Latest news with #MohamedSafwanOthman
The Star
7 days ago
- Business
- The Star
Tariffs, uncertainties weigh on shipping in 1H25
KUALA LUMPUR: Malaysia's shipping industry navigated cautiously in the first half of financial year 2025 (1H25), as industry players assessed market conditions and challenges, operating in a complex environment that demanded a measured and deliberate strategy. Ongoing talks between Petroliam Nasional Bhd (PETRONAS) and Petroleum Sarawak Bhd (Petros), relatively stagnant freight rates, and geopolitical tensions affecting maritime routes dominated the sector. However, it was encouraging to note that ports performed well, recording increased cargo volumes. Malaysia Shipowners' Association (Masa) chairman Mohamed Safwan Othman said while the impact of the United States reciprocal tariff rate, set to take effect on Aug 1, is minimal on industry players, the sector continues to monitor potential medium-term consequences depending on decisions made after the 90-day pause. He added that domestic activity remains slow, with close attention paid to the ongoing negotiations between PETRONAS and Petros, which had dragged on for more than two years. 'Prolonged issues have resulted in lower demand in the oil support vessel market in our domestic waters. 'However, PETRONAS and TNB Fuel Sdn Bhd have awarded long-term vessel provision and contract of affreightment contracts, respectively, this year. 'Malaysian shipowners were the majority recipients of both contracts,' he told Bernama when contacted. Mohamed Safwan said other shipping segments were broadly neutral, with freight rates remaining largely stagnant over the past six months. On geopolitical tensions affecting major maritime routes, Mohamed Safwan said apart from a few global players such as MISC Bhd , most Malaysian shipping operators are focused on the regional market, expanding east to China and west to India. 'In terms of cost, delays in key maritime routes such as the Suez Canal and the Strait of Hormuz have increased the dependence on Asean vessels operating within the region. This has led to an uptick in charter rates,' he said. He noted that South-East Asia remains relatively stable, with routing largely unaffected. However, delays are expected in the transhipment of cargo intended for Malaysian consumption. On the International Maritime Organisation (IMO) decarbonisation targets, Mohamed Safwan said Masa members are well aware of the regulations, but the shift towards decarbonisation requires significant effort and substantial funding. 'Regarding the new targets outlined in the IMO net-zero greenhouse gas emissions Strategy 2050, Masa members are currently evaluating (their) options. 'The global maritime industry continues to debate current solutions at the IMO. 'For us, Malaysian shipowners are focusing on improving efficiency within existing regulations. 'This is also because most Malaysian vessels are ageing, and any re-fleeting must consider new alternatives such as alternative fuel or dual-fuel ships,' he added. On the outlook, he said instabilities arising from geopolitical tensions had prompted industry players to capture increased demand from re-routed cargo movements. 'Key risks remain, particularly the escalating tensions between global powers closer to home, such as the rift between China and the United States, and Taiwan's position, which has heightened regional uncertainty. 'These issues affect freedom of movement and stability in South-East Asia.' Transport Minister Anthony Loke Siew Fook recently expressed hope that ongoing negotiations with the United States government, ahead of the potential imposition of a 25% tariff on Malaysia from Aug 1, would help mitigate the impact on the maritime industry and preserve its competitiveness. He said the maritime sector is currently performing well, buoyed by increased trade volumes at ports operated by MMC Corp Bhd and Westports Holdings Bhd . Maritime analyst Nazery Khalid said the sector, which facilitates the bulk of trade among Asean members and between Asean and other regions, plays a critical role. 'The goal of boosting regional connectivity and trade in South-East Asia to make it a global economic powerhouse cannot be achieved without adequate port infrastructure, efficient logistics, strong intra-and inter-regional connectivity, and robust shipping services,' he added. He also stressed the importance of a facilitative regulatory environment, investment incentives, digital and physical infrastructure, and alignment with international standards across the maritime supply chain. 'Sustainability, climate change, competition, intellectual property, consumer protection and taxation must be addressed to ensure cargo moves seamlessly, efficiently, securely and sustainably, while maintaining cost competitiveness and profitability for ports, shipping lines, logistics providers and other stakeholders,' he said.
