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 Although it has undergone several amendments, many provisions still use outdated terms and procedures that no longer reflect current technological developments.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