistent. Piracy in the strait stopped for two months after the tsunami, but began again in March with robbery, kidnapping for ransom and homicide all on the menu. The attacks in the strait have become so nasty that many consider them terrorist. But there are no proven links between the pirates and international terrorism, and even the tough Islamic separatists in Sumatra deny links to the pirates or terrorism. Still, the chances of a terrorist attack have increased since Sept. 11, 2001, according to Capt. P. Mukundan, director of the maritime bureau. Such an attack might range from hijacking a ship and turning it into a floating bomb to sinking a very large crude carrier, the huge tanker that transports oil, at the Strait of Malacca's narrowest point. This could hamstring world trade for weeks. Although pirates focus on loot and terrorists on ideology, it is not always easy to tell them apart. The pirates can be as brutal as terrorists, and the latter have already executed maritime attacks in the Middle East, particularly around Yemen. In March 2003, a chemical tanker in the strait was seized, and the attackers took turns navigating it before departing. Because nothing was taken, many fear this was a terrorist trial run. There are several kinds of pirates. The little ones are maritime muggers who board a ship in port, at anchor or transiting the strait to steal whatever they can. But piracy sometimes involves major organized crime, a possible link to terrorism. Sometimes a ship is taken permanently, given a total face-lift, including a new crew, and set back in motion as a phantom ship, usually carrying illicit cargo, including illegal immigrants. Some of these ships have been recovered, but a Jane's Security News Brief reported in January that intelligence agencies believe al Qaeda and its affiliates have several dozen phantoms at their disposal. The pirates' main daily targets are tugboats and barges, usually slow moving and low in the water. They can be boarded easily and attacked without attracting much attention. Hitting an oil tanker or a cruise ship would focus world attention and might lead to a much more serious anti-pirate campaign, while either of those might be an attractive terrorist target. How can piracy be thwarted? For starters, ships should avoid high-risk areas if possible, limit access while in port, give good security training to their crews and be vigilant. Today there are also more watches at night, when attacks are most likely to occur, and more lights on decks. Investigations need to penetrate the board rooms of organized crime syndicates that are sometimes involved. Many pirates have been driven off when a ship conducted evasive maneuvers, the crew sprayed the pirates with high-pressure water hoses, and search- lights and flares were used. But as pirate armaments improve and violence increases, as they are, these tactics will be less successful. Already some cargo ships hire armed guards, and several cruise lines employ Nepalese Gurkhas. High-tech resources are being developed. Capt. Mukundan says the maritime bureau recommends Shiploc, a tracking system to locate a hijacked vessel by using a tiny transmitter concealed on the ship, and secure-ship, a non-lethal, electrified fence around the ship, adapted for maritime use. Last year the United States offered to become more directly involved in strait security, no doubt more concerned about potential terrorists than actual pirates. When Malaysia and Indonesia shouted that this would violate their sovereignty and perhaps provoke a terrorist attack, Washington offered training, intelligence and technology. Since the new round of pirate attacks began this year, Malaysia has said it will deploy police with assault weapons on tugs and barges in the most dangerous areas. But a few security guards on some vessels and scattered joint patrols will only scratch the problem. In November, the United Nations General Assembly called for multilateral policing of the strait. In the end, serious, coordinated government action must be taken against pirates and potential terrorists to protect ships of all sizes, the lives of crew members and the trade that is critical to the economies of Asia and the world. [William Ratliff is a research fellow at Stanford University's Hoover Institution who spends much time in East and Southeast Asia.] © 2005 San Francisco Chronicle.
Sandakan - The presence of maritime security forces of both Malaysia and Philippines has attributed as deterrence to undesirable activities in the area. Director of Malaysian Maritime Enforcement Agency, First Admiral Datuk Abdul Hadi Abdul Rashid said he noted that the presence of both maritime security forces in the area has deterred smuggling, piracy, robbery and illegal fishing. In addition, he said operations conducted by both sides have provided the necessary mechanism to enhance bilateral relation and co-operation. Speaking during the closing of the Philippine-Malaysia (PHIMAL) 11A/05 Co-ordinated Patrol Operation at KD Sri Sandakan Naval Base, here, Sunday. "The PHIMAL 11 operation though small in nature when compared to other operations is still very significant as it enhances security along the common border," he said. At the same time, Abdul Hadi said he is pleased to note also that despite the economic slowdown affecting both countries, the operation was continued as planned. "The commitment showed a clear manifestation that the maritime forces of both sides had remained committed in efforts to strengthen bilateral cooperation and friendship," he said. He said that despite the heavy commitment with other security matters, it would be even more gratifying if both sides could maintain a more frequent presence in the maritime border areas. "I look forward to the future when both countries have more assets to deploy on daily basis to ensure the border is safe from any form of undesirable activities," he said. The joint operation was focused on testing existing Standard Operating Procedure (SOP). Also present were Commander of Philippine Armed Forces Southern Command Lt. General Alberto Fernando F. Braganza, Commander of Naval Forces Western Mindanao Commodore Rufino S. Lopez, Royal Malaysian Navy Region II Commander First Admiral Datuk Abdul Aziz Jaafar, 2nd Division Air Force Commander Brig-Gen Datuk Abu Bakar Md Said and Sabah Customs Director Dr Hassan Arshad. © Daily Express, Sabah, Malaysia.
