Maritime expert Datuk Seri R. Jeyenderan has urged Prime Minister Anwar Ibrahim to position Malaysia as a regional marine-fuel hub.
PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has been urged to position Malaysia as a regional marine-fuel hub to generate greater economic value from the country’s petroleum and palm oil resources.
Maritime industry expert Datuk Seri R. Jeyenderan said Malaysia had several advantages for developing the sector, including access to petroleum and palm oil, established storage facilities and ports, as well as its strategic position along major international shipping routes.
“Indonesia is similar to Malaysia. It has petroleum and palm oil, while the Philippines has coconut oil. These are resources that can be explored for the marine-fuel industry,” he said in a statement today.
Jeyenderan, who is chief executive officer of Maritime Network Sdn Bhd and has more than 30 years of experience in the maritime and shipping industry, said disruptions to oil supplies had increased demand for fuel in Asia.
He said this presented an opportunity for Malaysia to expand its role in supplying petroleum and marine fuel to regional markets.
Among the opportunities, he identified the production and supply of Very Low Sulphur Fuel Oil (VLSFO), a marine fuel with low sulphur content.
“We could make more money from oil cargo by doing more of the work locally, including mixing the fuel, storing it and selling it to ships, instead of simply receiving and moving the cargo.
“We have petroleum, palm oil, storage facilities and ports. We should make better use of these resources and create more value for Malaysia,” he said.
Jeyenderan said establishing Malaysia as a regional VLSFO blending and bunkering hub could generate opportunities across fuel storage, trading, shipping, transportation and bunkering.
He said the country’s location along major international shipping routes, with significant vessel traffic passing through its waters, provided an additional advantage.
However, Jeyenderan stressed that clear regulatory and operational guidelines would be necessary to support the development of the sector.
He said petroleum cargo entering Malaysia, particularly consignments declared under Customs Form No. 8 (K8), should be properly recorded and traceable when stored, transferred or blended.
“We need clear rules on what can be done with the cargo after it enters a storage tank, especially when different petroleum products are mixed.
“This is important to protect government revenue and give businesses certainty,” he said.
Jeyenderan said greater clarity in the handling and tracking of petroleum cargo would help provide confidence for businesses while supporting Malaysia’s efforts to develop higher-value activities within the marine-fuel supply chain.
