A BILL

Intituled

An Act to amend the Merchant Shipping Ordinance 1952 and to

extend specified provisions to the Federal Territory of Labuan and
the States of Sabah and Sarawak, and to provide for matters
connected therewith.

[ ]

ENACTED by the Parliament of Malaysia as follows:

Short title and commencement

1. (1) This Act may be cited as the Merchant Shipping

(Amendment and
Extension) Act 2007.
(2) Subject to subsection (3), this Act comes into operation
on a date to be appointed by the Minister by
notification in the Gazette, and the Minister may
appoint different dates for the coming into operation of
different provisions of this Act.
(3) This Act comes into operation in the States of Sabah
and Sarawak on such date as the Minister may, after
consultation with the State Authorities, appoint by
notification in the Gazette.

Bill
Amendment of section 2

2. The Merchant Shipping Ordinance 1952 [Ord. 70/1952], which

in this referred to as the “Ordinance”, is amended in section 2
by inserting after definition “load line rules” the following
definition:

‘ “ Malaysia Shipping Notice” means a notice described

as such and issued by the Director of Marine in
pursuance of section 519A in such manner as
determined by him;’

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Amendment of heading of Part V

3. The Ordinance is amended in the heading of Part V by

substituting for the word “SAFETY” the words “MARITIME
TRANSPORT SAFETY AND SECURITY”.

New sections 249A, 249B, 249C, 249D, 249E, 249F, 249G,

249H, 249I, 249J,249K, 249L, 249M, 249N, 249O, 249P,
249Q, 249R, 249S, 249T, 249U, 249V, 249W, 249X, 249Y,
249Z, 249AA and 249BB

4. The Ordinance is amended in Part V by inserting under the

heading of that Part but before the subheading “Prevention of
Collusions.” The following subheading and sections:

“Maritime Transport Security.

Interpretation.

249A. In this subheading, unless the context otherwise requires-

“certificate” means the International Ship Security Certificate,

Statement of Compliance of a maritime transport security
area or statement of Compliance of a designated marine
facility issued in accordance with section 249K;

“company” means the owner of a ship or, any other

organization or person such as the ashore manager or
bareboat chartered who has assumed responsibility for the
operation of the ship from the owner of the ship.

Merchant Shipping (Amendment and Extension) 3

And who on assuming such responsibility has agreed to take

over all duties and responsibilities relating to the safe
operation of the ship;

“declaration of security” means an agreement between a ship

and either a marine facility or another ship whit which it
interfaces, that specifies the security measures each must
implement;

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 “interim certificate” means the Interim International Ship
Security Certificate issued in accordance with subsection
249K(4);

“marine facility” includes-

a) An area of land, water or other supporting surface used,
designed, prepared, equipped or set apart for use, either
in whole or in part, for the arrival, departure, movement
or servicing of vessels;
b) A building or installation and equipment in the area
associated with it or used or set apart for handling or
storing goods that have been or are destined to be
transported on a vessel:
c) Equipment and facilities issued it provide services
relating to marine transportation;
d) A fixed and floating structure, including an off-shore
industry structure;
e) An off-shore industry mobile unit;

“marine facility security assessment” means a process of

identification in
respect of designated marine facility which contains the
following
elements:

(a) Identification and evaluation of assets and

infrastructure that is important to project;
(b)Identification of possible threats to the assets and
infrastructure and the likelihood of their occurrence
in order to establish and priorities security measures;
(c) Identification, selection and prioritization of
countermeasures and procedural changes and their
level of effectiveness in reducing vulnerability; and
(d)Identification of weaknesses, including human
factors, in the infrastructure, policies and procedures;

“marine facility security plan” means a plan developed to

ensure the application of measures designed to protect a
designated marine facility and ships, persons, cargo, cargo
transport units and ship’s stores within the designated marine
facility from the risks of a security incident;

“marine transport security area security assessment” means a

process of risks identification in respect of a marine transport
security area which contains the following element;

(a) Identification and evaluation of assets and

infrastructure that is important to protect;

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 (b)Identification of possible threats to the assets and
infrastructure and the likelihood of their occurrence
in order it establish and priorities security
measures;
(c) Identification, selection and prioritization of
countermeasures and procedural changes and their
level of effectiveness in reducing vulnerability; and
(d)Identification of weaknesses, including human
factors, in the infrastructure, policies and
procedures,

And does not include matters as contained in the ship security

assessment and marine facility security assessment in respect
of a ship and marine facility within that maritime transport
security area;

“maritime transport security area security plan” means a plan

developed to ensure the application of measures designed to
protect a maritime transport security area.

Merchant Shipping (Amendment and extension)

From the risks of a security incident, and does not include

matters as contained in the ship security plan and marine
facility security plan in respect of a ship and marine facility
within that maritime transport security area;

“security incident” means any suspicious act or

circumstance treating the security of a ship, including a high-
speed craft, or a marine facility, or any ship-marine facility
interface or ship-to-ship activity;

“security level” means the quantification of the degree of

risk that a security incident will be attempted or will occur;

“security level 1” means the level for which minimum

appropriate protective security measures shall be maintained
at all times;

“security level 2” means the level for which appropriate

additional protective security measures shall be maintained

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 for a period of time as a result of heightened risk of a security
incident;

“security level 3” means the level for which further specific

protective security measures shall be maintained for a limited
period of time when a security incident is probable or
imminent, although it may not be possible to identify the
specific target;

“ship security assessment” means a process of risks

identification in respect of a ship which contains the following
element:

(a) Identification of existing security measures,

procedures and operations:
(b)Identification and evaluation of key shipboard
operation that is important to protect:
(c) Identification of possible threats to key shipboard
operation and the likelihood of their occurrence in
order to establish and priorities security measures:
and
(d)Identification of weaknesses, including human
factors, in the infrastructure, policies and
procedures:

“ship security plan” means a plan developed to ensure

the application of
measures on board a ship designed to protect persons on
board , cargo,
cargo transport units, ship’s stores or the ship from the
risks of a security
incident

“ship-to-ship activity” means any activity not related to a

marine facility
that involves the transfer of goods or persons from one
ship to another
ship.

