The International Maritime Organization (IMO) Net-Zero Framework (NZF) 2050 marks a major shift in global shipping policy toward environmental sustainability. Its main goal is to ensure that the global maritime sector achieves net-zero greenhouse gas emissions by the middle of this century. While this objective aligns with the Paris Agreement and global aspirations to address climate change, the approach and practical realities of its implementation raise many questions about readiness, fairness, and economic implications which particularly for developing countries such as Malaysia.

From a positive perspective, this framework provides a strong push for green technology innovation and the transformation of the shipping industry toward long-term sustainability. It stimulates the development of alternative fuels such as methanol, ammonia, and hydrogen, as well as the adoption of more advanced energy-efficiency systems. Malaysia has the potential to become a regional leader in this field through its Blue Economy strategy, Green Port initiatives, and Green Shipping Corridor projects in the Strait of Malacca. This approach can also strengthen Malaysia’s position as a maritime logistics hub and international port that complies with global environmental standards.

However, in terms of practical implementation and economic equity, the IMO NZF presents significant challenges for developing countries. Malaysia’s shipping industry, which consists largely of small and medium-sized fleets, faces financial, technological, and human resource constraints in meeting these new standards. The cost of vessel transformation, engine system conversions, and green fuel adoption remains very high. Supporting infrastructure such as green fuel stations, storage facilities, and logistics networks is also not yet fully developed in the region.

Furthermore, the IMO policy appears to maintain a gap between developed and developing nations. Developed countries possess advantages in technology, access to carbon financing, and market power to implement energy transitions aggressively. In contrast, countries like Malaysia must bear the economic impacts of rising operating costs, which could ultimately pressure freight rates, port competitiveness, and the welfare of seafarers and small operators.

It is also noted that IMO is currently evaluating proposals to establish a Global Maritime Emissions Pricing Mechanism which essentially a carbon levy system on emissions from ships—aimed at encouraging green fuel use and funding the maritime energy transition. The proposal includes levy payments based on the amount of carbon emitted per tonne. However, differences in opinion remain between developed and developing countries regarding levy rates, implementation, and the distribution of levy revenues, which many view as still unfair to developing nations such as Malaysia.

In the context of regional law and policy, Malaysia must address this issue through a pragmatic approach based on the principle of Common But Differentiated Responsibilities (CBDR) as outlined in the United Nations Framework Convention on Climate Change (UNFCCC). Carbon transition planning should be gradual and supported by regional ASEAN cooperation, green financing mechanisms, and equitable technology transfer. However, it must also be acknowledged that a significant economic gap in the shipping sector exists even within the ASEAN context. The most recent emergency meeting of the Marine Environment Protection Committee (MEPC) at IMO, with a very tight vote among Member States, ultimately resulted in an unprogressive and non-conducive outcome: the discussion on the ratification and enforcement of the IMO NZF has been postponed for another one (1) year.

In conclusion, the IMO NZF is an important initiative toward sustainable shipping, but its implementation must balance global responsibilities with regional economic realities. Malaysia must not merely be a follower of international policies but should play an active role in formulating an inclusive, progressive, and sustainable national strategy so that this green maritime transformation truly becomes an opportunity, not a burden, for the future of the national shipping industry.

Zulin Farur
19 October 2025

As someone with two decades of experience in Malaysia’s maritime industry, I see the launch of the Malaysia Maritime Single Window (MMSW) by the Minister of Transport this year as a pivotal moment in the evolution of the nation’s logistics sector. This system, which promises “one-click” maritime trade facilitation, carries with it great hope, opportunity, and also challenges that must be addressed realistically.

MMSW is an integrated digital platform that connects maritime stakeholder which including government agencies, port operators, shipping companies, forwarding agents, customs authorities, and logistics providers. The concept is simple: all documentation processes, approvals, and data exchanges are carried out through a single electronic gateway.

From an industry practitioner’s perspective, the expected benefits include a reduction in document processing time from days to just hours. It can also eliminate data duplication, meaning information does not need to be repeatedly entered. The transparency built into the MMSW process minimizes opportunities for unethical practices, while its standardized framework complies with the International Maritime Organization (IMO) and the FAL Convention.

For years, maritime industry players have complained about data and process fragmentation. Shipping agents have had to deal with multiple separate portals—one for customs, another for the Marine Department, and different systems at each port. MMSW aims to finally break down these silos. One of the commendable aspects is the scope of digitization, which reduces reliance on physical forms and minimizes the risk of loss or errors. Its interoperability also allows potential integration with smart port systems and cargo tracking platforms. This is expected to boost operational efficiency by shortening vessel clearance and cargo handling times. MMSW could also enhance Malaysia’s port attractiveness and improve its standing as a regional trading hub.

But praise alone is not enough. With years of experience in the industry, I know that no matter how advanced the technology is, success depends on careful implementation. Several issues are concerning. First is infrastructure readiness which not all ports and terminals in Malaysia have the same level of automation or network capacity. Another critical aspect is user capacity. Many small and medium-sized enterprises (SMEs) may lack the resources or IT expertise to optimize the new system.

