Introduction

This paper traces the developments leading to Part IIA (Registry), Part IIB (The Domestic Shipping Licensing Board) and Part IIC (Malaysia International Ship Registry) in their current state. The said developments, in relation to the said three parts, includes both amendments and territorial extensions of their application. The relevance of these parts to domestic shipping licence has been covered in another article, which will not be repeated here.[1]

History and Geography

Federation of Malaya comprised two of the Straits Settlements, namely the states of Penang and Malacca, and the nine Malay states, namely Kedah, Kelantan, Johor, Negeri Sembilan, Pahang, Perlis, Perak, Selangor, and Terengganu.

Merchant Shipping Ordinance 1952 (“MSO 1952”) was enacted during the British ruling of the Federation of Malaya. It was brought into force for the states of Penang and Malacca on 13 February 1953.[2] Then, it was extended (save for the then s 473(4)(a) of the Ordinance) to the rest of the Federation of Malaya, that is the nine other states, in two tranches, on 1 March 1953[3] and 1 August 1953.[4]

Federation of Malaya became an independent sovereign country within the Commonwealth on 31 August 1957[5] at which instance the existing laws including the MSO 1952 continued to apply.[6]

On 16 September 1963, Sabah, Sarawak and Singapore were united with the Federation of Malaya to form Malaysia.[7] Sabah, Sarawak and Singapore became states in the newly formed Malaysia.

On 25 June 1964, by Modification of Laws (Merchant Shipping) (Malaysia Registry) Order 1964, a few sections of the MSO 1952 were extended to Sabah, Sarawak and Singapore.[8] These sections included ss 11 and 12.

On 9 August 1965, Singapore became an independent sovereign state separate from and independent of Malaysia.[9]

On 1 February 1974, Kuala Lumpur, which was then within the state of Selangor and the capital of Malaya, seceded from Selangor and became a Federal Territory of Malaysia – the first Federal Territory of Malaysia.[10] The laws in force there immediately before the secession continued to apply to Kuala Lumpur.[11] Hence, the MSO 1952, in essentially its entirety, continued to have effect in Kuala Lumpur.

On 16 April 1984, Labuan, which was an island town in the state of Sabah, seceded from Sabah and became the second Federal Territory of Malaysia.[12] The laws in force in Sabah immediately before the secession continued to apply to Labuan with some modifications until they are repealed, amended or replaced by Parliament of Malaysia.[13] Hence, the extension of ss 11 and 12 MSO 1952 to Sabah continued to have effect in Labuan.

The geographical area comprising the 11 states that made up the Federation of Malaya, Kuala Lumpur and Putrajaya[14] is known as “Malaya”, Peninsular Malaysia” and “West Malaysia”. The geographical area comprising Sabah, Sarawak and Labuan is known as “East Malaysia”.

By Merchant Shipping (Amendment and Extension) Act 1977,[15] which was brought into force by 1 June 1991 throughout Malaysia[16] (including Sabah and Sarawak), Part IIA (Registry) and Part IIB (The Domestic Shipping Licencing Board) were introduced into the MSO 1952 to substitute the then Part II there. These new parts contained, respectively ss 11-65 and 65A-65Q and the Fifth Schedule referred to in the then s 65B(5). Any provisions then in force in Sabah and Sarawak corresponding to the Part IIA and Part IIB were repealed. The above said 1964 Order, which extended a few sections of the MSO 1952 including ss 11 and 12 to Sabah, Sarawak and Singapore, was also repealed, having extended the newly introduced Part IIA and Part IIB in their entirety to Sabah and Sarawak. These amendments and the extension applied also to Labuan as the Act was applicable “throughout Malaysia”.

Merchant Shipping (Amendment and Extension) Act 1984, which was applicable throughout Malaysia (including Sabah, Sarawak and Labuan) and came into force on 2 June 1991, made numerous amendments to Part IIA and Part IIB MSO 1952, including ss 11 and 12 in Part IIA and ss 65A-65M in Part IIB and introduction of s 65KA (Prohibition of non-Malaysian ships to engage in domestic shipping) and ss 65R-65T in Part IIB. Sections 42 and 43 of the 1984 Act respectively amended the Merchant Shipping Ordinance 1960 of Sabah and the Merchant Shipping Ordinance 1960 of Sarawak by declaring that “Malaysian ship” should have the same meaning as in the MSO 1952, which is essentially a reference to s 11 MSO 1952. Further, s 46 declared that any reference to “Ordinance” in the Sabah and Sarawak Ordinances should be construed as including a reference to the MSO 1952 in relation to the extensions (of Part IIA and Part IIB) to Sabah and Sarawak made by the 1977 Act. These amendments and the extension applied also to Labuan as the Act was applicable “throughout Malaysia”.