The Star
22-07-2025
- Business
- The Star
Tariffs, domestic and international uncertainties dominate Malaysia's shipping sector in first half of 2025
KUALA LUMPUR: Malaysia's shipping industry navigated cautiously in the first half of 2025, as industry players assessed market conditions and challenges, operating in a complex environment that demanded a measured and deliberate strategy. Ongoing talks between Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros), relatively stagnant freight rates, and geopolitical tensions affecting maritime routes dominated the sector. However, it was encouraging to note that ports performed well, recording increased cargo volumes. Malaysia Shipowners' Association (MASA) chairman Mohamed Safwan Othman said that while the impact of the United States' reciprocal tariff rate, set to take effect on Aug 1, was minimal on industry players, the sector continued to monitor potential medium-term consequences depending on decisions after the 90-day pause. He added that domestic activity remained slow, with close attention paid to the ongoing negotiations between national oil company Petronas, and Petros, which had dragged on for more than two years. "Prolonged issues have resulted in lower demand in the Oil Support Vessel market in our domestic waters. However, Petronas and TNB Fuel Sdn Bhd have awarded long-term vessel provision and contract of affreightment contracts respectively this year. Malaysian shipowners were the majority recipients of both contracts,' he told Bernama when contacted. Mohamed Safwan said other shipping segments were broadly neutral, with freight rates remaining largely stagnant over the past six months. Geopolitics, Freight Routes and Environmental Targets On geopolitical tensions affecting major maritime routes, Mohamed Safwan said that apart from a few global players such as MISC Bhd , most Malaysian shipping operators focused on the regional market, expanding east to China and west to India. "In terms of cost, delays in key maritime routes such as the Suez Canal and the Strait of Hormuz have increased the dependence on ASEAN vessels operating within the region. This has led to an uptick in charter rates,' he said. He noted that Southeast Asia remained relatively stable, with routing largely unaffected. However, delays were expected in the transhipment of cargo intended for Malaysian consumption. On the International Maritime Organisation (IMO) decarbonisation targets, Mohamed Safwan said MASA members were well aware of the regulations, but the shift towards decarbonisation required significant effort and substantial funding. "Regarding the new targets outlined in the IMO net-zero greenhouse gas emissions Strategy 2050, MASA members are currently evaluating options that have yet to be finalised. "The global maritime industry continues to debate current solutions at the IMO. For us, Malaysian shipowners are focusing on improving efficiency within existing regulations. "This is also because most Malaysian vessels are ageing, and any refleetings must consider new alternatives such as alternative fuel or dual-fuel ships,' he added. On the outlook, he said that instabilities arising from geopolitical tensions had prompted industry players to capture increased demand from rerouted cargo movements. "Key risks remain, particularly the escalating tensions between global powers closer to home, such as the rift between China and the US and Taiwan's position, which has heightened regional uncertainty. "These issues affect freedom of movement and stability in Southeast Asia,' he added. Regional Shipping and ASEAN 2045 Vision Transport Minister Anthony Loke Siew Fook recently expressed hope that ongoing negotiations with the United States government, ahead of the potential imposition of a 25 per cent tariff on Malaysia from Aug 1, would help mitigate the impact on the maritime industry and preserve its competitiveness. He said the maritime sector was currently performing well, buoyed by increased trade volumes at ports operated by MMC Corporation Bhd and Westports Holdings Bhd . Maritime analyst Nazery Khalid said the sector, which facilitates the bulk of trade among ASEAN members and between ASEAN and other regions, plays a critical role. "The goal of boosting regional connectivity and trade in Southeast Asia to make it a global economic powerhouse cannot be achieved without adequate port infrastructure, efficient logistics, strong intra- and inter-regional connectivity, and robust shipping services,' he added. He also stressed the importance of a facilitative regulatory environment, investment incentives, digital and physical infrastructure, and alignment with international standards across the maritime supply chain. "Sustainability, climate change, competition, intellectual property, consumer protection and taxation must be addressed to ensure cargo moves seamlessly, efficiently, securely and sustainably, while maintaining cost competitiveness and profitability for ports, shipping lines, logistics providers and other stakeholders,' he said. Nazery cautioned that while Southeast Asia already had many success factors in place, more improvements were needed at both national and regional levels. "For ASEAN 2045 to meet its vision of becoming a globally competitive economic region, the region's ports, some of which already rank among the world's best, must not be complacent. They must continue to improve their capacity, efficiency, productivity and service delivery. 'ASEAN 2045: Our Shared Future' is the successor to 'ASEAN 2025: Forging Ahead Together', and will serve as a long-term strategic blueprint for the region over the next two decades. He said ASEAN member states must continue investing in trade, transport and digital infrastructure amid rising competition from other regions. This is needed to attract cargo, foreign investment, and global shipping lines. "Seaports act as vital trade gateways and facilitators of regional growth. The logistics services supporting port operations and regional trade are critical to Southeast Asia's integration into the global supply chain,' Nazery concluded. - Bernama