Application

249B. This subheading applies to-

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 (a) Maritime transport security areas and ships in
Malaysia and Malaysian waters;
(b)Marine facilities in Malaysia, Malaysian waters, the
exclusive economic zone and continental shelf, and
ships entering such marine facilities; and
(c) Malaysian ships and off-shore industry mobile units
registered under the Ordinance, wherever they are.

Exemption

249C. The Minister may exempt any ship or class of ships or

designated
marine facilities from any o the provisions of this
subheading or any
rules made hereunder , upon such terms and
conditions as he deems fit,

Designated Authority

249D. (1) The Director of Marine shall be the Designated

Authority for the
purposes of implementing the provisions of this
subheading.

(2) the Designated Authority shall be responsible for-

(a) Approving the ship security assessment and ship

security plan and subsequent amendment to a
previously approved assessment and plan;
(b)Approving the maritime transport security area
security assessment and marine facility security

Merchant Shipping (Amendment and Extension)

Assessment, and the maritime transport security area

security plan and
marine facility security plan and any subsequent
amendment to any
previously approved assessment and plans;

(c) Verifying the compliance of maritime transport

security areas, ships and designated marine
facilities with the approved security assessment
and security plans;
(d)Exercising control and compliance with security
measures to be adopted at the different security
levels declared; and
(e) Testing approved security plans.

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 (3) The Designated Authority shall notify the company or
master of the ship, or operator of a designated marine
facility the security level declared for the ship or
designated marine facility , respectively.

Maritime Transport Security Area

249E. The Designated Authority may by notification published

in the Gazette-

(a) Declared any area or part of an area in Malaysian

waters as a maritime transport security area: or
(b)Declared that a maritime transport security area
ceases to be a maritime transport security area.

Designated marine facility

249F. The Designated Authority may by notification published

in the Gazette-

(a) Designated any marine facility as a designated

marine facility, including the delineation of its
boundary, its hours of operation and its name;
(b)Vary any particulars of a designated marine facility;
or
(c) Declared that a designated marine facility ceases
to be a designated marine facility.

Merchant Shipping (amendment and Extension)

Assessment, and the maritime transport security area

security plan and
marine facility security plan and any subsequent
amendment to any
previously approved assessments and plans;

(a) Verifying the compliance of maritime transport

security areas, ships and designated marine
facilities with the approved security assessment s
and security plans;
(b)Exercising control and compliance security
measures to be adopted at the different security
levels declared; and
(c) Testing approved security plans.

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 The Designated Authority shall notify the company or
master of the ship, or operator of a designated marine
facility the security level declared for the ship or
designated marine facility, respective.

249F. The Designated Authority may by notification published

in the Gazette-

(a) designate any marine facility as a designated marine

facility, including the delineation of its boundary, its
hours of operation and its name;
(b)vary any particulars of a designated marine facility;
or
(c) declare that a designated marine facility ceases to be
a designated marine facility.

Appointment of Maritime Transport Security Officer

249G. The Designated Authority may appoint a

Maritime Transport Security Officer
in respect of a maritime transport security area.
The Maritime Transport Security Officer shall be
responsible for the
development, implementation, revision and
maintenance of the maritime transport security area
security assessment and maritime transport security
area security plan.

The Maritime Transport Security Officer may establish

a committee to
monitor and coordinate security matters within the
maritime transport
security area.

Appointment of Maritime Facility Security Officer

249H.Every designated marine facility shall have a Marine

Facility Security Officer who shall be accountable to –

(a) The Designated Authority in respect of a designated

marine facility situated outside the maritime
transport security area :
(b)The Maritime Transport Security Officer in respect of
a designated marine facility situated within the
maritime transport security area.

The operator of a designated marine facility shall

appoint a Marine Facility Security Officer.

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 The Marine Facility Security Officer shall be responsible
for the development, implementation, revision and
maintenance of the marine facility security assessment
and marine facility security plan, and for liaison with the
Ship Security Officers and Company Security Officers

Appointment of Company Security Officer

249I. Every company shall appoint one or more Company

Security Officers to be responsible for the development
and supervision of the implementation of the ship
security assessment and ship security plan in respect of
its ships.

Appointment of Ship Security Officer

249J. Every ship shall have a Ship Security Officer who shall
be responsible for the security of the ship, including the
implementation and maintenance of the ship Merchant
Shipping (Amendment and Extension) security plan, and
for liaison with the Company Security Officers and
Marine Facility Officers.

Subject to subsection (3), the Ship Security Officer shall

be accountable to the master of the ship.

Where the Ship Security Officer is also the master of

the, he shall be accountable to the Company Security
Officer.

Issuance of Certificate or interim certification

249K. The Designated Authority may, upon receipt of a written

application from a company and upon being satisfied
that a ship of the company has complied with all the
requirements of this subheading and the rules made
hereunder, issue an International Ship Security
Certificate in the prescribed form in respect of such ship
upon of the prescribed fee.

The Designated Authority may, upon receipt of a written

application from a Maritime Transport Security Officer or
operator of a designated marine facility and upon being
satisfied that the maritime transport security area or

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 designated marine facility has complied with all the
requirements of this subheading and the rules made
hereunder, issue-

(a) A Statement of Compliance of a maritime transport

security area; or
(b)A Statement of Compliance of a designated marine
facility,

In the prescribed form in respect of such maritime

transport security area or designated marine facility,
upon payment of the prescribed fee.

The Designated Authority may issue the certificate in

pursuance of subsection (1) or (2) subject to any
conditions or restrictions that he may deem fit to
impose.

The Designated Authority may, pending the issuance of

the International Ship Security Certificate, issued an
Interim International Ship Security Certificate subject to
such conditions or restrictions that he may deem fit to
impose.

Requirement for declaration of security

249P. The Designated Authority may require a declaration of

security to be completed if he satisfied that a ship-
marine facility interface or ship-to-ship activity poses a
risk to persons, property or the environment.

