Malaysian banks must back bunkering players or lose business to Singapore, says industry leader

Malaysia's maritime industry is urging local banks to provide greater financial backing to boost investment and enable domestic players, particularly in the crucial bunkering sector, according to industry leader Datuk Seri Jeyenderan R. Bunkering services involve supplying and managing marine fuels, lubricants, and provisions for ships.

Many industry participants are keen to enter the bunkering market but struggle to obtain bank financing due to perceived high-risk associated with vessel and bunkering asset purchases. Local banks are reluctant to finance these ventures, causing investors to prefer Singaporean banks instead, leading to potential economic losses for Malaysia.

Jeyenderan highlighted that Malaysia's bunkering capacity has decreased from 600,000 tonnes in 2013 to 200,000 tonnes currently. To improve the industry, clearer guidelines for customs documentation are needed, as navigating various procedures from different agencies can be challenging. The 13th Malaysia Plan (13MP) targets are generally on track, but waste management must be better managed to support sustainable aviation fuel production.