Mso 1952 (2017)

Merchant Shipping (Amendment) 1
LAWS OF MALAYSIA
Act A1551
MERCHANT SHIPPING (AMENDMENT) ACT 2017

2 Laws of Malaysia Act A1551
Date of Royal Assent ... ... 10 November 2017
Date of publication in the

Gazette ... ... ... 30 November 2017
Publisher’s Copyright C
PERCETAKAN NASIONAL MALAYSIA BERHAD
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(Appointed Printer to the Government of Malaysia).
LAWS OF MALAYSIA
Act A1551
MERCHANT SHIPPING (AMENDMENT) ACT 2017
An Act to amend the Merchant Shipping Ordinance 1952 and to

extend specified provisions of the Ordinance to 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)

Act 2017.
(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 of Sabah and Sarawak, appoint by
notification in the Gazette.
General amendment
2. The Merchant Shipping Ordinance 1952 [Ordinance 70/1952],

which is referred to as “the Ordinance” in this Act, is amended—
(a) by substituting for the words “steamer” and “steamship”
wherever appearing the word “ship”; and
(b) by substituting for the words “steamers” and “steamships”
wherever appearing the word “ships”.
Amendment of section 2
3. Section 2 of the Ordinance is amended—

(a) by substituting for the definition of “Malaysian ship” the
following definition:
‘ “Malaysian ship” means a ship registered or
licensed under Part II;’;
(b) by inserting after the definition of “port officer” the

following definition:
‘ “port undertakings” means the operation and
maintenance of port and includes port-related activities
at a port which is under the authority of the Director
of Marine;’;
(c) by substituting for the definition of “registrar” the following

definition:
‘ “Registrar” means the Registrar of Ships appointed
under subsection 12(1);’;
(d) by deleting the definition of “Registrar General”; and

(e) by inserting after the definition of “seafarer” the following
definition:
‘ “service undertakings” means any services rendered
by the Director of Marine to implement Malaysia’s
flag state obligations or other services rendered by
him to facilitate the shipping industry;’.
Deletion of section 3
4. The Ordinance is amended by deleting section 3.
Amendment of section 10
5. Section 10 of the Ordinance is amended—

(a) by substituting for the words “Yang di-Pertuan Agong”
wherever appearing the words “Director of Marine”;
(b) in subsection (2a)—
(i) by substituting for the words “, for special purposes
and on special occasions, any person, whether
or not a citizen of Malaysia,” the words “any
person or organization”; and
(ii) by inserting after the words “such a person” the
words “or organization”; and
(c) in subsection (5)—
(i) in paragraph (a), by deleting the words “such
steamers and”;
(ii) by substituting for the words “; and” at the end
of paragraph (b) a semicolon;
(iii) by substituting for the full stop at the end of
paragraph (c) a semicolon; and
(iv) by inserting after paragraph (c) the following
paragraphs:
“(d) the requirements for appointment of
any person or organization under
subsection (2a);
(e) the requirements that the person
or organization appointed under
subsection (2 a ) shall fulfil when
performing his or its functions; and
(f) the manner in which the person
or organization appointed under
subsection (2a) is to be regulated.”.
New section 10a
6. The Ordinance is amended by inserting after section 10 the

following section:
“Licensing 10a. (1) Except in relation to ports where a port

of service
or port authority has been established by law, the authority
undertakings. for ports shall be the Director of Marine.
(2) The Director of Marine may issue a licence

to any person to provide service undertakings or port
undertakings under this Ordinance.
(3) Before exercising his power under subsection (2),

the Director of Marine shall prepare and submit to
the Minister a service plan for his approval.
(4) No service plan shall be put into effect until

it has been approved by the Minister.
(5) A licence issued under this section shall set out

the following matters:
(a) the functions to be performed by the licensee;
(b) the particular duties of the licensee in respect
of the functions to be performed by the
licensee;
(c) the compliance by the licensee of the
performance standards as determined by the
Director of Marine;
(d) the duration of the licence; and
(e) such other matters or conditions as the Director
of Marine thinks fit.
(6) The Minister may make regulations as may be