Request for declaration of security

249Q.The master of a ship or the Ship Security Officer may

lodge a request with the master or the Ship Security
Officer of another ship for a declaration of security or
modification of such declaration of security if –

(a) The ship is operating at a higher security level than

the designated marine facility or the other ship with
which it is interfacing or intends to interface;
(b)The ship is registered in a State that is a party to the
Safety Convention, and is an agreement on a
declaration of security between that State and
Malaysia covering certain international voyages or
specific ships on those voyages;
(c) A security incident involving the ship or the marine
facility it is using or intends to use, has occurred; or

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 (d)The ship is at marine facility that is not required to
have and implement an approval marine facility
security plan.

The master of a ship or the Ship Security Officer may

lodge a request with the master of another ship for a
declaration of security or modification of such
declaration of security if the ship is conducting ship-to-
ship activities with that other ship which is not required
to have and implement an approved ship security plan.

A Marine Facility Security Officer may, before or during

ship-marine facility interface, lodge a request with the
master of the ship or Ship Security Officer for a
declaration of security or modification of such
declaration of security, if –

(a) The marine facility security plan identifies the ship-

marine facility interface as being susceptible to a
security; or

Merchant Shipping (Amendment and Extension)

(b)The designated marine facility is operating at a

higher security level than the ship with which it is
interfacing or intends to interface with

Reporting of security incident

249R. The company, master of a ship, Maritime Transport

Security Officer or operator of designated marine facility
shall report immediately to the Designated Authority
upon the occurrence of the following security incidents :

(a) An explosion that is not be result of an accident;

(b)A bomb threat, armed attack, hostage taking,
stowaway or hijacking; or
(c) Any breach of security

Any company, master of a ship, Maritime Transport

Security Officer or operator of a designated marine
facility who fails to report the security incident shall be
liable for each offence to a fine not exceeding fifty
thousand ringgit or to imprisonment for a term not
exceeding five years or to both.

Direction to Ships

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249S. Where the Designated Authority has reasonable grounds
to suspects that a ship is a threat to the security of any
person or thing, including any goods, maritime transport
security area, ship or marine facility, the Designated
Authority may direct the ship to –

(a) Proceed to a place specified by the Designated

Authority in accordance with any instructions given
by him and to remain at the place until he is satisfied
that the security threat no longer exists;
(b)Proceed out of Malaysian waters in accordance with
any instructions the Designated Authority may give
regarding the route and manner of proceeding; or
(c) Remain outside Malaysian waters.

The Designated Authority may in writing authorize any

Maritime Transport Security Officer or port officer to
exercise the power to issue directions to any ship in
pursuance of subsections

The direction given to the company or master of a ship

is evidence that reasonable steps were taken to notify
the ship that it is a threat to the security of any person
or thing, including any goods, maritime transport
security area, ship or marine facility.

The company or master of a ship who fails to comply

with the direction shall be liable to a fine not exceeding
fifty thousand ringgit or to imprisonment for a term not
exceeding five years or to both.

Prohibition of ship entering Malaysian waters when there is a

security incident

249T. Where there is a security incident, the Designated

Authority may prohibit any ship or class of ships from
eating entering any area of Malaysian waters, or any
marine facilities in the exclusive economic zone or
continental shelf.

Any company or master of a ship who contravenes this

section shall be liable to a fine not exceeding fifty
thousand ringgit or to imprisonment for a term not
exceeding five years or to both.

Master’s discretion for ship security

249U. If the master during the operation of the ship, in his

professional judgment takes or executes any decision

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 which is in conflict with the safety and security
requirements applicable to the ship that is necessary to
maintain the safety of the ship, the taking or execution
of that decision shall not by itself constitute a breach of
any duty owed to any person by him under any contract,
including a contract of employment.

Detention of ship

249V. Where the Designated Authority has reasonable cause

to suspect that a ship fails to comply with any provision
of this subheading or any rules mad hereunder, the
Designated Authority may direct that the ship be
detained for the purposes of conducting an investigation
and examination of the ship, including that in respect of
all persons on board the ship.

Equivalent security arrangements

249W. The Designated Authority may allow any

Malaysians ship, maritime transport security area or
designated marine facility to implement other security
measures that are equivalent to and at least as effective
as the security measures prescribed under this
subheading.

Merchant Shipping (Amendment and Extension)

Security organisation

249X. The Designated Authority may in writing, subject to any

conditions as he deems fit, appoint any organizations
which has appropriate expertise in security matters and
appropriate knowledge of ships and marine facility
operations as a security organization.

Notwithstanding subsections 249D(2), 249K(1) and

249L(1), the Designated Authority may authorize in
writing the security organization to undertake certain
security-related activities in respect of a ship only,
including –

(a) The approval of the ship security asessment and ship

security plan and subsequent amendments to a
previously approved asessment and plan;

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 (b)The verification of compliance of ship with the
approved ship security asessment and ship security
plans; and
(c) The issuance, replacement and revocation of the
International Ship Security Certificate in accordance
with this subheading.

(3) The Designated Authority may revoke the appointment

of a security organisation under subsection (1) if the is
satisfied that the security organisation fails to meet the
conditions as imposed by him.

Alternative security arrangements

249y. (1) This subheading shall not apply to-

a) Any ship engaged on short international voyages on

fixed routes between designated marine facilities
and marine facilities outside Malaysia; and
b) The designated marine facilities as mentioned in
paragraph (a),

If it is covered by an agreement between the Government of

Malaysia and another government on alternative security
arrangements.

(2) No ship covered by the agreement referred to in sibsection

(1) shall conduct any ship-to ship activity with any ship not
covered by such agreement.

Power to inspect

249z. The Designated Authority, port officer or any person

authorised in writing by the Designated Authority, may inspect
any ship, maritime transport security area and designated
marine facility to which this subheading applies for the
purpose of ensuring that yhe provisions of this subheading
and the rules made hereunder have been complied with.

Power investigate

249AA. (1) Investigations in respect of offences under this

subheading may, without prejudice to the provisions of any
other written law relating to investigations, be conducted by

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the Designated Authority or any person authorised In writing
bt him.

