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.