necessary or expedient for giving full effect to or for
carrying out the provisions of this section.
(7) Without prejudice to the generality of subsection (6),

the Minister may make regulations—
(a) to prescribe the annual fee payable by the
licensee;
(b) to prescribe the fees and charges which shall
be charged by the licensee in respect of the
functions performed by the licensee;
(c) to prescribe the qualifications of persons
to be employed by the licensee;
(d) to prescribe the type of records to be kept
by the licensee; and
(e) to prescribe the type of returns to be submitted
by the licensee to the Director of Marine at
certain intervals.
(8) If the licensee contravenes any condition of

the licence or any of the provisions of this section
or the regulations made under this section and fails
to remedy such contravention within a stipulated time
period, the Director of Marine may revoke the licence
issued to the licensee under subsection (2).”.
Substitution of Parts IIa, IIb and IIc
7. The Ordinance is amended by substituting for Parts IIa, IIb

and IIc the following Parts:
“Part II
REGISTRATION AND LICENSING OF SHIPS
Preliminary
Interpretation. 11. (1) In this Part, unless the context otherwise

requires—
“authorized officer” means any person appointed

by the Director of Marine as an authorized officer
under section 68g;
“bareboat charter” means the hiring of a ship to

a charterer under bareboat charter terms;
“bareboat chartered-in ship” means a ship on a

bareboat charter registered as a Malaysian ship under
this Part;
“bareboat charter terms” means the hiring of a ship

for a stipulated period on the terms which give the
charterer possession and control of the ship, including
the right to appoint the master and crew of the ship;
“certificate of registry” means a certificate of registry,

a provisional certificate of registry or a certificate of
bareboat charter registry issued under this Part;
“licensing officer” means a public officer appointed

under section 56;
“Register” means the Malaysia Ship Register or

Malaysia International Ship Register maintained by
the Registrar under section 14;
“representative person” means a person appointed

under subsection 20(3).
(2) In this Part, unless the contrary intention

appears—
(a) owner is the person or persons whose name
appear in the Register or record of licences;
(b) a reference to the owner of a ship shall, if
there is more than one owner, be read as a
reference to each of the owners; and
(c) a reference to a ship includes a reference to
a share or part of a ship.
(3) Where in relation to a ship or to any matter

connected with a ship, any provision of this Part that
imposes a duty or liability on the owner of the ship
or provides for the service of a notice on the owner
of the ship—
(a) owner means the owner of a registered ship
or a ship to be registered;
(b) in the case of a ship registered under the

Malaysia International Ship Register, owner
includes the representative person; or
(c) in the case of a bareboat chartered-in ship,
owner means the bareboat charterer,
provided that nothing in this subsection shall prejudice

the operation of that provision in so far as it imposes
the duty or liability on any person other than the owner.
Registry
Registrar 12. (1) The Director of Marine may appoint a public

and Deputy
Registrar. officer to be the Registrar of Ships and such number
of public officers to be the Deputy Registrar of Ships.
(2) The Deputy Registrar of Ships shall, subject

to the control of the Registrar of Ships, perform the
functions of the Registrar of Ships and have all the
powers of the Registrar of Ships under this Part.
Functions 13. (1) The functions of the Registrar are—

and powers
of Registrar.
(a) to maintain the Register;
(b) to issue a certificate or document which is
required to be issued by him under this Part,
and to rectify, suspend, cancel, revoke or
terminate the certificate or document;
(c) to require information or documents to be
furnished under this Part and to require the
surrender of certificates and other documents
issued under this Part;
(d) to issue copies of or extracts from any
certificates or documents, and entries in the
Register; and
(e) to have overall administrative control of the
ship registration office and its branch offices.
(2) Notwithstanding subsection (1), the Registrar

shall have the power to do all things necessary or
expedient to be done, in connection with, or incidental
to the performance of his functions.
Register. 14. (1) The Registrar shall maintain a Malaysia Ship

Register and a Malaysia International Ship Register.
(2) The Register shall contain—