(2) The Designated Authority or any person authorised in

writing by him making investigations under this
subheading shall have the power to-

a) Go on board any ship or enter into any maritime

transport security area or marine facility as the
considers necessary;
b) Require the company, master of any ship, Maritime
Transport Security Officers or operator of a
designated marine facility to faclilies yhe boarding of
the ship or entry into maritime transport security
area or marine faclility, as the case may be;
c) Require information, whether orally or in writing, from
any person supposed to be acquainted with the facts
and circumstances of the case under investigation; or
d) Require the production of any certificate, interim
certification, official log-book or other documents
relating to the operation of thr ship, maritime
transport security area or designated marine facility
from the company, master of the ship, Maritime
Transport security officer or operator of the
designated marine facility, as the case may be.

Merchant Shipping (Amendment and Extension)

(3) Any person who-

a) Without reasonable excuse refuses or fails to comply

with a requirement made of him by the Designated
Authority or any person authorised in writing by the
Designated Authority in the exercise of his powers
under subsection (2); or
b) In respect of a matter that is to respond to under
subsection (2), make a statement that is false or
misleading in a material particular,

Shall be liable for each offence to a fine not exceeding fifty

thousand ringgit or to imprisonment for a term not exceeding
five years or to both.

Maritime transport security rules

249AB. The Minister may make such rules as may be

necessary or expedient with respect to any matters relating to
maritime transport security, and such rules may-

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 a) Regulate the issuance and revocation of certificates
and interim
certificates, including procedures for the application
of certificates and interim certificates, and the
duration and replacement of such certificates;
b) Provide for security maesures in respect of access
control, security
monitoring, passengers, personnel, baggage, delivery
of ship;s stores and cargo security, including the
development, implementation and review of security
assessments and security plans for maritime
transport security areas, ships and designated
marine facilities and the producedure to be adopted
and complied with when the security lavel has been
declared;
c) Prescribe the fees payable in connection with the
provision of any service
or any other matter under this subheading, including
the manner of
collecting and disbursing such fees and for
matters relating to the failure to
pay such fees;
d) Prescribe the forms that are erquired for the purposes
of this subheading;
e) Prescribe the standards of security to be maintaind
on board ships and in the maritime transport security
areas and designated marine faclities;
f) Provide for the procedure in respect of pre-arrival
notification of any ship;
g) Regulate matters concerning the declaration of
security, including the form of request for a
declaration of security;
h) Provide for the duties, resonsibilities and training
requirements of a Maritime transport Security Officer,
Marine Facility Security Officer, Company Security
Officer and ship Security Officer;
i) Provide for penalties for the contravention of the
provisions of the rules made hereunder of a fine not
exceeding twenty-five thousand ringgit or
imprisonment for a term not exceeding two years or
to both”.

New sections 249AC, 249AD, 249AE, 249AF, 249AG, 249AF,

249AI, 249AJ, 249AK, 249AL, 249AM, 249AN, and 249AO

5. The Ordinance is amended in Part by inserting after the new

section 249AB but before the subheading “ Prevention of
collisions.” The following subheading and sections:

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 “Safe Operation of ships.

Interpretation

249AC. In this subheading, unless the context otherwise

requireas-

“Certificated” means the Document of Compliance or

the Safety Management Certificate issued in accordance with
section 249AJ;

“Company” has the same meaning as assigned ti it in

section 249A;

Merchant Shipping (Amendment and Extension)

“Interim certificate” means the Interm Document of

Compliance or the Interim Safety Management Certificate
issued in accordance with subsection 249AJ(4);

“Safety Management System” means a structured and

documented system enabling the company to implement
effectively the company’s safety and environmental-
protection policy within the company and on its ships.

Application

249AD. This subheading shall apply to-

a) passenger ships;
b) cargo ships of 500 gross tonage and more; and
c) of-store industry mobile units of 500 gross tonage and
more,

Registered under the Ordinance

Exemption

249AE. (1) The Minister may, by notification published in

the Gazette exempt any ship or class of ships from any of the
provisions of this subheading or any rules made hereunder,
upon such and conditions as he may deem fit.

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 (2) Subject to subsections (1), the Surveyor-General of
Ships may exempt any ship from any of the provosions of this
subheading for a particular voyage, upon such terms and
conditions as he may deem fit.

General supervision but the surveyor-general of ships on

matters relating to safe operation of ships, etc

249AF. For the purpose of this subheading, the Surveyor-

General of Ships shall exercise general direction and
supervision over all matters relating to the safe operation of
ships and protection of the environment, and shall ensure
compliance with the provisions of this subheading and the
rules made hereunder.

Apoointment of designated person

249AG. (1) Every company shall appoint one or more

designated persons ashore who shall provide a link between
the company and those persons on board the ship, and shall
have direct access to the highest level of management of the
company.

(2) The designated person shall monitor the safety and

pollution prevention aspects of the operation of each ship and
shall ensure that adequate resources and sjorebased support
are applied.

Safety Management System.

249AH. (1) Every company shall develop, implement and

maintain a Safety Management System that shall include the
following functional requirement;

a) a safety and environmental-protection poliy;

b) Instructions and procedures to ensure the safe
operation of ships and protection of the environment
in compliance with relevant laws and international
conventions;
c) Defined levels of authority and lines of
communication between and amongst shore and
shipboard personnel;
d) Procedures for reporting accidents and non-
conformities with the provision of this subheading;
e) Procedures to prepare for and respond to emergency
situations; and
f) Procedures for internal audits and management
reviews.

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(2) The Surveyor-General of Ships shall carry out audits of
the Safety Management System of every company and its
ships to verity compliance with the provisions opf this
subheading and the rules made hereunder.

(3) The company shall notify the Surveyor-General of Ships

of any amendments made of the safety Management System
within thirty day after amendments have been made.

(4) Any company who fails to comply with subsection (1) or

(3) shall be liable for each offence to a fine not exceeding fifty
thousand ringgit or to imprisonment for a term not exceeding
five years or to both.

Merchant Shipping (Amendment nad Extension)

Master’s responsibilities.

