Transforming the Maritime Sector BA Hamzah[1]

Introduction

The maritime sector of Malaysia contributes more than 30% of the GDP. The contribution is much larger if we include the services sector like ports, shipping, and other maritime-related services.

The maritime sector is almost twice the size of Malaysia’s land mass. The sea is the primary source for our oil and gas as well as fish. Our ports are the international gateways for commerce.

Although it remains the first line of defence for the nation, the sea also separates the Peninsula from Sabah and Sarawak by 3,000 nautical miles of ocean and air space.

Challenges

Despite its size and large contribution to the national economy and security, planners tend to ignore the maritime sector which faces many challenges. They include the following:

• Poor governance of the maritime sector. There is no overarching national policy on how to manage the maritime sector. Unlike in Indonesia, Japan, Canada and South Korea, we Malaysians do not see the maritime sector as one integral part of our national territory-an extension of the landmass. There are more than 21 agencies responsible for the ocean sector; each sector hardly talks to each other.
• Conflict- prone sector. It is said that the next conflict in the region is likely to be at sea. The big powers are quarrelling over the South China Sea and the East China Sea. In our case, we have overlapping claims and unsettled maritime problems with Indonesia, Vietnam, the Philippines, Singapore and China. The unresolved maritime boundary disputes with the immediate neighbours could be the next flash point if we make no effort to nip them in the bud.
• Our maritime laws are outdated. Look at the Malaysian Shipping Ordinance. We have separate Ordinance for Sabah and Sarawak. We have not updated the Ordinance. In 1984, Malaysia enacted the EEZ Act, yet we have not produced the EEZ map. In 2006, Malaysia promulgated the Baselines of Maritime Zones Act to streamline our baselines, among others. We have done nothing to give effect to this Act. Similarly, in 2012 the Government promulgated the Territorial Sea Act, yet it has not taken any step to streamline the width of the territorial sea in the Strait of Malacca to conform with international practices. For example, in some parts of the Strait of Malacca, the width of the territorial sea exceeds the legal limit set in the 1982 UNCLOS Treaty, which Malaysia ratified in 1996. Malaysia still retains the Environmental Quality Act,1974 which has minimum provisions on how to manage pollution at sea and from land sources.
• Enforcement at sea is weak. Although we formed the Coast Guard (MMEA)in 2005 by a special Act, its operational efficiency has been constrained by the non-participation of the Royal Malaysian Police (Marine Police). The Coast Guard has antiquated vessels from the Royal Malaysia Navy. It also lacks critical air support. There are so many agencies doing enforcement functions at sea, each protecting own turf.
• Malaysia has no proper map or chart for the maritime domain. The current map is outdated. Contrary to opinions, the 1979 Map shows mainly the continental shelf boundaries with Indonesia agreed to in 1969 and 1970. The accuracy of this map has been challenged in the International Court of Justice, twice.

Putting the major activities at sea under one roof makes sense. South Korea, Indonesia, Japan, Taiwan and Canada, to name a few, have a special Ministry to oversee the activities at sea.

The Way forward

Reform the maritime sector in terms of governance and functions.

Address the issue of coordination towards a more integrated national maritime policy that also addresses, among others, the interface between land and sea. To minimise overlapping functions, an inter- agency coordinating Department for the maritime sector under the Prime Minister’s office should be quickly formed.

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 [1] Another version of this article was published by the New Straits Times on 21 December 2019. https://www.nst.com.my/opinion/columnists/2019/12/549605/maritime-sector-need-reform

B.A. Hamzah is a student of regional geopolitics and defence policy, and a commentator on maritime security.