KUALA LUMPUR: The Transport Ministry has formed the Malaysia Maritime Law Revision Committee (MLRC) to review and update the Merchant Shipping Ordinance (MSO) 1952 and the respective Port Acts to ensure they remain relevant and effective in the face of evolving industry practices, international standards, and maritime treaties, said its minister, Anthony Loke Siew Fook.
He said that the MSO 1952 and Ports Acts need to be updated before the ministry looks into developing a national shipping policy and maritime master plan.
The MSO 1952 is a Malaysian legislative instrument that governs maritime activities such as ship registration and licensing, seafarer qualifications, safety standards, and other matters related to merchant shipping.
The Port Acts, comprising the Port Authorities Act 1963, the Penang Port Commission Act 1955, and the Port Privatisation Act 1990, are legislations that established port authorities to administer the specified ports and facilitate the transfer of port undertakings to licensed port operators.
“Amendments to MSO 1952 and the Port Acts require immediate action. We will bring (the amendments) to Parliament next year.
“This will be part of the government’s efforts to overhaul the nation’s shipping sector.
“We need a policy to guide the sector’s direction and growth, and this must be supported by relevant legislation,” he said after delivering a special address at the two-day Asian Maritime Law and Business Conference, which kicked off today.
Loke said that the MLRC is expected to complete its task within 12 months and has started looking into reviewing and updating Malaysia’s shipping and maritime legislation since last month.
“The MSO 1952 currently applies to Peninsular Malaysia and the Federal Territory of Labuan. The latest amendments to the MSO 1952 were passed by Parliament in 2017 and have yet to come into force, pending the enactment of a few subsidiary legislations.
“Some parts of the MSO 1952 were extended to and accepted by Sabah and Sarawak and became part of the Merchant Shipping Ordinance 1960 of Sabah (Sabah MSO 1960) and the Merchant Shipping Ordinance 1960 of Sarawak (Sarawak MSO 1960),” he said.
The transport minister added that the Sabah and Sarawak state governments have yet to accept substantial revisions, such as the civil liability regime for maritime incidents.
He also highlighted that respective enactments of the Port Acts after the MSO 1952 have resulted in inconsistencies and overlapping jurisdiction, impacting effective port governance.
“Therefore, a review of the Port Acts together with the MSO 1952 provides an opportunity to clarify the jurisdiction between the Port Authority and the Port Officer acting under the direction of the Director of Marine.
“It also offers a chance to review the legal and institutional framework for shipping and maritime governance for effective policy decision-making,” he added.
When asked about the status and progress of the Malaysia Shipping Master Plan (MSMP), Loke said he would focus on updating the existing laws.
He said there is a need to review and improve existing legislation instead of focusing too much on blueprints.
“Maritime law associations have consistently pointed out that our laws are outdated and unable to move in tandem with current economic growth. Therefore, we need to expedite (these amendments),” he added.
Earlier, during his speech, Loke said that the amendments are instrumental in achieving maritime transport policy objectives and integral to the logistics sector as over 90% of the volume of international trade in goods is carried by sea.
“Malaysia’s maritime transport accounts for approximately 96% of its international trade, which has laid the foundation for its active role as a major trading nation,” he said.
Malaysia’s trade value expanded by 9.3% to RM2.38 trillion during the first 10 months of 2024 compared to the same period in 2023.
Exports rose 4.8% to RM1.24 trillion, and imports increased by 14.6% to RM1.14 trillion, resulting in a trade surplus of RM102.77 billion.