249AI. (1) The company shall ensure that the sfety

Management System on board the ship contains a clear
statement emphasizing the master’s authority.

(2) The company shall establish in the safety management

System that the master has the overriding authority and
resposibility to make decisions with respect to safety and
poluution prevention and to request the company’s assistance
as when necessary.

Issuance of certificate or interim certificate

249AJ. (1) The Surveyor-general of ships may, upon

receipt of an application from the company and upon
verfication that he is satisfoied that the company has
complied with all the requirements of this subheading and the
rules made hereunder, issue a Docment of Compliance in the
prescribed form in respect of the type to ships indicated in
that documents upon payment of the prescribed fees.

(2) Upon obtaining the Document of Compliance, the

company shall apply for a shall apply for a safety
Management Certificate in respect of each of its ships
within the types of ships as indecated in the Document
of Compliance, and the Surveyor-General of ships may
upon being satisfied that the compny and its shipboard
management operate in accordance with the Safety
Management System, issue the Safety Management
Certificate upon payment of the prescribed fees.

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(3) The Surveyor-General of ships may issue the certificate
in pursuance subsection (1) or (2) subject to any
conditions that he may deem fit to impose.

(4) The Surveyor-General of ships may, pending the

issuance of the certificate, issue an interim certificate
subject to such conditions as he may deem fit to
impose.

(5) Where a company to whom a Document of Compliance

has been issued, aplplies for the additon of new typers
of ships to the exesting types of ships as indicated in the
Document of Compliance, the Surveyor-General of ships
nay issue to that company an Interim Document of
Compliance in respect of the new types of ships.

Bill

The Surveyor-General of ships may direct any ship to be

detained solely for the purpose of conducting an investigation.

Any person who-

a) Without reasonable excuse refuses or fails to

comply with a requirement made af him by the
Surveyor-General of ships in the exercise of his
powers under subsection (2); or
b) In respect of a matter that he is required to
respond to under subsection (2), makes a
statement that is false or misleading in a material
particular,

Shall be liable for each offfence to a fine not exceeding fifty

thousand ringgit or to imprisonment for a term not exceeding
five years or to both.

Safety rules

249AO. (1) \The minister may make rules providing for

the safe management and operation of ships including the
safe pratices in ship operation, safe working environment on
board ships, the management of persons ashore and
avoidance of damage to the environment, in particular the
marine environment and to property.

(2) Without prejudice to the generality of subsection (1), the

rules may-

a) Regulate the issuance and revocation of certificates

and interim certificates, including procedures for the

20
 application of certificates and interim certificates, the
duration and replacement to such certificates, and
the annual verification of the Document of
Compliance and intermediate verification of the
Safety Management Certificate;
b) Provide for standards for the safe management and
operation of ships including the preparation of
operational plans on board ships, emergency
response, manning, documentation of the Safety
Management System, master’s responsibilities and
any matters connected therewith;
c) Provide for the establishment and maintenance of
procedures to control all documents and data
relevant to the Safety Management System;
d) Provide for the verification of compliance of the
Safety Management System through auduting
procedures;
e) Prescribe the fees payable in connection with the
provision of any service or any other matter under
this subheading, including the manner of collecting
and disbursing such asfees and for matters relating
to the failure to pay suh fees;
f) Prescribe the forms that are required for the purposes
of this subheading;
g) Prescribe the competency requirement of persons
who are carrying out the verification procedures and
practies;
h) Provide for penalties for the contravention of the
provisions of the rules made herunder of a fine not
exceeding twenty-five thounsand ringgit or
imprisonment for a term not exceeding two years or
to both”.

Amendment of section 306C

6. Section 306C of the ordinance is amended-

a) By inserting after the definition of “ authorised

officer” the following definition:

“Certificate” means a valid document, by

whatever bame it may be knowb, issued under this Part
or recognised by the Director of Marine;’;

b) In the definition of “ discharge”-

I. In paragraph (i), by deleting the word “or”

appearing at the end of the paragraph;

21
 II. In paragraph (ii), by inserting after the semicolon
the word “or”; and
III. By inserting after paragraph (ii) the following
paragraph:

“(iii) release of harmful subtances directly arising

from the exploration, exploitation and associated
off-shore processing of sea-bed mineral
resources;”; and

c) By substituting for the definition of “ Malaysian

waters” the following definition:

“Malaysian waters” means the territorial waters of

malaysia as determined in accordance with the
Emergency (Essential Powerts) Ordinance no. 7
1969 [P.U. (A) 307A/ 1969];’.

New section 306CA

7. The Ordinance is amended by inserting after section 306C the

following section:

“Prohibition of discharge of iol or harmful substance.

306CA. (1) Subject to subsection (2) and any circumstances

as may be specified in the rules or Malaysia Shipping Notice, the
discharge of oil or harmful substances into any part of Malaysian
reef is prohibited.

(2) Subsection (1) shall not apply to any discharge of oil

or harmful substances-

a) Which is necessary for the purpose of securing

the safety of a ship or
saving life at sea;
b) Resulting form damage, other than intentional
damage, to a ship or its equipment and, all
reasonable precautions hane been taken after the
occurrence of the damage or discovery of the
discharge for the purpose of preventing or, if it
could not be pevented, stopping or minimizing the
discharge; or
d) Which is for the purpose of combating specific
pollution incidents in order to minimise damage
from pollution and is approved by the Director of
Marine and, where the discharge accurred within

22
 the jurisdiction of the government of a country
other than Malaysia, by that government.

(3) For the purposes of subsection (2), damage to a ship or

its equipment shall be deemed to be intentional damage if the
damage arose in circumstance in which the owner or master
of the ship-

a) Acted with intent to cause the damage;

or
b) Acted in a reckless manner and with
knowlegde that the damage would
probably result.

(4) Any person who contravenes subsection (1) shall be

liable for each offence to a fine not exceeding fifty thousand
ringgit or to imprisonment for a term not exceeding two tears
or to both.”

New sections 306JA and 306JB

8. The Ordinance is amended by inserting after section 306J the

following sections:

“Investigation of a maritime casualty.

