New approval system for ship bunkering aims to cut down processing period, says Transport Minister


KUALA LUMPUR: Ship bunkering approval processing periods are expected to drop from six months to just several weeks by February next year through a new approval system, says Anthony Loke.

The Transport Minister said the new single-window system would consolidate the many applications currently handled by various agencies into a single application process.

However, he stressed that the new system would not remove other agencies’ jurisdiction, but instead make the application process easier for companies.

“We are not taking over their jurisdiction but just trying to consolidate the process.

“Previously, a bunkering application would take months, at least six to seven months, to obtain approval but with this new system we hope it will be reduced to weeks,” he said in a press conference after launching Malaysia Maritime Week 2026 here on Tuesday (Sept 29).

He said the initiative would be implemented under the Transport Ministry following a Cabinet mandate, with other departments and agencies having provided cooperation.

Loke said the government was also looking to make Malaysia’s bunkering sector more competitive amid significant shipping activity through the Straits of Malacca.

“Thousands of ships pass through every year. So, this is a real opportunity, a real economic opportunity,” he said.

To this, he said Malaysian companies needed to improve their competitiveness in terms of quality, service delivery and reliability to attract more bunkering business.

Loke also highlighted the development of green bunkering as ships worldwide increasingly look towards alternative fuels.

He noted that the government was examining fuels such as methanol, liquefied natural gas and ammonia as part of its preparations for the sector.

“This is why we are working with Australia on a green bunkering roadmap covering the processes and procedures needed to develop the sector domestically.

“Our ports must be ready, our regulations must be ready and we also need to have the necessary SOPs,” he said.

Meanwhile, Loke also said Malaysia was pursuing major port expansion projects to strengthen its position as a maritime hub.

These included the Westports 2 expansion, a proposed third port at Carey Island, as well as expansion plans involving Port of Tanjung Pelepas and Penang.

Loke said the first phase of the Westports expansion was almost complete, with construction expected to begin next year.

“The first berth will be operational within two years,” he said.

He said stronger port capacity would support greater shipping activity, business opportunities and job creation across the maritime value chain.

Loke also called for greater development of Malaysian-owned vessels and the domestic shipbuilding and ship repair industries.

On this, he said his Ministry had submitted proposals to the Finance Ministry for incentives encouraging more ships to be built and repaired locally to be included in the upcoming Budget 2027.

“We are examining ways to address financing difficulties faced by shipowners, as banks often regarded shipping as a high-risk sector,” he added.

 

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