KUALA LUMPUR (May 5): All single-hull double-bottom (SHDB) tankers under the Malaysian flag are allowed to operate in coastal rural areas of Sabah and Sarawak and other areas in Peninsular Malaysia, to ensure smoother operations of shipping services in the country.
The new terms and conditions for the SHDB will come into effect on June 1, once the Marine Department issues a new marine shipping notice (MSN), said Transport Minister Anthony Loke Siew Fook.
He added that with the new notice, the SHDB shipowners are not required to seek the ministry for exemptions to operate in coastal areas.
Previously, the Marine Department had on Aug 5, 2020 announced that only double-hull double-bottom oil tankers are allowed to operate in the rivers and coastal waters, while single-hull tankers were required to get exemption from the transport ministry to operate.
“Two years ago, the ministry issued a notice to all shipping companies that they have to embark on double-hull double-bottom. But that directive was not practical because there were some small islands which needed to be served by smaller boats.
“So, every time they need to renew their licence, they need to get an exemption from the ministry and given by the minister,” Loke explained.
The minister highlighted that by giving out a blanket exemption with conditions, it helps avoid corruptive practices that plague the maritime industry.
Loke referred to the Malaysian Anti-Corruption Commission’s investigation on five individuals, including a department deputy director-general, over a graft scandal related to the approval and special exemption granted to several companies hipping heavy grade oil (HGO) in Malaysian waters.
“We do not want this to happen again. So, the clear policy is that exemptions are given to those smaller boats with conditions. We have to allow this, so that fuel can be shipped to these islands,” Loke said at the agreement signing ceremony between the Malaysia Bunkering Association (MBA) and the Malaysia Shipowners’ Association (Masa) on Friday (May 5).
Some of the conditions include that these single-hull tankers are not allowed to carry HGO, must navigate within Malaysian waters, and must weigh less than 5,000 tonnes in deadweight.