The Universiti Malaya Maritime Research Centre has started a six-month project to outline issues related to their conservation. The project will also identify measures to protect them in the Pulau Sibu, Pulau Tinggi and Sungai Pulai areas in Johor. Team members will also document sightings and habits of these rare mammals which eat sea grass and grow to about three metres and weigh as much as 400kg. Team member Affendi Yang Amri said one of the first steps would be to talk to fishermen in the areas and map out spots with sea grass. He said the research would focus on areas that have not been documented before in Peninsular Malaysia. He said that even though dugongs could be found in 37 countries, they were almost on the verge of becoming extinct. "We want to push for stern laws to protect seagrass beds and study dugong behaviour patterns to ensure they breed." He was speaking to reporters here after a ceremony in which Titan Chemicals Corp Bhd gave the UNDP (United Nations Development Programme) Dugong Conservation Project RM114,000. The ceremony was witnessed by Natural Resources and Environment Ministry deputy secretary-general, Datuk Suboh Mohd Yassin. The dugong came into the limelight after one creature, Si Tenang, which had been domesticated, died in 2001. Following its death, no less than 12 dugong carcasses were recovered in Johor waters. Most of the creatures, also known as sea cows, died due to marine activity and deforestation. Titan managing director Donald M. Condon said: "While looking for ways to play a role in environmental conservation in Johor, we came across this idea of protecting the dugongs. "It is important to identify the threats to dugongs and come up with a plan to protect and conserve the species." © NST Online.
KUALA LUMPUR — The foreign ministers of Singapore, Malaysia and Indonesia will meet next month to map out new strategies to guard ships against piracy in the busy Malacca Strait. Malaysia's Foreign Minister Syed Hamid Albar said the three littoral states would also discuss the controversial issue of mercenaries hired by seafarers to provide armed escorts. "We do not want such private escort services to continue. If every ship starts carrying weapons, it can lead to an uncontrollable situation which is very dangerous," he was quoted as saying by the Bernama news agency. Malaysia and Indonesia had objected to the presence of private armed escort ships in the narrow waterway. Mr Syed Hamid said the meeting would be held on Indonesia's Batam island. Malaysia also announced that it would be launching its new maritime agency established to fight piracy, illegal fishing and environmental pollution, in November. The country has recently come under pressure from the United States and Japan to beef up security in the Malacca Strait after a spate of recent pirate attacks. The narrow 960km-long strait, bordered by Malaysia, Singapore and Indonesia, is one of the world's busiest shipping lanes — used by about 50,000 ships a year carrying a third of world trade and half its oil supplies. ©2005 MediaCorp Press Ltd.
Pacific Rim Bureau (CNSNews.com) - In the latest sign of improving relations between Washington and one of Asia's most influential Muslim nations, Malaysia and the U.S. on Monday extended for 10 years a military cooperation pact. The signing took place during a visit to Kuala Lumpur by Deputy Secretary of State Robert Zoellick, who is on his first visit to the region since taking over as the administration's number-two diplomat. Called the Acquisition and Cross-Servicing Agreement (ACSA), the pact provides a framework for cooperation in military logistic matters. U.S. Ambassador Christopher LaFleur said at a signing ceremony the agreement "enhances strong military-to-military cooperation between our two countries." On-the-ground cooperation between the two armed forces was evident in the aftermath of the tsunami disaster last Dec. 26. Malaysia currently chairs the Non-Aligned Movement and the Organization of the Islamic Conference, and at times takes a leading role in developing country initiatives at international forums. Ties between the U.S. and the predominantly Muslim, multi-ethnic country took a hammering during the latter years of the tenure of former Prime Minister Mahathir Mohamad, a vocal opponent of the Iraq war and an often acerbic critic of the West. Since Mahathir's retirement in late 2003, relations have improved significantly under Prime Minister Abdullah Badawi. Last year, however, differences did emerge over the question of securing the Malacca Strait, one of the world's busiest shipping lanes which runs between Malaysia, Singapore and Indonesia. The area has been a hotbed of maritime piracy, and fears have grown since 9/11 that terrorists could mount an attack there with devastating effects on global shipping. One-half of the world's sea-borne oil supply travels through the waterway. A U.S. initiative aimed at improving security set off alarm bells in Malaysia and Indonesia, whose governments were opposed to the idea of U.S. forces patrolling the Strait. Singapore, a close U.S. ally, was cautiously supportive. U.S. military officials then sought to clarify that the Regional Maritime Security Initiative (RMSI) was aimed at helping the littoral states rather than deploying U.S. forces in the region. Malaysian Defense Minister Najib Razak told reporters Monday that he and Zoellick had discussed the Malacca issue, and that the U.S. does "not want to undermine the principles of sovereignty in this area." "In what way and what areas they want to help is for the U.S. to consider," he said. Razak also said the administration official praised Malaysia's cooperation in the field of countering terrorism in the region. Zoellick was due to hold a press