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Published online by Cambridge University Press: 07 May 2025
In 2005, more than 62,000 ships sailed through the Straits of Malacca, one of the world's busiest and most important shipping lanes. Linking East and Southeast Asia with the world, one third of world trade and half of global oil pass through the Straits.
With projected growth in global trade and the rise of East Asian economies, financial demands can be expected to grow on the littoral states—namely Malaysia, Indonesia and Singapore—to ensure navigation safety and control marine pollution. In addition, the heightened perception of risk to ships traversing the Straits due to threats of piracy and terrorism has led to increased security costs.
Considering that an estimated 80% of vessels traversing the Straits are on transit, the littoral states have called for burden sharing in various meetings and conferences over the years. However, there has been little follow-up by the stakeholders to collectively address the issue, and still less effort to come up with an acceptable and workable operating mechanism. Drawing on presentations at the recent International Maritime Organization Meeting (IMO) in Kuala Lumpur, this article presents a case for burden sharing in the Straits.
[1] STRAITREP is a mandatory reporting system under which the statistics of ships traversing between the Vessel Traffic System (VTS) centers established in Port Klang and Tanjung Piai along the Malaysian coast bordering the Straits of Malacca are captured.
[2] Marine Department, Peninsular Malaysia statistics.
[3] LMA, an insurance trade association based in London acting for its members in the Lloyd's underwriting market, issued a list on 20 June 2005 via its Joint War Committee detailing procedures for amending the war risk areas used on marine hull war risk contracts. The list was a sweeping overhaul of its listed war-risk areas, provided new guidelines to underwriters listing a total of 21 areas worldwide in jeopardy of “war, strike, terrorism and related perils”. The areas specified included the Straits of Malacca and adjacent ports in Indonesia. Other countries on the list include Iraq, Somalia and Lebanon. The Straits was taken off the list in August 2006.
[4] Oegroseno, A.H. (2004), ‘Straits of Malacca and the challenges ahead: Indonesian point of view’, in Basiron, M.N. & Dastan, eds., Building a Comprehensive Security Environment in the Straits of Malacca, (Kuala Lumpur: MIMA), p. 28–39.
[5] Nippon Maritime Center survey, 2004.
[6] Sakurai, T. (2004), ‘Straits of Malacca and the challenges ahead: Japan's perspective’, in Basiron, M.N. & Dastan, eds., Building a Comprehensive Security Environment in the Straits of Malacca, (Kuala Lumpur : MIMA), p. 51.
[7] MEH is an innovative marine information and infrastructure system that integrates environmental management and protection systems and maritime safety technologies. Funded by the World Bank, the US$17 million conglomeration of systems and technologies aims to enhance maritime services, improve navigational safety standards, integrate marine environment protection and promote sustainable development of coastal and marine resources. Besides Japan, Korea also contributed a sum of US$1 million to the project.
[8] Doughton, T. F. (2004), ‘Straits of Malacca and the challenges ahead: The U.S. perspective’, in Building a Comprehensive Security Environment in the Straits of Malacca, edited by Basiron, M.N. & Dastan, A. (Kuala Lumpur: MIMA), p. 42.
[9] Hamzah, B.A. & Basiron, M.N. (1996). The Straits of Malacca: Some Funding Proposals. Kuala Lumpur: MIMA. pp. 43–45.
[10] Doughton, T.F., p. 42.
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