306JA. (1) Where a maritime casualty has accurred, the

Director of Marine may cause an investigation to be conducted
by a port officer or an authorised officer to determine the nature
and causes of the maritime casualty or damage which the ship
has sustained or the extent of damage caused to Malaysian
waters, any Malaysian coast or Malaysian reef.

(2) The person conducting the invertigation under

subsection (1) shall have the powers of an Inspector under the
Ordinance and shall submit the findings of such investigation to
the Director of Marine.

Protection of acts done in exercise of certain powers of the

Government.

306JB. The Government shall not be held liable in any

circumstances where any discharge of iol or harmful substances
is in consequence of the exercise of any of its powers in relation
to the remoral of wrecks, preventing an obstruction or danger to
navigation, or the disposal of sunk, stranded or abandoned
vessels.”

23
New sections 306L, 306M, 306N, 306O, 306P, 306Q and 306R

9. The Ordinance is amended by inserting after section 306K the

following sections:

“Issuance of certificate or interim certificate.

306L. (1) The Director of Marine may, upon receipt of a written

application from an owner of a ship and upon being satisfied that
the ship has complied with all the requirements of this Part, the
rules made hereunder or the technical requirements relating to
marine pollution as issued by the Director of Marine in Malaysia
Shipping otices, issue a certificate in the prescribed fee.

(2) The Director of Marine may issue the certificate

in pursuance of subsection (1) subject to any conditions or
restrictions that he may deem fit to impose.

(3) The Director of Marine may, pending the issuance

of the certificate, issue an interim certificate subject to such
conditions or restrictions as he may deem fit to impose.

Revocation of certificate or interim certificate

306M. (1) The Director of Marine may at any time revoke

the certificate or interim certificate issued under section 306L to
the ship if he is satisfie that-

a). There has been a contravention of any provision of

this Part, any rules made hereunder or nay technical
requirements relating to marine pollution as issued by the
Director of marine in Malaysia Shipping Notices; or

b). There has been a breach of any condition or

restrition of the certificate or interim certificate,

Provided that to no certificated or interim certificate shall be

revoked unless the holder of the certificate or interim
certificate has been given a reasonble opportunity of making a
representation against the intended revocation.

Merchant Shipping (Amendment and Extension)

Replacement of certificate or interim certificate

306N. (1) Where the certificate or interim certificate

issued under section 306L is lost, defaced or destroted, the
director of Marine may, upon receipt of an application from
the owner of the ship and upon payment of the prescribed fee,
issue a certificate or interim certificate, provided that the

24
owner of the ship proves to the satisfaction of the director of
Marine that ha has not caused or contributed to the loss,
defacement or destruction of the original certificate or interm
certificate.

(2) Where the original certificate or interim certificate is

found after the certificate or interim certificate has been
issued in pursuance of subsection (1), the original certificate
or interim certificate shall be deemend to have been revoked
and of no effect.

Authorisation to issue, replace or revoke certificates etc.

306o. (1) Notwithstanding section 306L, the Director of

Marine may authorise in writing any person or organisationto
issue, replace or revoke certificate or interim certificates in
accordance with the provisions of this part.

(2) Every certificate or interim certificate issued by any

person or organisation authorised under subsection (1) shall
have effect for the purposes of this Part as if it hasd been
issued by the Director of Marine.

Recorgnition of certificate

306P. The Director of Marine may recognise a certificate

issued to a ship by or under the authority of another party to
an international convention relating to marine pollution, if he
is satisfied that the requirements of the convention are fully
complied with.

Inspection and detention of ship

306Q. (1) The Director of Marine or any authorised officer

may go on board and inspect any ship and if satisfied after the
inspection that there is a contravention of any provision of this
Part or any rules made hereunder, or that the ship has failed
to comply with any cindition or restriction of the certificate,
the Director of Marine may detain the ship.

(2) The Director of Marine may allow the ship detained

under subsection (1) to leave any port or place in Malaysia or
Malaysian waters for the purpose of continuing its voyage
directly to the nearest and apporopriate ship repair facility.

(3) The Director of Marine or an authorised officer shall

no, in execising ha powers under this section, unreasonably
detain any ship.

25
 Prohibition of foreign ships entering Malaysian waters for
reason of non-compliance

306R. Where the Director of Marine has reasonable

grounds to believe that a foreign ship dios not comply with
any provision of this Part or the rules made hereunder that is
applicable to such ship, he may prohibit the ship from entering
any area of Malysian waters.”

Amendment of section 491B

10.Subsection 491B(1) of the Ordinance is amended-

a) in paragraph (i), by deleting the word “or”

appering at the end of the paragraph;
b) in paragraph (j), y substituting for the
comna at the end of the paprgraph a
semicolon; and
c) by inserting after paragraph (j) the following
paragraphs:

(k) ship-to-ship activity; or

(l) any other activity as detrmined by the
director of Marine,”

New Section 519A

11.The Ordinance is amended by inserting after section 519 the

following subheading and section:

“Malaysia Shipping Notice.

Power Of Director of Marine to issue Malaysia Shipping

Notices.

519A.(1) Subject to the provisions of the Ordinance, the

Director of Marine may issue Malaysia Shipping Notices in

26
 respect of administrative matters and, technical matters
relating to shipping, navigation, maritime transport safety and
security and marine ppllution, as may be necessary for the
purposes of the Ordinance.

(2) The Director of Marine may, in the Malaysia Shipping

Notice, prescribe that any provision of that notice shall be
appicable to any specified person or ship, or classes of ships.

(3) The rules relating to shipping, navigation, maritime

transport safety and security and marine pollution made in
pursuance of this Ordinance may provide that non-compliance
with Malysia shipping Notice shall be an offence.”

Extension of the Ordinance to the Federal Territory of

Labuan

12. Subject to the Constitition (Amendment) (No. 2) Act

1984 [Act A585], the
Ordinance is extended to the Federal Territory of Labuan.

