Malaysia Seeks to Tap into Regional Marine-Fuel Hub Potential
A maritime expert is calling on Prime Minister Datuk Seri Anwar Ibrahim to position Malaysia as a regional marine-fuel hub, leveraging its resources and infrastructure to generate greater economic value. The country has a strategic location along major international shipping routes, with established storage facilities and ports. This makes it well-placed to develop the industry, according to Datuk Seri R. Jeyenderan, CEO of Maritime Network Sdn Bhd.
Jeyenderan pointed out that disruptions to oil supplies have increased demand for fuel in Asia, creating an opportunity for Malaysia to supply more petroleum and marine fuel to countries in the region. He noted that the country has the resources needed to produce and supply Very Low Sulphur Fuel Oil (VLSFO), a cleaner-burning marine fuel.
The expert emphasized that developing Malaysia as a regional VLSFO blending and bunkering hub could create more business opportunities in fuel storage, trading, shipping, transportation, and bunkering. However, he stressed the need for clear rules to ensure petroleum cargo entering Malaysia is properly recorded and tracked when stored, transferred, or blended.
Jeyenderan cited Indonesia and the Philippines as examples of countries with similar resources that have not yet explored their marine-fuel industry potential. He also pointed out that Malaysia's direct tax collection last year reached RM203.991 billion, while its neighboring country collected RM310.38 billion in tax revenue, indicating a significant opportunity for growth.