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

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He said the issue not only impacted the domestic scene but also the country’s footprint on the global map, as the declining number of ships bearing the national flag meant reduced Malaysian presence in international waters.

MASA has vigorously defended the policy in the past, stating that it is the “last bastion of the maritime sector” and crediting it with the significant growth seen in the local shipping industry. Year of more hotels and lodgings. On 1 Januarythe Government of Malaysia implemented a national cabotage policy with an aim to protect and promote a strong national shipping-owning industry. However, such licenses are only granted on a temporary basis up to a maximum period of 3 months.

According to the minister, although the previous rules may have been acceptable in the past, the ports in East Malaysia are not better equipped. In there was a partial liberalisation of the policy allowing the carriage of containerised transhipment cargo between certain ports in Peninsula Malaysia and East Malaysia and more recently, in an exception was made for passenger cruise ships The master, owner or agent of any ship which contravenes these provisions will be guilty of an offence and upon conviction be liable to a fine.


The main objective of the policy was to safeguard and promote the domestic shipping industry and for Port Klang to be the container hub port in Malaysia. At a time when many offshore support vessel “OSV” owning companies are struggling due to the global fall in oil prices and over capacity, those owners with partnerships across the region which allow them access to cabotage areas are perhaps faring better than their competitors.

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Click here for instructions on how to enable JavaScript in your browser. Malaysia consists of three federal territories and thirteen states located in Peninsula Malaysia bordering Thailand and East Malaysia in the island cbotage Borneo bordering Brunei and Indonesia.

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

Critics of the policy, mainly from East Malaysia, have claimed that it has led the costs of goods in Sabah, Sarawak and Labuan to surge, due to the high freight rates and additional transhipment rates.

Overview Following its implementation, this protectionist policy has been liberalised throughout the years.

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The Malaysian cabotage policy includes ships used in the kalaysia industry within its exclusive economic zone. The materials contained on this website are for general information purposes only and are subject to the disclaimer.


The Malaysian Cabotage Policy : Clyde & Co (en)

Maritime Business and Human Rights: The chief minister of Sarawak welcomed the exemption and is of the view that the cabotage rules are outdated. Rally behind new govt: Samskip to develop autonomous, zero-emissions containerships. Finally, MASA had stressed that it is encouraging the government to consider a review of the policy, including restricting the exemption to international transhipment container trade in all East Malaysian ports.

In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Under the proposal, foreign ships can transport cargo domestically.

Ministry of International Trade and Industry

For further advice or should you have any questions, please feel free to contact: ILO is a premium online legal update service cabltage major companies and law firms worldwide.

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Foreign vessels must offload their goods at designated major ports in West Malaysia as they are not allowed to call directly at East Malaysia’s ports. Unlocking the benefits malayzia renewable propulsion Diane Gilpin.

Changes to National Cabotage Policy

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