By Merchant Shipping (Amendment) Act 1994, which came into force by 1 April 1999, Part IIB MSO 1952 was amended, which included the addition of the new section 65U (Exemption by Minister). The amendments to Part IIB should apply throughout Malaysia as the Part IIB was already extended throughout Malaysia by previous extensions.

By Merchant Shipping (Amendment) Act 1998, section 65A MSO 1952 was amended which came into force on 1 January 2001[17] and the new Part IIC (Malaysia International Ship Registry) was introduced which came into force on 17 August 2006.[18] There was no territorial limitation to the application of the amendments, hence the amendments should follow the territorial extent of then sections or parts before the amendments were made. Thus, the amendment to s 65A should apply throughout Malaysia.

As to Part IIC, it is likely that its territorial extent was, at that time, limited to Peninsular Malaysia since it was a newly inserted part and could only follow the extent of application of MSO 1952 in general. However, extent of application is unlikely to be an issue since Part IIC is for regulation of the ship registry created by that part, wherever the registry may be situated. That part gave the Minister the power to nominate the place of that registry,[19] and the Minister nominated Labuan, to which the MSO 1952, in its entirety, was extended by Merchant Shipping (Amendment and Extension) Act 2007,[20] which came into force on 24 December 2008. By the 2007 Act, further, the Merchant Shipping Ordinance 1960 of Sabah ceased to apply to Labuan.

In the meantime, on 1 February 2001, an area within the state of Selangor seceded from Selangor and became a Federal Territory known as Putrajaya – the third Federal Territory of Malaysia.[21] The laws in force there immediately before the secession continued to apply to Putrajaya.[22] Hence, the MSO 1952, in its entirety, continued to apply to Putrajaya.

Current status

The current status is that the MSO 1952, in its entirety, applies to Peninsular Malaysia (including Kuala Lumpur and Putrajaya) and Labuan. Part IIA and Part IIB applies throughout Malaysia. Part IIC applies to Peninsular Malaysia (including Kuala Lumpur and Putrajaya) and Labuan.

[1] Arun Kasi, Domestic Shipping Licence for foreign ships in Malaysia – the “cabotage” rule, 25 October 2024 – accessible via https://arunkasico.com/bulletin-mlb-23-2024.

[2] SI 195/1953 The Merchant Shipping (Confirmation of Legislation) (Federation of Malaya) Order 1953 (UK).

[3] LN 72/1953.

[4] LN 311/1953.

[5] Federation of Malaya Independence Act 1957 (UK) and SI 1957/1953 The Federation of Malaya Independence Order in Council 1957 (UK).

[6] Sec 2 of the above said 1957 Act.

[7] Malaysia Act 1963 (UK).

[8] LN191/1964.

[9] Singapore Act 1966 (UK).

[10] Constitution (Amendment) (No. 2) Act 1973 (Act A206) as amended by Constitution (Amendment) (No. 2) Act 1973 (Act A335), both of which came into force on 1 February 2024.

[11] Sec 6 of the above said Act A206.

[12] Constitution (Amendment) (No. 2) Act 1984 (A585) and Federal Territory of Labuan Enactment 1984, both of which came into force on 16 April 1984.

[13] Sec 6 of the above said Act A585 and paragraph 6 of the Schedule to the above said 1984 Enactment.

[14] The subsequent of Putrajaya is dealt with later in this paper.

[15] As amended by Merchant Shipping (Amendment and Extension) (Amendment) Act 1978.

[16] PU(B) 280/1991.

[17] PU(B) 463/2000.

[18] PU(B) 222/2006.

[19] Sec. 66A MSO 1952.

[20] Sections 12 and 13.

[21] Constitution (Amendment) Act 2001, which came into force on 1 February 2024.

[22] Sec 6 of the above said 2001 Act.