conference later Monday. Malaysia, Indonesia and Singapore have established joint patrols in the Strait. Last week, head of the U.S. Pacific Command Admiral William Fallon said during a visit to Indonesia that the U.S. was offering expertise in the policing of ships. "We continue to encourage dialogue between all the nations in the region to enhance their efforts in this area," Fallon said after meeting with Indonesia's military chief. Last year, Fallon's predecessor, Admiral Thomas Fargo, explained that the goal of the RMSI was "to share information, provide cueing for emerging threats, and then to empower each nation to take the action it deems necessary to protect itself in its own waters, thereby enhancing our collective security." The International Maritime Organization (IMO) is planning a high-level conference in Jakarta late this year to examine ways to enhance security in the Malacca Strait, to ensure that it "continues to remain safe, secure and open to international navigation." Some 50,000 ships use the narrow channel each year. Singapore's Institute of South-East Asian Studies said in a report last year that a terrorist attack blocking the Malacca Strait would disrupt world trade and send marine insurance premiums and freight rates soaring. © Cybercast News Service.
SHIP operators have been advised to keep a reserve bunker sample handy to ensure compliance with Marpol Annex VI that comes into force on 19 May. The Marpol sample may be requested by Port State Control inspectors to verify the quality, and in particular the sulphur content, of the fuel used by the ship. DNV Petroleum Services' fuel testing laboratories in Singapore has advised ship operators to keep a sample that could be used as a ‘Marpol’ sample in case the bunker supplier did not fulfil requirements on sampling, sample preparation and documentation specified in Marpol Annex VI. “There seems to be a lot of confusion over who is to do what between the suppliers and the ship operators,” DNVPS told Fairplay. The laboratory has designed a ‘Marpol’ label to facilitate identification of such samples. © Lloyd's Register - Fairplay Ltd.
Singapore - Foreign Minister George Yeo attributed the settlement of land reclamation dispute between Singapore and Malaysia to two main factors. He said the first was the approach to use a third, neutral party such as the International Tribunal on the Law of the Sea, to help arbitrate the matter. And secondly, it was the improvement in bilateral relations. Mr Yeo said both sides were prepared to implement recommendations by the experts to mitigate any impact identified by the experts. He said the dispute arose earlier when bilateral relations were rather less amicable. He added that subsequent improvements in bilateral relations in the course of the study and the emphasis both sides placed on increasing win-win bilateral cooperation gave impetus to the resolution of the reclamation issue. "The manner in which this dispute has been settled gives us confidence that we can resolve our other bilateral disputes in a similar way," he said. © 2005 MCN International Pte Ltd.
Malaysia is in talks with Indonesia and the Philippines to allow their naval forces to pursue pirates in each other's waters in what could be a bold new effort to eliminate the scourge. Maritime Enforcement Coordinating Center director Abdul Hadi Rashid said Thursday Malaysia has a mechanism in place with Indonesia and the Philippines on coastal surveillance and security but that there is no agreement to allow the pursuit of pirates in each other's territorial waters. "This is still at a discussion level," he told a symposium on regional cruising in Kuala Lumpur. Allowing naval and marine police of the countries into their waters will be an unprecedented step for the three Southeast Asian countries, who guard their territorial integrity zealously. A Sulawesi Sea territorial dispute between Malaysia and Indonesia led to souring of relations between them recently. Abdul Hadi said Malaysia has put up radar systems along the Straits of Malacca and will establish an agency soon to step up security in the shipping lane, which carries half the world's oil and a third of its commerce. Addressing the same conference, Pottengal Mukundan, director of the International Maritime Bureau's piracy center, urged states to consider placing a liaison officer on each other's navy vessels so they can obtain immediate approval to chase pirates crossing into another country's waters. "Pirates often operate along territorial borders because they know there is no right of pursue across territorial waters," he said. "We want to see some mechanism within the region to improve bilateral cooperation." Separately, the anti-piracy watchdog rejected the use of private armed vessels to escort commercial ships in the strait, the world's most pirate-infested waterway, saying it could be counter-productive. Mukundan warned the use of mercenaries and private guards to safeguard merchant vessels could create new risks, such as the use of force in the name of self-defense, emergency medical assistance and the vetting of the armed guards. "There are a lot of questions that have to be properly answered and I think the coastal states are quite rightly concerned," he said. "Vulnerable ships, in particular, crossing the strait should be escorted by law enforcement agencies, not private entities." At least two companies have set up in Singapore to provide security. Mukundan singled out Indonesia as the weak link in the region due to its lack of resources. Last year, the IMB recorded 37 pirate raids in the 900-kilometer strait despite coordinated patrols by Malaysia, Singapore and Indonesia. © 2005 The Standard Newspaper Ltd., Sing Tao Newspaper Group and Global China Group.