Malaysian Reserve
22-07-2025
- Business
- Malaysian Reserve
Tariffs, domestic and international uncertainties dominate Malaysia's shipping sector in first half of 2025
MALAYSIA'S shipping industry navigated cautiously in the first half of 2025, as industry players assessed market conditions and challenges, operating in a complex environment that demanded a measured and deliberate strategy. Ongoing talks between Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros), relatively stagnant freight rates, and geopolitical tensions affecting maritime routes dominated the sector. However, it was encouraging to note that ports performed well, recording increased cargo volumes. Malaysia Shipowners' Association (MASA) chairman Mohamed Safwan Othman said that while the impact of the United States' reciprocal tariff rate, set to take effect on Aug 1, was minimal on industry players, the sector continued to monitor potential medium-term consequences depending on decisions after the 90-day pause. He added that domestic activity remained slow, with close attention paid to the ongoing negotiations between national oil company Petronas, and Petros, which had dragged on for more than two years. 'Prolonged issues have resulted in lower demand in the Oil Support Vessel market in our domestic waters. However, Petronas and TNB Fuel Sdn Bhd have awarded long-term vessel provision and contract of affreightment contracts respectively this year. Malaysian shipowners were the majority recipients of both contracts,' he told Bernama when contacted. Mohamed Safwan said other shipping segments were broadly neutral, with freight rates remaining largely stagnant over the past six months. Geopolitics, Freight Routes and Environmental Targets On geopolitical tensions affecting major maritime routes, Mohamed Safwan said that apart from a few global players such as MISC Bhd, most Malaysian shipping operators focused on the regional market, expanding east to China and west to India. 'In terms of cost, delays in key maritime routes such as the Suez Canal and the Strait of Hormuz have increased the dependence on ASEAN vessels operating within the region. This has led to an uptick in charter rates,' he said. He noted that Southeast Asia remained relatively stable, with routing largely unaffected. However, delays were expected in the transhipment of cargo intended for Malaysian consumption. On the International Maritime Organisation (IMO) decarbonisation targets, Mohamed Safwan said MASA members were well aware of the regulations, but the shift towards decarbonisation required significant effort and substantial funding. 'Regarding the new targets outlined in the IMO net-zero greenhouse gas emissions Strategy 2050, MASA members are currently evaluating options that have yet to be finalised. 'The global maritime industry continues to debate current solutions at the IMO. For us, Malaysian shipowners are focusing on improving efficiency within existing regulations. 'This is also because most Malaysian vessels are ageing, and any refleetings must consider new alternatives such as alternative fuel or dual-fuel ships,' he added. On the outlook, he said that instabilities arising from geopolitical tensions had prompted industry players to capture increased demand from rerouted cargo movements. 'Key risks remain, particularly the escalating tensions between global powers closer to home, such as the rift between China and the US and Taiwan's position, which has heightened regional uncertainty. 'These issues affect freedom of movement and stability in Southeast Asia,' he added. Regional Shipping and ASEAN 2045 Vision Transport Minister Anthony Loke Siew Fook recently expressed hope that ongoing negotiations with the United States government, ahead of the potential imposition of a 25 per cent tariff on Malaysia from Aug 1, would help mitigate the impact on the maritime industry and preserve its competitiveness. He said the maritime sector was currently performing well, buoyed by increased trade volumes at ports operated by MMC Corporation Bhd and Westports Holdings Bhd. Maritime analyst Nazery Khalid said the sector, which facilitates the bulk of trade among ASEAN members and between ASEAN and other regions, plays a critical role. 'The goal of boosting regional connectivity and trade in Southeast Asia to make it a global economic powerhouse cannot be achieved without adequate port infrastructure, efficient logistics, strong intra- and inter-regional connectivity, and robust shipping services,' he added. He also stressed the importance of a facilitative regulatory environment, investment incentives, digital and physical infrastructure, and alignment with international standards across the maritime supply chain. 