The Merchant Shipping Ordinance 1960 of Sabah

ceases to have effect in the Fedreal Territory of Labuan

13. (1) The Merchant Shipping Ordinance 1960 of Sabah

[Sabah Ord. 11/1960] shall, on the date of coming into
operation of this Act, cases to have effect in the Federal
Territory of Labuan.

(2) Any port or place in the Federal Territory of Labuan

declared to be a port under the Merchant Shipping Ordinance
1960 of sabah shall be deemed to be aport as declared under
the Ordinance.

(3) Any exemption, permit or licence issued or granted

under the Merchant shipping Ordinance 1960 of sabah in the
Federal Territory of Labuan before the date of coming iato
operation of this Act, shall on the date of coming inti operation
of this Act continue to be in force and have effect until it
expires, or for a period of one year after the date of coming
into operation of this Act, whichever is the earlier.

(4) Upon the expiry of the exemption, permit or licence

or after the period of one year after the date of coming into
operation of this act, whichever is the earlier, the applicant
may apply for an exemption, permit or licence in accordance
with the provisions of the Ordinance.

27
 (5) All application, approvals or, decisions on appeal or
otherwise, pending under the Merchant Shipping Ordinance
1960 of Sabah in the Federal Territory of Labuan before the
date of coming into operation of this Act, shall on the date of
coming into operation of this Act continue to be dealt with as
if this act had not been enacted.

(6) All registers, log books and other documents kept

and maintained under the Merchant Shipping Ordinance 1960
of Sabah in the Federal Territory Of Labuan before the date of
coming into operation of this Act, shall on the date of coming
into operation of this Act be deemed to be registers, log books
and documents kept and maintained under the Ordinance.

(7) Any proceedings, whether civil or criminal, or cause

of action pending or existing before the date of coming into
the operation of this Act, shall on the date of coming into
operation of this Act, continue to be dealt with as if this Act
had not been enacted.

Extension of Parts V and VA of the Ordinance to Sabah and

Sarawak

14. (1) The provisions of Parts V and VA of the Ordinance are

extended to the States of Sabah and Sarawak

(2) Such of the definitions in section 2 of the Ordinance as are

necessary to give effect to the extended provisions of the Ordinance
shall apply to those extended provisions .

(3) Where references are made in the extended provisions of

the Ordinance to other provisions in the Ordinance, such provisions
of the Ordinance shall apply to those extended provisions to such
extent as may be necessary to give effect to the extended
provisions of the Ordinance.

Repeal of provisions in written laws of Sabah and Sarawak

corresponding to the provisions of Part V of the Ordinance

15. The provisions of any written law corresponding to the

provisions of Part V of the Ordinance and in force in the State of
Sabah and Sarawak immediately before the date or dates appointed

28
under subsection 1(3) shall, upon the date or dates so appointed, be
deemed to be repealed.

Provisions of Part V of the Ordinance to prevail over inconsistent or

contrary written law

16. The provisions of Part V of the Ordinance shall prevail

notwithstanding anything inconsistent with or contrary to those
provisions in other written law.

References to “ Ordinance” in the Merchant Shipping Ordinance

1960 of Sarawak include references to extended provisions

17. In the Merchant Shipping Ordinance 1960 of Sabah and the

Merchant Shipping Ordinance of Sarawak [Sarawak Ord. 2/1960],
any reference to such Ordinances shall be construed as including a
reference to the provisions of the Merchant Shipping Ordinance
1952 as extended by this Act.

Amendment of the Merchant Shipping Ordinance 1960 of Sabah

18. The Merchant Shipping Ordinance 1960 of Sabah is amended in

the manner as specified in the First Schedule.

Amendment of the Merchant Shipping Ordinance 1960 of Sarawak

19. The Merchant Shipping Ordinance 1960 of Sarawak is amended

in the manner as specified in the Second Schedule.

Validation

20. (1) All Malaysia Shippng Notices issued by the Director of Marine
before the coming into operation of this Act shall be valid and have
effect as if the said Malaysia Shipping Notices have been made
under the appropriate provisions of the Ordinance and shall be
deemed to have come into operation from the date on which it
came into operation or was purported to have come into operation.

(2) Any decision or order given in respect ogf any person or any
other act or thing whatsoever done or omitted to be done under or
by virtue of any Malaysia Shipping Notice whensoever made or
purported to have been made is declared lawful and hereby
validated.

29
 FIRST SCHEDULE

[Section 18]

AMENDMENTS TO THE MERCHANT SHIPPING ORDINANCE 1960 OF

SABAH

(1) (2)
Provisions Amendments

Section 2 (1) Substitute for the definition of

“collision regulations”
regulations for the following definition
:

“collision regulations” means

regulations made under
section 252 of the Merchant
Shipping Ordinance 1952 of
the Federation
of Malaya (Ord. 70/1952)”

(2) Subsitute for the definition of “radio

rules” the
following definition :

“radio rules” means rules made

under
section 262 of the Merchant
Shipping
Ordinance 1952 of the
Federation of
Malaya”
(3) Substitute for the Definition of “Safety
Convention” the
following definition:

“Safety Convention” menas the

International
Convention for the safety of
Life at Sea signed in
London on 1 November 1974;
and if any
amendment of the Safety
Convention comes into

30
 force with respect to
Malaysia, refersnces in this
Ordinance to the Safety
Convention shall, unless
the context otherwise
requires, be cinstrued ad
referece to the Safety
Convention as amended.

(4) Delete the definition of ‘”Safety

Convention country”.

Merchant Shipping (Amendment and Extension)

SECOND SCHEDULE

[section 19]

AMENDMENTS TO THE MERCHANT SHIPPING ORDINANCE 1960 OF

SARAWAK

(1) (2)
provisions Amendments

Section 2 (1) Substitute for the definition of “collision

Regulation the following definition:

“collision regulations” means

regulayions made under section 252 of the
Merchant Shippng Ordinance 1952 of the
Federation Malaya [Ord. 70/1952]

(2) Substitute for the definition of “ radio

rules” the following definition:

“radio rules” means rules made under

section 262 of the Merchant Shipping Ordinance
1952 of the Federal of Malaya;

31
 (3) Substitute for the definition of
“safety convention” the following definition:

“Safety Convention” means the

International Convention for the safety of life at
sea signed in London on 1 November 1974; and
if any amendment of the safety convention
comes into force with respect to Malaysia,
references in this Ordinance to the Safety
Convention shall, unless the Context requires,
be construed as references to the Safety
Convention as amended;

(4) Delete the definition of “

Safety Convention country".