MALAYSIAN police have taken charge of three bodies suspected to be of stowaways in a container on board the Danish flagged Arnold Maersk.The ship was bound for China from Europe. The bodies were reportedly discovered by the crew in an empty container after a protracted search to trace the source of a stench on board the vessel, The Star newspaper has reported. Following the discovery the captain sought permission to berth at Tanjung Pelepas to lodge a police complaint. Senior CID official Abdul Rahim Jaafar was quoted as saying on Sunday that the bodies had been sent for a post mortem. The ship was allowed to leave with the entire crew of 31. Fairplay understands that the container in question originated from Morocco and was loaded on to the ship at a transhipment port in Spain. Identities have not been established, but the dead are said to be 'dark-skinned males with curly hair'. “We are saddened that human lives have been lost and are fully co-operating with authorities in the investigation,” a spokesman for Maersk told Fairplay. © Lloyd's Register - Fairplay Ltd.
THE tanker market is likely to be the first shipping sector to suffer an oversupply of tonnage, leading to earnings declines for the next three years, Citigroup Smith Barney tanker analyst John Kartsonas has warned. He says minimal scrapping, extreme newbuilding volumes, increasing interest rates and high bunker costs will combine to drive down owners’ earnings for the medium term. “Fundamentally we continue to see a weakening tanker market, with supply growth significantly exceeding demand in 2005,” the analyst wrote. The bank has reduced its tanker scrapping estimates for the year to 6.5m dwt from 9.5m, with most of those heading to the scrapheap being under 80,000 dwt. “As a result, and given the more than 30m dwt of new deliveries, we look for the global fleet to grow almost 8%, on top of a 6% growth in 2004,” Mr Kartsonas continued. On the demand side, with Opec expected to supply an incremental 800,000 bpd of crude oil in 2005, compared with 1.9m last year, the bank forecasts tanker demand growth of slightly above 3%. Despite a possible spurt in the final quarter Citigroup does not anticipate spot rates to “average anywhere close to the levels of last year’s fourth quarter”. Further eroding profits are growing interest rates which especially affect companies with high leverage as most of the shipping debt is floating, based on Libor plus a negotiated margin. At the moment the 12-month Libor stands at about 3.7%, up from less than 2% a year ago. Alarmingly for many owners, Citigroup estimates that in the past 12 months “the increase in interest rates has led to an almost 50% increase in financing costs for a typical shipping financing deal”. Further financial pain comes from soaring bunker costs which in the past year, according to bank statistics, took away almost $7,000 a day of earnings for a typical Arabian Gulf-East VLCC trip. With the number of tankers flying out of the docks at yards across east Asia the spectre of surplus tonnage is appearing. Mr Kartsonas added: “Looking forward, for 2006 and 2007 combined, we look for net additions to the global tanker fleet of more than 45m dwt as the current order book stands at more than 85m dwt. We expect demand to grow at less than half that rate, which should put further pressure on day rates. “We believe tanker demand growth, especially for the crude trade, is restricted by upstream and downstream capacity limitations, and unless such bottlenecks improve significantly we believe 2004 will be remembered as the peak of the current cycle.” The analyst’s thoughts echo one of shipping’s principal tanker owner’s, World-Wide’s Dr Helmut Sohmen, who last month told Lloyd’s List that rates for VLCCs had peaked for this cycle. © 2005 T&F Informa UK Limited.