'Sustainability, climate change, competition, intellectual property, consumer protection and taxation must be addressed to ensure cargo moves seamlessly, efficiently, securely and sustainably, while maintaining cost competitiveness and profitability for ports, shipping lines, logistics providers and other stakeholders,' he said. Nazery cautioned that while Southeast Asia already had many success factors in place, more improvements were needed at both national and regional levels. 'For ASEAN 2045 to meet its vision of becoming a globally competitive economic region, the region's ports, some of which already rank among the world's best, must not be complacent. They must continue to improve their capacity, efficiency, productivity and service delivery. 'ASEAN 2045: Our Shared Future' is the successor to 'ASEAN 2025: Forging Ahead Together', and will serve as a long-term strategic blueprint for the region over the next two decades. He said ASEAN member states must continue investing in trade, transport and digital infrastructure amid rising competition from other regions. This is needed to attract cargo, foreign investment, and global shipping lines. 'Seaports act as vital trade gateways and facilitators of regional growth. The logistics services supporting port operations and regional trade are critical to Southeast Asia's integration into the global supply chain,' Nazery concluded. — BERNAMA
Barnama
22-07-2025
- Business
- Barnama
Tariffs, Domestic And International Uncertainties Dominate Malaysia's Shipping Sector In First Half Of 2025
Ongoing talks between Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros), relatively stagnant freight rates, and geopolitical tensions affecting maritime routes dominated the sector. KUALA LUMPUR, July 22 (Bernama) – Malaysia's shipping industry navigated cautiously in the first half of 2025, as industry players assessed market conditions and challenges, operating in a complex environment that demanded a measured and deliberate strategy. He added that domestic activity remained slow, with close attention paid to the ongoing negotiations between national oil company Petronas, and Petros, which had dragged on for more than two years. Malaysia Shipowners' Association (MASA) chairman Mohamed Safwan Othman said that while the impact of the United States' reciprocal tariff rate, set to take effect on Aug 1, was minimal on industry players, the sector continued to monitor potential medium-term consequences depending on decisions after the 90-day pause. However, it was encouraging to note that ports performed well, recording increased cargo volumes. Mohamed Safwan said other shipping segments were broadly neutral, with freight rates remaining largely stagnant over the past six months. 'Prolonged issues have resulted in lower demand in the Oil Support Vessel market in our domestic waters. However, Petronas and TNB Fuel Sdn Bhd have awarded long-term vessel provision and contract of affreightment contracts respectively this year. Malaysian shipowners were the majority recipients of both contracts,' he told Bernama when contacted. Geopolitics, Freight Routes and Environmental Targets On geopolitical tensions affecting major maritime routes, Mohamed Safwan said that apart from a few global players such as MISC Bhd, most Malaysian shipping operators focused on the regional market, expanding east to China and west to India. 'In terms of cost, delays in key maritime routes such as the Suez Canal and the Strait of Hormuz have increased the dependence on ASEAN vessels operating within the region. This has led to an uptick in charter rates,' he said. He noted that Southeast Asia remained relatively stable, with routing largely unaffected. However, delays were expected in the transhipment of cargo intended for Malaysian consumption. On the International Maritime Organisation (IMO) decarbonisation targets, Mohamed Safwan said MASA members were well aware of the regulations, but the shift towards decarbonisation required significant effort and substantial funding. 'Regarding the new targets outlined in the IMO net-zero greenhouse gas emissions Strategy 2050, MASA members are currently evaluating options that have yet to be finalised. 'The global maritime industry continues to debate current solutions at the IMO. For us, Malaysian shipowners are focusing on improving efficiency within existing regulations. 'This is also because most Malaysian vessels are ageing, and any refleetings must consider new alternatives such as alternative fuel or dual-fuel ships,' he added. On the outlook, he said that instabilities arising from geopolitical tensions had prompted industry players to capture increased demand from rerouted cargo movements. 'Key risks remain, particularly the escalating tensions between global powers closer to home, such as the rift between China and the US and Taiwan's position, which has heightened regional uncertainty. 'These issues affect freedom of movement and stability in Southeast Asia,' he added. Regional Shipping and ASEAN 2045 Vision Transport Minister Anthony Loke Siew Fook recently expressed hope that ongoing negotiations with the United States government, ahead of the potential imposition of a 25 per cent tariff on Malaysia from Aug 1, would help mitigate the impact on the maritime industry and preserve its competitiveness. He said the maritime sector was currently performing well, buoyed by increased trade volumes at ports operated by MMC Corporation Bhd and Westports Holdings Bhd. Maritime analyst Nazery Khalid said the sector, which facilitates the bulk of trade among ASEAN members and between ASEAN and other regions, plays a critical role. 