Charting Malaysia's course in the blue economy
Despite the importance of the blue economy, which relates to maritime resources, we tend to overlook it in favour of other sectors such as manufacturing, construction and agriculture.
With our reliance on trade, fisheries, ports and shipping, the recognition of the blue economy is a natural progression of efforts to seek new sources of economic growth for the nation.
That fact that we are at the crossroads of sea trading routes between the East and West speaks volumes about the importance of maritime activities to our economy.
Interestingly, our major trading partner, China, has been giving a lot of attention to maritime activities, such as shipping and port operations.
Shipping lanes carry the lion's share of world trade as it is much cheaper than using air or rail to transport goods across continents. A host of industries support shipping, such as banking and insurance, bunkering, provisioning and container services.
Shipping is also connected with the land transport system as part of the logistics chain.
Malaysia has also other interests in the maritime domain, as much of its oil production is from offshore sources in Terengganu, Kelantan, Sabah and Sarawak.
Additionally, there are beautiful tourism islands, such as Langkawi, Tioman, Sipadan and Perhentian.
These must be promoted and their connections with mainland jetties or ports improved.
The rising interest in cruise tourism is another sector that should be explored and developed.
To protect these vital economic sectors, there must be adequate patrols by security forces.
The assets of the Royal Malaysian Navy, Malaysian Maritime Enforcement Agency and marine police must be upgraded so that they are better able to curb incursions into our waters and keep pirates and smugglers at bay.
Certainly, our blue economy must be developed with regional partners in mind, particularly Indonesia and Singapore.
There may be complementarities to be studied and competition to be managed so that the whole region benefits.
The three countries should also study how to extract further benefits from the Strait of Malacca, where over 94,000 ships pass through a year, making it one of the most crowded maritime lanes in the world.
The strait is bounded by Sumatra to the west and Peninsular Malaysia to the east, with Singapore at its southern end. All three countries should collaborate to make the strait safe so that that trade can flourish. The strong bond of Asean can be an impetus for enhanced cooperation in this area.
Hence, it is timely that the government and business groups work together to further develop economic and employment opportunities from our maritime resources.
Perhaps a strategic long-term plan on the blue economy can be produced for the benefit of potential investors.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
32 minutes ago
- The Star
13MP boost for affordable housing
PETALING JAYA: The government's announcement under the 13th Malaysia Plan (13MP) to develop one million affordable housing units between 2026 and 2035, will help ease pent-up demand and improve homeownership prospects. Zerin Properties chief executive officer Previn Singhe said the government's target of building one million affordable homes over a 10-year period is both 'bold and ambitious'. 'Beyond numbers, success will depend on building in the right places, close to jobs, transport and services, as well as ensuring these homes are designed to genuinely meet the needs of B40 and M40 families. 'This is so they do not risk becoming future overhang statistics,' he told StarBiz. Previn said it is imperative that there are 'supporting measures' to ensure this plan succeeds. 'Measures such as the improvement of existing affordable housing financing schemes, including the expansion of the rent-to-own and housing credit guarantee programmes, will be critical in widening access to homeownership for first-time and lower-income buyers. 'At the same time, making schools a mandatory component of large-scale housing projects will enhance liveability and strengthen long-term community value. 'Together, these measures push housing delivery beyond bricks and mortar –towards building integrated, future-ready communities.' Olive Tree Property Consultants founder and chief executive officer Samuel Tan also said the move by the government to build one million affordable homes under the 13MP was 'ambitious'. 'The government remains committed to ensuring access to quality, affordable and inclusive housing. As of this year, 180,000 housing units have been completed, with another 235,000 currently under construction.' He noted that structural issues, such as the mismatch between housing supply and demand, as well as property prices that remain beyond the reach of many, continue to pose challenges. 'Selection of locations and developers are equally important. Achieving one million houses is only a quantitative target. What is more important is the qualitative target.' TA Research said the planned increase in affordable housing supply, particularly in strategic locations, should help ease pent-up demand and improve homeownership prospects for lower- and middle-income households. 'On the demand side, improved financing mechanisms, including tiered interest rates and flexible tenure structures, are expected to enhance affordability, especially for first-time buyers. 