Sydney - Southeast Asian terrorists may have decided to suspend attacks in Indonesia since the devastating tsunami, but their overall objectives were unchanged, Australia's spy agency said Tuesday. "In Southeast Asia the tsunami that so tragically affected parts of Indonesia and other countries did not lead and has not led to any fundamental rethink by terrorists in that region," said Ian Cousins, deputy director-general of the Australian Security Intelligence Organisation (ASIO). "It is likely that in Indonesia and elsewhere in Southeast Asia, they may have taken tactical decisions to lay off attacks in Indonesia and Sumatra after the tsunami," Cousins told a Canberra conference. "But we can be certain the tsunami has not resulted in any change of strategic direction. We must expect that Australia and its overseas interests will continue to be targeted." Cousins noted there had been at least one actual or disrupted terrorist attack against Australian interests each year for the past five years. These included the Bali, Marriott and embassy attacks in Indonesia, the failed terror plot of Frenchman Willie Brigitte, and a thwarted plot to attack the Australian High Commission (embassy) in Singapore. ASIO was still tracking Australians who had undergone terrorist training abroad, he said, adding that 17 people had been refused entry to Australia since September 11, 2001 because of their alleged links to terrorism. Cousins said Brigitte illustrates the global nature of the challenge. "Born in the Caribbean -- Guadeloupe -- introduced to militant Islam in France, trained as a terrorist in Pakistan, Brigitte came to Australia to carry out a terrorist attack," he said. Without the cooperation of French authorities, ASIO and Australian police, he may have succeeded, Cousins said. "All that boils down to the fact that the challenge will be with us for a long time." Brigitte was deported from Australia in late 2003 and is being held in a French jail, where authorities believe he was planning an attack "of great size" in Australia. © 2005 Agence France Presse.
Bangkok - Thai Navy officers have detained five men suspected of being members of the Free Aceh Movement (GAM), an outlawed insurgency having been fighting for independence in the Indonesian Aceh Province since 1976. The suspects were captured earlier this week on a Thai vessel in the Andaman Sea off the coast of Thailand's southern Satun province, according to local journalists. Also found on board the vessel were several firearms, including two M-16 rifles and three AK 47 rifles, said the journalists. The suspected GAM members have been held for questioning. Meanwhile, about 200 maritime law enforcement officers of Thailand and Malaysia are taking part in a joint exercise, code-named Seaex Thamal 2005, in the waters off Malaysia's Kelantan peninsular and Thailand's southern bordern province of Narathiwat. The Royal Malaysian Navy (RMN) and Malaysian marine police, as well as the Royal Thai Navy (RTN) and Thai marine police are involved in the exercise, according to a news report of BERNAMA News Agency. The six-day joint exercise, which will end next Tuesday, is the first of the two series of the two countries' joint exercises planned for this year, said the news report of the Malaysian national news agency, disseminated to TNA on Saturday. The main objective of the exercise is to enhance the co-operation and understanding between the maritime agencies of the two neighbouring countries. (TNA) © MCOT Public Company Limited.
Singapore - Deputy Prime Minister and Co-ordinating Minister for Security and Defence Tony Tan has warned that transnational terrorism is still the most immediate threat to all countries. He said even with the arrest of key Al-Qaeda and Jemaah Islamiyah leaders, the terrorism situation may be more dangerous than before. Speaking in Parliament on Monday, Dr Tan noted however that more countries in the region are now aware of the real threat posed by terrorism. A reality check from the man in charge of containing the terror threat - Singapore is still a prime target. Dr Tan said: "With the arrest that have taken place, there is no doubt Al-Qaeda and Jemaah Islamiyah leadership have been disrupted, so the chain of command is not as tight as before, but does not mean the threat has lessened? "It could evolve into a more dangerous version, without a top control, JI is splintering into groups each with their own agenda, carrying out bombings on an indiscriminate basis, no one to control them, is this more dangerous than before?" He noted that regional governments like Singapore's neighbours - Malaysia, Indonesia and Thailand - are cooperating to tackle the issue from maritime security including coordinated patrols to sharing information on terrorist networks. Tracking sea vessels with the use of transponders will also become commonplace. Dr Tan said: "The Thai government is more conscious of the possibilty of terrorism. The danger is that incidents arising from these succession movement in southern Thailand could lead beyond the three southern Thai provinces, into other population centres including holiday resorts." It is also crucial for Singaporeans to adopt "security consciousness" as a way of life. Although a recent survey found that Singaporeans are generally more confident of the government responding to a terrorist attack, only half said they knew what to do in the event of an attack. Perhaps it is not surprising - even though efforts such as preparing emergency bags - are one way to boost awareness, Dr Tan said more has to be done. When Opposition MP Low Thia Khiang asked if the threat was worth alarming the public and scaring off foreigners, Dr Tan's reply was unequivocal. He said Singapore's attractiveness as a hub to foreigners and locals alike was because of the strong stance it takes against terrorism. This includes actions such as screening luggages at the airport and having air marshals. In aviation, apart from having air marshals, every piece of luggage going through Changi Airport is now screened. © 2005 MCN International Pte Ltd.
