KUALA LUMPUR: MALAYSIA is charting a bold new course for its maritime future, anchored by the Malaysia Maritime Masterplan 2026–2040, a long-term strategy to revitalise the shipping industry, upgrade port infrastructure, and unlock the full potential of the nation's blue economy.

Under this transformative blueprint, the marine fuel supply industry is projected to surge to RM19.4 billion by 2030, fuelled by a new wave of shipyard upgrades, port expansions, and the creation of specialised blue economy hubs across key coastal states, including Sabah, Terengganu, Perak, and Kelantan.

Economists and industry analysts believe the timing of the masterplan could not be better. As global supply chains undergo realignment and shipping routes shift in response to geopolitical and economic changes, Malaysia's maritime assets are gaining renewed strategic importance.

According to the Shipping Association Malaysia (SAM), the country's strategic position along the Straits of Malacca – one of the world's busiest trade corridors – coupled with its competitive energy costs, robust logistics ecosystem, and well-established ports, gives Malaysia a solid foundation to capture a larger share of regional maritime trade.

An industry expert noted that the maritime strategy is closely aligned with the Thirteenth Malaysia Plan (13MP), which emphasises regional rebalancing, infrastructure connectivity, and industrial upgrading.

"The masterplan is not just about strengthening Malaysia's maritime capabilities. It's about driving balanced, inclusive growth across coastal regions and positioning Malaysia as a key player in the global maritime value chain," the expert said.

For Orkim Bhd, one of Malaysia's leading tanker operators, this national maritime agenda aligns seamlessly with its own growth trajectory.

Chief executive officer Captain Cheah Sin Bi said as Malaysia navigates forward under the new masterplan, Orkim's growth story stands as a testament to how national ambition and corporate purpose can move in tandem, propelling both the company and the country toward a more dynamic, sustainable, and globally competitive maritime future.

His story mirrors the evolution of Malaysia's maritime sector. "From a single vessel in 2009 to 18 vessels in its current fleet, Orkim's journey reflects Malaysia's broader maritime progress – steady, strategic, and anchored in purpose."

Sailing Towards IPO and Growth

After 17 years of consistent growth, the 100 per cent Bumiputera-owned company, backed by government-linked private equity firm Ekuiti Nasional Bhd (Ekuinas), is now preparing for its next major milestone – a Main Market debut on Bursa Malaysia, following the submission of its initial public offering (IPO) application in July this year.

"We've submitted our application to the Securities Commission and appointed our advisers. The IPO is not just about fundraising; it's about transparency, growth, and strengthening confidence in Malaysia's maritime industry," Captain Cheah told Business Times.

Between 2025 and 2027, Orkim plans to add five additional tankers to its fleet: one second-hand medium-range (MR) chemical tanker was acquired in October 2025, and four clean petroleum product (CPP) and chemical tankers, two of which are already under construction and expected to be delivered in 2027. The fleet expansion will be financed through a combination of IPO proceeds, borrowings, and internal funds.

"We've spent around RM1 billion in capital expenditure since 2009, financed through various sources, including commercial loans and our recent sukuk. Future investments will depend on, amongst others, the size and type of vessels," he said.

Captain Cheah led fleet renewal and digitalisation efforts, introducing real-time tracking and data-driven systems that boosted efficiency, safety, and compliance, helping Orkim maintain about 90 per cent utilisation from 2022 to 2024 despite post-pandemic challenges.

According to the latest statistics available in 2024, with 14 CPP vessels totalling 134,684 deadweight tonnes (DWT) and one medium-range tanker with 48,005 DWT, Orkim commands a 56 per cent market share of the 27 Malaysian-registered chemical and petroleum tankers in Malaysia. The company also owns two liquefied petroleum gas (LPG) tankers with a combined capacity of 6,498 DWT, making it a Malaysian owner and operator of LPG vessels, a critical link in the country's energy supply chain.

Orkim's client roster includes PETRONAS, BHP, and Petron, with operations spanning every major Malaysian port – from Langkawi to Port Klang – as well as international routes across Singapore, the Philippines, Brunei, China, and South Korea.

Charting Steady Seas

Orkim's next chapter is defined by disciplined leadership, innovation, and strategic transformation under the helm of Captain Cheah. Since assuming the role in 2021, he has driven the company's evolution into a modern, technology-driven operator with a growing regional presence and a firm commitment to sustainability.

A seasoned mariner turned strategist, Captain Cheah has transformed Orkim from a modest local player into a regionally recognised maritime enterprise at the heart of Malaysia's energy logistics network.

His maritime journey began in 2000 as a cadet officer under Global Maritime Ventures Bhd's sponsorship programme. Driven by ambition and perseverance, he rose through the ranks to become one of Malaysia's youngest ship captains in the chemical tanker segment. After more than a decade at sea, he came ashore and joined Orkim in 2011, advancing through key leadership positions - from marine superintendent to CEO in 2018.

Under his stewardship, Orkim has strengthened its foothold in the CPP and LPG transport sectors, cementing its role as a critical player in Malaysia's energy logistics ecosystem.

"Maritime operations today demand precision, not just seamanship," said Captain Cheah, who holds a bachelor's degree in management technology (maritime transportation) and a Class 1 Certificate of Competency as master (unlimited voyage) issued by the Marine Department of Malaysia.

For aspiring Malaysians, he has a clear message: "The shipping industry is the backbone of Malaysia's economy. It's rewarding and far more diverse than people think - from logistics and port operations to ship management. We need more Malaysians, especially women, to steer this industry forward."

Despite global oil price volatility, Orkim has maintained a steady course, anchored by its long-term, charter-based business model that ensures stable and predictable revenue.

"Our contracts typically span between one and ten years. That gives us both stability and predictability," said Captain Cheah.

Since 2022, Orkim's annual revenue has consistently surpassed RM300 million, while net profit climbed to RM92.9 million in 2024, up from RM81 million the previous year.

As of August 2025, the company's time charter contracts carried an outstanding value of RM633.9 million - including extension periods - providing earnings visibility through 2032, according to MARC Ratings Bhd.

Reflecting its solid fundamentals, MARC recently affirmed Orkim's AA-IS rating for its RM1 billion Islamic Medium-Term Notes programme and revised its outlook to positive, signalling growing confidence in the company's long-term performance and governance.

The ratings agency expects Orkim's revenue to strengthen from 2026 onwards, supported by contributions from a newly acquired MR tanker and the commissioning of two newbuilds in 2027, both secured under long-term charters with oil majors.

The positive outlook also reflects confidence in Orkim's proposed IPO, which will see Permodalan Nasional Bhd (PNB) and Unit Trust Funds under its management (collectively, the PNB Group) emerge as majority shareholders.

Prior to the listing, Ekuinas Capital Sdn Bhd, via its subsidiary Tetap Kuasa Sdn Bhd, will divest 66.7 per cent of its stake in Orkim to PNB Group, followed by an offer for sale of the remaining 33.3 per cent stake. A new issuance of 100 million shares under the IPO will subsequently reduce PNB Group's holding to 60 per cent, assuming no over-allotment.

Following the IPO and restructuring, PNB Group's 60 per cent stake will reinforce strong institutional backing and align with the government's GEAR-uP initiative, aimed at nurturing IPO-ready Bumiputera enterprises into regional champions.

MARC noted that the positive outlook could translate into a rating upgrade within six to twelve months, driven by the expected majority ownership and support from PNB Group once the IPO is completed by end-2025.

By: Sharen Kaur