'We are also encouraged by the government's move to empower a central housing agency to lead planning and delivery efforts.' The research house said this could significantly reduce inefficiencies and eliminate duplication of efforts between federal and state bodies, paving the way for more targeted and effective execution. Tan noted that Malaysia faces a significant challenge in providing affordable housing for its citizens, with house prices often exceeding what many can afford. 'This affordability crisis is driven by various factors, including rising land costs, construction costs and a lack of sufficient affordable housing supply. 'There is also a discrepancy between the types of housing being built and the actual needs of the population, with an oversupply of high-end properties and a shortage of affordable options.' This imbalance, said Tan, is exacerbated by factors like income inequality and variations in housing preferences across different demographics. Moreover, he said the construction industry in Malaysia needs to embrace modern technologies and innovative building methods to improve efficiency, reduce costs and enhance the quality of housing. 'The adoption of the Industrialised Building System (IBS), for example, can help accelerate construction and lower costs, making housing more accessible.' He added that there should also be a consolidation of housing agencies to initiate and monitor housing development. 'Currently, multiple agencies are doing the same job and this increases the cost and causes confusion among the stakeholders,' Tan said. To ensure that initiatives under the 13MP come to fruition, Previn emphasised that there is a need to 'prioritise execution over announcements.' 'Malaysia's development plans have historically struggled with delivery gaps. To avoid repeating this pattern, we must establish clear ownership and accountability structures at both federal and state levels. 'There is also a need to ensure transparent timelines, key performance indicators and public reporting mechanisms for all flagship initiatives.' Previn also said there is a need to enable stronger inter-agency coordination, particularly between planning units, regulators and implementation bodies. 'Without robust execution frameworks, even the most well-crafted plans risk stalling.' Another significant structural shift that has been proposed under the 13MP is the mandatory adoption of the build-then-sell (BTS) model for housing development - to be enforced through amendments to the Housing Development Act. TA Research noted that while the intention is to curb project abandonment and enhance buyer protection, it added that the move introduces substantial funding and working capital risks for developers. 'Under the 10:90 BTS structure, developers must complete construction before receiving the bulk of sales proceeds. This could delay new launches and deter participation from smaller players with limited balance sheet strength or constrained access to project financing. 'In our view, this would accelerate market consolidation and widen the competitive gap in favour of well-capitalised players.' That said, the research house said it does not expect the implementation to be immediate. 'Given that it requires legislative amendments, the process is likely to involve multi-stakeholder consultations and industry engagement. A rushed rollout would be disruptive, and we believe policymakers are aware of the potential implications. 'We anticipate a phased approach that balances buyer protection with developer viability, potentially through exemptions, transitional support, or segmentation by developer scale,' it said. Previn also concurred that the BTS model is a major structural change that enhances consumer protection and market credibility, which reduces risks of poor-quality or abandoned projects. 'It will also accelerate IBS adoption, improving efficiency and delivery timelines. 'However, smaller, highly leveraged developers may face liquidity pressures, longer project cycles and higher financing costs, unless accompanied by supportive financing mechanisms or phased implementation of BTS.' Without sufficient large, capable IBS suppliers, Previn warned that there would be bottleneck risks that would push up costs and erode affordability. Tan meanwhile noted that currently, developers are allowed to sell houses before they are built under the 'sell-then-build' model. He noted that making the BTS model mandatory will be difficult. 'There are many obvious merits for this initiative. But it carries several problematic issues. Only the deep pocket developers can afford to implement this scheme. 'It will then be an uneven playing field for the start-ups and smaller development companies.' Tan said the additional holding cost will be passed on to the end-purchasers, making house prices more expensive. 'This will jeopardise our Home Ownership Programme. On the other hand, it will ensure that abandoned projects are curbed. End-purchasers buy what they see ensuring that quality is maintained. 'We opine that this BTS model should not be mandatory. Developers are given the options to choose the most appropriate models. The authorities must monitor their performance to ensure quality and timely delivery,' he said. Previn said many of the 13MP's strategies such as the BTS model and affordable housing targets are conceptually strong, but 'must be grounded in market data and developer capacity.' 'Enforcing BTS across the board without a phased rollout could tighten housing supply and raise costs in the short term 'Additionally, affordable housing should not just be 'affordable to build' but also meet the preferences and needs of the target buyers,' he said.