Jakarta - Securing the vital shipping lane of the Malacca Straits is the "foremost" responsibility of the littoral states of Malaysia, Indonesia and Singapore, said the newly-appointed Chief of the United States Pacific Command Admiral William Fallon. He said the three countries were capable of protecting the waterway without the help of the US. His remarks are in contrast to a suggestion by his predecessor that the US deploy troops to help patrol the shipping lane. "The straits are important and I believe, first and foremost, the responsibility for security of the straits belongs to the nations that occupy the littoral lands and I believe that’s exactly the way it should be," Admiral Fallon said at a Press conference here yesterday. "I believe the nations of the region can do a very adequate job in taking care of this without our help. I would encourage them to continue to do so," Fallon added. Last year, Malaysia and Indonesia protested when the former Pacific Commander, Thomas Fargo, unilaterally suggested putting US special operation forces on high speed vessels to safeguard the Straits of Malacca from potential terrorists attacks and to prevent the movement of cargo containing weapons of mass destruction. Indonesia’s armed forces chief General Endriartono Sutarto yesterday said only the littoral states would deploy troops to protect the sea lane. Malaysia, Indonesia and Singapore last year launched joint patrols to curb piracy and deter maritime terrorism in the 900-km waterway in response to concerns of possible US intervention. As one of the world’s busiest shipping lanes, Fallon said it was in the world’s interest to secure the straits. "The importance of the straits is very significant because of the large volume of trade, the amount of shipping that transits the straits. "There is interest around the world in safeguarding the passage of those ships that use the straits, both for international trade and for local trade between the nations that reside along the straits," said Fallon. At least 50,000 ships sail through the straits every year transporting 30 per cent of the world’s trade in goods and 80 per cent of Japan’s oil needs. Indonesian waters are among the most dangerous. The International Maritime Bureau says nearly a third of reported cases of pirate attacks in 2004 happened in Indonesian waters. © 2004 NST Online.
Kuala Lumpur - Newly-captured birds are far less expensive than those that have been in captivity for some time, as the former do not sing readily. Bulbul losing the war-ble. The absence of the melodious singing by the Straw-headed Bulbul is sending out a clear message that this species is fast becoming extinct. The Straw-headed Bulbul (Pycnonotus zeylanicus) came into the limelight in January as the first bird to be featured in a series of 12 collectors’ coins, under the theme "Endangered Birds", released by Bank Negara. However, the theme may soon have to be changed to "Extinct Birds" if preventive measures are not taken. These birds used to be found in abundance on the water edges of lowland forests of Java and Sumatra in Indonesia, Borneo, Thailand, Peninsular Malaysia and Singapore. Although it cannot be established when the decline actually began, it is known that this species is now virtually extinct in Java and Thailand and facing rapid decline in Sumatra and Borneo, according to Traffic, the wildlife trade monitoring network of the World Wide Fund for Nature and The World Conservation Union (IUCN). "The species’ last real stronghold is Peninsular Malaysia and Singapore," said Chris R. Shepherd, Traffic’s regional programme officer for Southeast Asia, adding that the bird is totally protected in Singapore. However, that "stronghold" may not last. A recently-released report by Traffic singled out the case of the Straw-headed Bulbul as one causing the most concern. The report on the trade in wild animals for pets in Medan, Sumatra, by Traffic said that although listed under Appendix II of the Convention on International Trade of Endangered Species (CITES) of Wild Flora and Fauna, the birds were being smuggled from Penang across the Straits of Malacca to Medan without the required permits. Under Appendix II of CITES, trading of the Straw-headed Bulbuls is limited to quotas and may only be carried out with a licence or permit. During the 1997-2001 study conducted by Traffic, researchers recorded 1,469 Bulbuls for sale in Medan's markets. In the past, Straw-headed Bulbuls captured in Sumatra were sold to markets in Java, where the species had already been depleted, said the report. The report also quoted local dealers as saying that the bird was now all but extinct in Sumatra and that practically all specimens recorded were from Peninsular Malaysia. "Dealers in Medan told us they are smuggling the birds from Malaysia to meet the local demand in Indonesia,"said Shepherd. "I observed more than 20 of these birds in Medan just two weeks ago. "If this trade is not controlled, Malaysia’s Straw-headed Bulbul population will suffer the same fate as those in Indonesia and Thailand." Meanwhile, Wildlife and National Parks Department (Perhilitan) law and enforcement director Misliah Mohamad Basir said the department was aware of the danger of extinction faced by the birds and was taking precautionary steps. "We will be amending our Wildlife Act at the end of this year, and the Straw-headed Bulbul will be given totally protected status," she said. "With this amendment, no trading of the bird will be allowed." © NST Online.
