At a time when many offshore support vessel ("OSV")
owning companies are struggling due to the global fall in oil
prices and over capacity, those owners with partnerships across the
region which allow them access to cabotage areas are perhaps faring
better than their competitors. Malaysia in particular is a cabotage
area that is still viewed by some as an area of potential
growth.
Malaysia consists of three federal territories and thirteen
states located in Peninsula Malaysia (bordering Thailand) and East
Malaysia in the island of Borneo (bordering Brunei and
Indonesia). On 1 January 1980, the Government of Malaysia
implemented a national cabotage policy with an aim to protect and
promote a strong national shipping-owning industry. The Merchant
Shipping Ordinance 1952 ("MSO") was amended and Part IIB
was introduced.