'The goal of boosting regional connectivity and trade in Southeast Asia to make it a global economic powerhouse cannot be achieved without adequate port infrastructure, efficient logistics, strong intra- and inter-regional connectivity, and robust shipping services,' he added. He also stressed the importance of a facilitative regulatory environment, investment incentives, digital and physical infrastructure, and alignment with international standards across the maritime supply chain. 'Sustainability, climate change, competition, intellectual property, consumer protection and taxation must be addressed to ensure cargo moves seamlessly, efficiently, securely and sustainably, while maintaining cost competitiveness and profitability for ports, shipping lines, logistics providers and other stakeholders,' he said. Nazery cautioned that while Southeast Asia already had many success factors in place, more improvements were needed at both national and regional levels. 'For ASEAN 2045 to meet its vision of becoming a globally competitive economic region, the region's ports, some of which already rank among the world's best, must not be complacent. They must continue to improve their capacity, efficiency, productivity and service delivery. 'ASEAN 2045: Our Shared Future' is the successor to 'ASEAN 2025: Forging Ahead Together', and will serve as a long-term strategic blueprint for the region over the next two decades. He said ASEAN member states must continue investing in trade, transport and digital infrastructure amid rising competition from other regions. This is needed to attract cargo, foreign investment, and global shipping lines. 'Seaports act as vital trade gateways and facilitators of regional growth. The logistics services supporting port operations and regional trade are critical to Southeast Asia's integration into the global supply chain,' Nazery concluded. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial
New Straits Times
20-05-2025
- Business
- New Straits Times
Malaysia shipowners urge dialogue on port tariff hike impact
KUALA LUMPUR: The Malaysia Shipowners' Association (MASA) has called for discussions through the Port Consultative Committee (PCC) regarding the government's recent proposal to implement a 30 per cent increase in port tariffs and the introduction of a new port charging framework. The association's chairman, Mohamed Safwan Othman, said the proposed changes might introduce unexpected cost burdens across the maritime and logistics value chain, ultimately affecting industry stability and national trade competitiveness. He said all tariff-related matters should be discussed via a formal consultative platform to ensure all industry voices are heard, from shipowners and hauliers to logistics providers, port users, and manufacturers. In a statement, Mohamed Safwan said the proposals must be executed responsibly through transparent justification, phased implementation, and, most importantly, structured engagement with all stakeholders. "Changes on port tariffs and the introduction of a new port charging framework may introduce unexpected cost burdens across the maritime and logistics value chain, ultimately affecting industry stability and national trade competitiveness," he said. Mohamed Safwan was responding to the proposals under the New Guidelines on Port Tariff Non-Gazetted Tariff (NGT) announced by Penang Port Sdn Bhd. He noted that the proposed changes outline a wide-ranging update to port charges, including new fee categories and adjustments that affect marine services, port dues, pilotage, towage, and container handling. "The introduction of new fees such as environmental protection charges, tugboat standby rates, and shifting charges must be supported by transparent cost rationale and performance benchmarks, he said. Mohamed Safwan emphasised that any increase in cost must come with demonstrable improvement in port services, which includes reduced waiting and turnaround times, more efficient container handling, streamlined gate operations, and improved digital systems for tracking and billing. "Without such clarity, stakeholders may perceive these charges as arbitrary and disconnected from the actual services delivered. Operators must see tangible value in return for higher tariffs," he said. Mohamed Safwan also stressed the need for a uniform application of the new tariff structure across all Malaysian ports, as differing interpretations or inconsistent rollout would only create confusion and administrative burdens for shipping lines and port users. "Therefore, for clear guidelines and consistent enforcement to avoid market distortions," he added. Lastly, Mohamed Safwan urged that any additional revenue generated from the tariff increases be transparently reinvested into upgrading port infrastructure, improving digitalisation, integrating multimodal transport systems, and accelerating the adoption of green port technologies. "MASA insists that the benefits of this policy must be visible and equitable to all who contribute to the national logistics network," he said.