How can we strengthen cooperation in East Asia, so as to sustain growth and prosperity for all across the region? First, we need to integrate China into the regional economy in an orderly, win-win manner. Second, we need to strengthen cooperation among the other economies in East Asia. Third, East Asia must stay outward looking and strengthen its cooperation without becoming closed or protectionist. Fourth, economic integration must be underpinned by a stable security environment. China's growth into a heavyweight economic player is the central reality in Asia. It brings tremendous opportunities to all, but also changes the status quo. China is developing a broad range of capabilities. It competes with developed countries in research and development and high-end manufacturing, and with developing countries in low-cost, labour-intensive operations. Countries have to restructure and upgrade their economies, develop new competencies, adapt to the new reality and prepare their peoples, in order to benefit from China's growth. For its part, China has strongly affirmed its intention to emerge peacefully and to cooperate with other countries on a win-win basis. For example, in the free trade agreement which China is negotiating with ASEAN, it has given ASEAN countries favourable access to its market through an "Early Harvest" package. The chapter on trade in goods has now been completed. This will foster even closer linkages between China and ASEAN, and also help China to integrate smoothly into the global economy. We must strengthen cooperation amongst other Asian countries, so that even as China's economic weight grows, it does not become the only growth engine in East Asia. Cooperation amongst other Asian countries will produce a multifocal, multiconnected pattern of growth, broader and more robust than a "hub and spokes" configuration where every link either starts from or ends in China. One sub-regional group which needs to strengthen economic cooperation among itself is ASEAN. Taken together, ASEAN is a strong global competitor and an attractive investment destination. But to draw the MNCs, ASEAN needs to integrate into one economy. The group is working towards an ASEAN Economic Community by 2020. The year 2020 is still 15 years away, but I believe that ASEAN countries understand the seriousness of the competitive challenge, and will want to set more ambitious and less distant targets. Later this year, in Kuala Lumpur, the leaders of ASEAN will make a declaration to draw up an ASEAN Charter establishing the constitutional framework of what we want to become. This will give ASEAN integration a much needed push. Another important cross-linkage is between ASEAN and Japan. Japan possesses advanced technology and deep capabilities unmatched by any other country in the region. Japanese MNCs can offer ASEAN countries investments, knowhow, jobs and access to developed countries' markets. It will be a long time before Chinese MNCs can do the same. Unfortunately, after the bubble economy burst in 1990, Japan stagnated for more than a decade. But it is emerging from these problems. Under Premier Junichiro Koizumi, Japan has made great progress in reforming and recapitalising the banking system. Companies have cleaned up their balance sheets, and the government is now pushing hard to privatise Japan Post, which will have far-reaching consequences. To such a revitalised Japan, ASEAN is of special significance. It offers a competitive production base, supplies Japan with many natural resources, especially energy, and contains some of the busiest and most efficient seaports and airports through which Japan can reach out to the world. Japan should see its relationship with ASEAN as a strategic one. Trade and investments are important in themselves, but also part of this larger relationship. Japan has an Economic Partnership Agreement with Singapore, and has just concluded another one with Malaysia. But bilateral deals should not be our end objective. They are catalysts and building blocks for economic cooperation at the regional or multilateral level. Through the momentum generated by the bilateral deals, we should accelerate the progress of the Japan-ASEAN Closer Economic Partnership (CEP). So far, negotiations for this CEP have progressed less quickly than the FTA negotiations between China and ASEAN. The two sides should muster the political resolve to take bold decisions and conclude a worthwhile agreement that will signal clearly Japan's stake in ASEAN. Finally, underpinning growth and prosperity in East Asia is a stable security environment. The key players shaping this environment are the US, China and Japan. The dynamic balance between these three players provides a tripod of stability for the region. With major changes underway, friction and contention will sometimes occur. There are also hotspots which must be managed carefully. The US and Japan are steady allies. The Security Alliance assures Japan of the security it needs, without Japan having to build up its own military forces and particularly a nuclear capability, which would cause other countries to react, and destabilise the region. Japan and China share a long and intertwined history. The two countries have not reconciled and come to terms with the history of World War II, the way Germany and France have done in Europe. So some friction is inevitable as both enlarge their influence regionally and internationally. But a collision is not inevitable, because both governments see the benefits of cooperation and neither wants a conflict. But both sides need to moderate nationalist sentiments, manage territorial and other disputes which arise, and find wise ways to gradually defuse the issue and work toward reconciliation. This will also help Japan to make a fuller contribution internationally and take its rightful role amongst the community of nations. Between the US and