MMSW’s inter-agency integration will only work if all agencies fully adopt it and abandon outdated manual channels. What most users do not realize is that almost all the back-end systems behind MMSW still operate separately within their respective enforcement agencies. And then there is the issue of cybersecurity. Concentrating all trade data in a single platform makes MMSW an attractive target for cyberattacks. The fact that each back-end system uses different levels of security resilience only heightens this risk.

In my view, the success of MMSW will hinge on three main factors. First, industry training and awareness. Practical training programs should be provided for all industry players, especially SMEs, supported by multilingual user manuals and 24/7 help centers. Second, a phased integration approach, starting with major ports before expanding to smaller ones. Pilot testing can help identify weaknesses. But there remains a critical question: what guarantees are there for other important ports not administered by the federal government, including private jetties in East Malaysia? Third, strategic partnerships and continuous learning from countries that have successfully implemented similar systems. Collaboration with the private sector in developing new features must continue, even if it involves significant costs for the government.

MMSW is a bold step toward full digitalization of Malaysia’s maritime ecosystem. It has the potential to reduce costs, speed up trade processes, and enhance the nation’s competitiveness. But true success will not be measured on launch day but it will be measured by how seamlessly industry players can use the system without obstacles.

In the maritime world, we know a good voyage begins with the right heading. MMSW has set that heading. Now, we must ensure the ship is well-equipped, well-steered, and capable of navigating the waves of challenges ahead.

Zulin Farur
1 June 2025

The launch of the Malaysia Law Revision & Reform Committee (MLRRC) by the Minister of Transport in June 2025 is a historic opportunity to undertake comprehensive reform, including the establishment of a modern, comprehensive, and harmonized National Shipping Act.

Why a National Shipping Act Is Needed

Today, Malaysia’s maritime legal framework is based on several primary legal instruments:
- The Federal Constitution of Malaysia, which grants the Federation legislative power over shipping and navigation matters.
- The Merchant Shipping Ordinance 1952 (MSO 1952), applied in Peninsular Malaysia.
- The Merchant Shipping Ordinance 1960 (Sarawak) (MSO 60 Sarawak), specific to Sarawak.
- The Merchant Shipping Ordinance 1960 (Sabah) (MSO 60 Sabah), specific to Sabah.

Although these three shipping ordinances are based on the same legal framework, there are significant differences in terms of amendments, implementation, and scope of power. This has resulted in inconsistent enforcement across regions, creating confusion among industry players.

A Brief Comparative Analysis

The Ninth Schedule, Federal List of the Federal Constitution grants full jurisdiction to the federal government over shipping and navigation, including ports and maritime safety. However, it does not elaborate on technical details—these are delegated to specific Acts or ordinances.

The MSO 1952 covers vessel registration, navigation safety, qualifications and certification of masters and crew, navigation control, and enforcement of international maritime law such as IMO conventions, including SOLAS and MARPOL. Although it has undergone several amendments, many provisions still use outdated terms and procedures that no longer reflect current technological developments.

MSO 60 Sarawak is similar to the 1952 version but includes special provisions relating to local port administration and traditional water rights, with local amendments differing from those in Peninsular Malaysia. Meanwhile, MSO 60 Sabah shares the same foundation but contains specific provisions related to border water control, traditional fishing, and offshore vessels.

In summary, these three separate legal frameworks have created overlapping powers, legal confusion, and gaps in international compliance that can no longer be ignored.

The Role and Critique of MLRRC

The Ministry of Transport deserves credit for launching the MLRRC—showing the courage to begin a reform process that challenges over 60 years of legal status quo. The inclusive approach, which involves industry stakeholders, academia, and enforcement agencies, is a proven method for implementing systemic change. Awareness of global standards is also crucial to ensure Malaysia’s laws align with IMO, UNCLOS, and other international conventions.

However, some initial weaknesses are already evident. First, the scope of reform is too broad, risking diluted focus. Without a clear timeline and optimal compliance with implementation periods, legal reform could drag on for too long. Conversely, setting an overly short timeline could result in a rushed draft that lacks comprehensiveness and enforceability.

The challenge of coordinating Malaysia’s regions—especially Sabah and Sarawak—requires careful negotiation for legal harmonization, as this involves their constitutionally recognized autonomous powers.

The Direction of the New Act

Unifying the various shipping ordinances into a single consolidated law is a much-needed modern step. However, this initiative is not entirely new. The roots of MSO 60 in Sabah and Sarawak date back to colonial times. These ordinances have structured local port and domestic shipping activities in these states for decades, allowing them to operate their intra-state trade without fully relying on MSO 1952 or federal powers.

A practical starting point would be modernizing the legal language and processes to align with today’s maritime technology. IMO standards should be mandated and harmonized across all regions, even if a single unified law cannot be immediately achieved. Malaysia needs one clear, consistent, and authoritative national shipping law. The current fragmented framework hampers national maritime integration and inconsistent adaptation of international shipping conventions and instruments. Strengthening enforcement and audit mechanisms is a short-term step that can be implemented more easily.

The MLRRC has revived this long-awaited conversation. The next step is to ensure the creation of a National Shipping Act that unifies Malaysia’s maritime legal framework, modernizes outdated regulations, and propels the nation toward global maritime hub status—while respecting the existing powers of Sabah and Sarawak.

Zulin Farur
13 April 2025