Bill

EXPLANATORY STATEMENT

This Bill seeks to amend the Merchant Shipping Ordinance 1952

(“Ordinance”) and to extand specified provisions of the Ordinance to
the Federal Territory of Labuan and the States of Sabah and
Sarawak.

2. Clause 1 contains the short title and the power of the Minister
to appoint the commencement date of the proposed Act.

3. Clause 2 seeks to amend section 2 of the Ordinance a new

definition into the Ordinance.

4. Clause 3 and 4 introduce into Part V of the Ordinance a new

subheading titled “Maritime Transport Security” that contains new
sections 249A to 249AB.The new provision seek to give effect to the
International Ship and Port Facility Security Code that was
introduced as a new chapter in the International Convention for the
Life at sea (SOLAS) 1974.These provision s deal specifically with
maritime security and provide for an elaborate standand to enhance
measures against security threats on board ships, maritime
transport security areas and marine facilities.

32
 Section 249D provides that the Director of Marine shall be the
Deisgnated Authority for the purposes of this subheading.The
Designated Authority may declare a maritime transport security
area and designate a marine facility in pursuance of sections 249E
and 249F, respectively.Under section 249P, the Designated Authority
may require a declaration of security to be completed if the is
satisfied that the ship-marine facility interface or ship-to ship
activity poses arisk to persons, property or the environment. At the
same time, the master of a ship or Ship Security oficer may request
for a declaration of security under the circumstances as set out in
section 249Q. Section 249S contains provisions relating to the
measures to be taken by the designated Authority when there is a
threat to the security or any person or thing, including any ship,
maritime transport security area or marine facility. Provisions
concerning equivalent security arrangements and alternative
security arrangements are contined in sections 249w and 249Y,
respectively.The Minister is empowered to make maritime transport
security rules under section 249AB in respect of any matters relating
to maritime transport security, including the issuance of
International ship Security Certificates and Statement of Compliance
of maritime transport security areas and Review of security
assesment and security plans for ships, maritime transport security
aeres and designated marine facilities.

5. Clause 5 introduces into Part V opf the Ordinance a new

subheading titled ” safe Operation of ships” that contains new
sections 249AC to 249AO. The new provisions seek to give effect to
the International Management Code for the Safe Opration Of Ships
and for pollution Prevention which was introduced as a new chapter
in SOLAS 1974.

Merchant Shipping (Amendment and extension)

Section 249AF provides that the Surveyor-General of ships

shall exercise general direction and supervision over all matters
relating to be safe operation of ships and protection of the
environment. Every company shall in pursuance of section 249AH
develop, implement and maintain a Safety Management System
that includes requirements such as safety and environmental-
protection policies. Section 249AO empowers the Minister to make
safety rules that deal with the management and safe pratices in
ship operation, including imposing greater commitments,
responsibilies and obligations upon ship owners and companies

33
responsible for the management of ships to ensure the safe
operation of their ships and for providing a safe working
environment on board ships.

6. Clause 6 seeks to introduce new definitions and amend an

existing definition for the purposes of Part VA of the Ordinance.

7. Clause 7 seeks to introduce a new section 306CA into the

Ordinance that prohibits the discharge of oil or harmful substances
into any of Malaysian waters, any Malaysian reef. However, the
provisions of the section will not apply in certain specified
circumstances.

8. Clause 8 seeks to introduce two new sections, namely

sections 306JA and 306JB. Section 306JA provides that the Director of
Marine may cause to be conducted investigations into maritime
casualties, while section 306JB sets out the circumstances where the
Government will not be liable for acts that cause discharge of oil or
harmful substances.

9. Clause 9 seeks to introduce new sections 306L, 306M, 306N,

306O, 306P, 306Q and 306R into Part VA. Section 306L provides that
the Director of Marine may issue certificates or interim certificates
under Part VA, while section 306O provides that the Director of
Marine may authorise any personor organisation to issue such
certificates or interim certificates. Section 306P empowers the
Director of Marine to recognize certificate issyed by the authority of
another party to an international convention. Section 306Q provides
for the inspection and detention of ships by the Director of Marine to
prohibit forign ships from entering Malaysia waters if the provision
of Part VA are not complied with.

10. Clause 10 seeks to amend section 491B of the Ordinance to

include further activities for the purposes of Part XIIA of the
Ordinance.

11. Clause 11 seeks to introduce a new section 519A that

empowers the Director of Marine to issue Malaysian shipping
Notices.

12. Clause 12 provides for the extension of the provision of the

Ordinance to the Federal Terrority of Labuan.

13. Clause 13 provides for the cessation of the application of the

merchant shipping Ordinance 1960 of Sabah[Sabah Ord. 11/1960] to
the Federal Territory of Labuan on the date of coming into operation
of the proposed Act.

34
14. Clause 14 seeks to extend the application of Part V and VA of
the Ordinance to the States of Sabah and Sarawak in order to
ensure uniformity in the procedures on maritimetransport security
and standards of safety of Malaysian ships, and the control of
pollution from ships.
15. Clause 15 to 19 provide for modifications and consequential
amendments that are required for the purposes of the
implementation of Part V of the Ordinance to the State of Sabah and
Sarawak.

16. Clause 20 provides for the validation of all Malaysia Shipping

Notices issued by the Director of Marine prior to the coming into
operation of the proposed Act, and the validating of all decisions
and orders made in pursuance of such notices.

17. Other amendments not specifically dealt with in this

Statement are minor or consequential in nature.

FINANCIAL IMPLICATIONS

This Bill will involve the Government in extra financial expenditure

the amount of which cannot at present be ascertained.

[PN(U2)2433]

35
36