China, although rivalry will never be entirely absent between them, there is no fundamental clash in ideology unlike during the Cold War. China too depends on the market economy, and pushes for economic growth and prosperity for its people. The US and China have already developed a substantial economic relationship, which will make conflict very costly. This gives both sides a strong incentive to manage differences and cooperate with each other. One issue that could sour US-China relations is Taiwan. Not long ago, there appeared to be a real danger that Taiwan would make moves towards independence, triggering military action from China, which might drag in the US and Japan. Now, the temperature has cooled. US President George W Bush has made his position clear that he does not support Taiwanese independence, and that there is only One China. China has passed the Anti-Secession Law, stating formally that it will act if Taiwan moves to secede. Japan has indicated for the first time that it will cooperate with the US should there be conflict in the Taiwan Strait. The lines have been drawn. The Taiwanese public now understand that independence is out of the question. Their mood has shifted and there is a growing desire to work with China to secure advantages for Taiwan. Both sides need to show flexibility and creativity in order to build on this progress, strengthen their interdependence as well as stabilise the situation. Another hotspot is the Korean Peninsula. A nuclearised Korean Peninsula aggravates the problem of nuclear proliferation and technology falling into wrong hands, and can trigger a dangerous arms race in Northeast Asia. The Six-Party Talks provide a framework to manage the situation, but the talks are being held hostage by North Korea's brinksmanship, which raises anxiety levels and increases the risk of miscalculation. China has the biggest influence in North Korea. It will have to be convinced of the gravity of the problem, recognise China's own interest in this issue, and lend its weight to bringing North Korea back to the Six-Party Talks. Another problem we must worry about is the continuing threat of extremist terrorism, and particularly the issue of maritime security. Some 50,000 ships sail through the Strait of Malacca and Strait of Singapore every year. Although the littoral states have primary responsibility for ensuring maritime security in the strait, we need the assistance of the US, Japan and China, and indeed of all major interested parties. Japan has taken the lead in focussing global attention on the problem of maritime security. It has indicated its intention to help ASEAN, in particular Indonesia, build capacity and capability to ensure the security of major sea lanes in the archipelago. This is an important contribution to regional security. Finally, a stable East Asia also depends on the wider international order, and thus on a credible and effective United Nations. Singapore supports the UN reforms, because an expanded UN Security Council will better reflect the reality of the diverse interests of the global community today. In line with this, Singapore supports Japan having a permanent seat in the UN Security Council. Japan is a natural candidate, given its international influence and its significant contributions to the region and the world. However, it would be unrealistic to expect any new permanent members in the UN Security Council to be accorded veto powers. This would complicate and slow down decision making in the UN, increase the likelihood of gridlock and ultimately undermine the UN's credibility and effectiveness. This would not be in the interest of any country, and small countries like Singapore would feel this loss most acutely. We live in an unprecedented era, when almost everywhere in Asia we see growth, progress and hope. But to realise the promise of a stable and prosperous East Asia, we need to continue to strengthen cooperation, resolve differences and put in place a regional architecture which enables all countries to grow in peace. The solutions will be dynamic, evolving as Asia progresses. But however the future unfolds, Japan should continue to play a significant role, contributing to the region and prospering with it. © 2005 Sinchew-i Sdn Bhd.
Symposium Malaysia 2005 is an international gathering of the key players in the maritime tourism industry in the region. Malaysia is the inaugural host and delegates are expected from participating countries, including Brunei, Cambodia, Hong Kong, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam with observers from UAE, Australia, New Zealand and China. The key objective of the symposium is to promote the development of the new cruising playground as a borderless regional cruising playground consisting of the wide arc of water from Yangon to Manila Bay. Symposium Malaysia 2005 will be a platform where the governments and key cruising operators of the participating countries will meet to promote confidence in the region and to enhance the growth of marine tourism with a coordinated approach. The organisers are delighted to announce that Bruno Peyron, current holder of the crewed Round-the-World Sailing Speed Record (50d 16h 20m), will attend the Symposium. Peyron last visited Malaysia in 2003 when he attended the inaugural Royal Langkawi International Regatta, and says that he hopes 'that the Symposium will successfully meet the objective of promoting marine tourism in the region from Yangon to Manila Bay.' © sail-world.com.
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U.S. Department of State
Office of the Spokesman
May 9, 2005
REMARKS
Deputy Secretary Robert Zoellick At the U.S. Ambassador's Residence
May 9, 2005
Kuala Lumpur, Malaysia
DEPUTY SECRETARY ZOELLICK: Thank you all for joining us today. My name is Bob Zoellick and I'm the Deputy Secretary of State. This visit to Malaysia is the fifth stop of six that I a