New Straits Times
11 hours ago
- New Straits Times
Sipitang MP hopeful post-mortem will shed light on student's death
KOTA KINABALU: Sipitang MP Datuk Matbali Musah is hopeful that the post-mortem on the late Zara Qairina Mahathir, carried out today at Queen Elizabeth I Hospital (QEH1), will shed light on the circumstances surrounding her death. "We are hoping that today will provide clarity on all aspects of this case," he told reporters at the QEH1 compound. He urged the public not to speculate on social media regarding the matter. "We hope that netizens and the public will refrain from making or sharing unverified claims on social media. We do not want such actions to cause confusion or worsen the situation," he said. Responding to allegations that certain politicians or leaders had not shown support for the case, Matbali stressed that this was untrue. "Leaders at all levels have given their full support. In fact, the prime minister himself has been in contact with the home minister and the attorney-general to ensure that the investigation is conducted transparently. "There will be no compromise for anyone involved. This is a case that we must ensure is handled openly and fairly," he said. He also expressed gratitude to the government, particularly the Ministry of Education, the Home Ministry, the police and the Health Ministry for their attention to the case. On the #JusticeForZara solidarity event scheduled for this evening in Sipitang, Matbali said he would be unable to attend as he needed to return to Kuala Lumpur for the debate on the 13th Malaysia Plan in Parliament. However, he hopes that everything will proceed smoothly, including the investigation into Zara Qairina's case, as not only leaders but also netizens were praying and hoping for justice to be served for her. Zara, a Form One student at a religious school in Papar, Sabah, was found unconscious after allegedly falling from the dormitory building. She was pronounced dead at Queen Elizabeth I Hospital at 1.07pm on July 17. The 13-year-old student's body arrived at the hospital at 10.30pm yesterday after being exhumed from the Tanjung Ubi Muslim Cemetery in Sipitang at 7.30pm. It was sent to the Radiology Department for a CT scan before being kept at the Medical Forensics Department. Four pathologists, including one from Peninsular Malaysia, conducted the post-mortem on Zara Qairina Mahathir.
New Straits Times
11 hours ago
- New Straits Times
DAP vice-chairman challenges opposition to table no-confidence motion
KUALA LUMPUR: DAP vice-chairman Syahredzan Johan has accused the opposition of stirring up talk of a no-confidence vote against Prime Minister Datuk Seri Anwar Ibrahim, despite the motion having yet to be tabled in the Dewan Rakyat. The Bangi member of parliament, in a Facebook post, challenged the opposition to table the motion in the Dewan Rakyat without further excuses, to prove they are not merely engaging in empty talk. He said the opposition's current approach of only voicing the call for a no-confidence vote outside the Dewan Rakyat clearly reflects their lack of courage and shows they are speaking only to appease their supporters. "Table the motion, don't just talk big. The people are tired of it. It has been weeks since the opposition's rally, with claims that they would table the motion. "Until now, nothing has happened. Various excuses have been put forward. "It is clear that they do not have the courage or the numbers, and are only speaking to satisfy their supporters who are losing faith in the opposition leadership," he said. He was commenting on Pas information chief Ahmad Fadhli Shaari's call for the government to allow a secret ballot to test the Prime Minister's actual support in the Dewan Rakyat. Previously, Perikatan Nasional (PN) had hinted at submitting a motion of no confidence against the Prime Minister. However, last week, opposition leader Datuk Seri Hamzah Zainudin stated that PN had yet to decide on whether to proceed with the no-confidence motion. Hamzah reportedly said that whether or not the opposition would table the motion depended solely on the decision of the Parliamentary Rights and Privileges Committee. PN chief whip Datuk Seri Takiyuddin Hassan had submitted a motion to Dewan Rakyat Speaker Tan Sri Johari Abdul to refer Anwar to the Parliamentary Rights and Privileges Committee over his remarks on Tun Dr Mahathir Mohamad and the Pulau Batu Puteh issue. At the same time, Syahredzan also questioned Fadhli's request for the no-confidence vote to be conducted in secret when the motion itself had yet to be tabled in the Dewan Rakyat. He said his side also questioned the relevance of linking the two motions — the no-confidence vote and the Pulau Batu Puteh issue — which he viewed as unrelated. "Previously, the opposition leader said the no-confidence motion would depend on another motion unrelated to it. "Now YB Fadhli is challenging the government to allow a secret no-confidence vote against the Prime Minister? If the opposition hasn't even tabled the motion, how can we determine whether the vote will be secret or not?" he said.