(a) particulars of ships, owners, including bareboat
charterers, mortgagees and representative
persons, and their respective interests in the
ships;
(b) particulars of division of shares in a ship
which may be divided into any number of
shares and shall not be changed unless the
ship is registered anew; and
(c) any other particulars as may be determined
by the Director of Marine.
(3) The Registrar shall maintain the Register in both

physical or electronic form as may be determined by
the Director of Marine.
Rectification 15. The Registrar may rectify the Register if a

of Register.
clerical error has occurred and sufficient evidence is
produced to satisfy him that the entry is incorrect,
and on making the rectification he may, if necessary,
issue a new certificate of registry.
Instructions. 16. The Director of Marine may issue instructions in

writing which shall be consistent with this Ordinance
to the Registrar if the Director of Marine thinks
necessary or expedient for the better carrying out of
the provisions of this Part.
Ship 17. The Director of Marine may establish a ship

registration
office. registration office and such number of branch offices
of the ship registration office as he thinks necessary.
Registration of Ships
Ship must be 18. (1) Subject to this Ordinance or any other written
registered.
law, no ship shall be within Malaysian waters or the
exclusive economic zone unless the ship is registered
in Malaysia as a Malaysian ship or registered in any
other country.
(2) The owner or master of a ship who contravenes

subsection (1) commits an offence and shall, on conviction,
be liable to a fine not exceeding one hundred thousand
ringgit or to imprisonment for a term not exceeding
two years or to both.
Qualification 19. A person is qualified to own a Malaysian ship—

to own
Malaysian
ship. (a) to be registered under the Malaysia Ship Register
if the person is—
(i) a Malaysian citizen; or
(ii) to an extent as may be determined by
the Minister, a body corporate
incorporated in Malaysia;
(b) to be registered under the Malaysia International
Ship Register if the person is—
(i) a Malaysian citizen or, subject to
subsection 20(3), a non-Malaysian
citizen;
(ii) a body corporate incorporated in
Malaysia; or
(iii) subject to subsection 20(3), a body
corporate incorporated outside
Malaysia; or
(c) to be registered under the Malaysia Ship
Register or Malaysia International Ship
Register if the person is the charterer of a
ship under bareboat charter terms.
Application 20. (1) An application for registration as a Malaysian

and
requirements ship under the Malaysia Ship Register or Malaysia
for
registration.
International Ship Register—
(a) shall be made to the Registrar in the form
as may be determined by the Director of
Marine;
(b) shall be accompanied by any documents that

can certify compliance in relation to—
(i) the safety standard of the ship;
(ii) the risk of pollution from the ship; and
(iii) the safety and welfare of persons
engaged on board the ship; and
(c) shall be accompanied by any document
containing the following particulars:
(i) the name of the ship and its existing
tonnages (if known);
(ii) a statement of the date when and the
place where the ship was built, or
if the date and place of building
are not known, a statement that the
owner or bareboat charterer does
not know the date and place of the
building of the ship;
(iii) a statement as to the owner of the ship
and the citizenship of the owner, and
if the ship is owned by more than
one person, the number of shares
each owner is entitled to;
(iv) a statement that no other person
is entitled as owner to any legal or
beneficial interest in the ship or any
share of the ship; and
(v) such other particulars as may be
determined by the Director of Marine.
(2) The applicant shall ensure that steps are taken to

comply with the requirements for survey and measurement
of ship, ship’s name and marking of ship as stipulated
in sections 21, 22 and 23.
(3) Where an application to register a ship as a

Malaysian ship under the Malaysia International Ship
Register is made by a non-Malaysian citizen or a
body corporate incorporated outside Malaysia, the
non-Malaysian citizen or body corporate must appoint
a representative person who shall be—
(a) a Malaysian citizen having his permanent
residence in Malaysia; or
(b) a body corporate incorporated in Malaysia
and having its principal place of business in
Malaysia,
and the non-Malaysian citizen or body corporate shall

ensure that, so long as the ship remains registered, a
representative person is so appointed.
(4) The representative person appointed under

subsection (3) shall—
(a) file documents or furnish information required
to be filed or furnished under the Ordinance;
and
(b) accept service of any documents required to be
served on the owner relating to the proceedings
for any offence.
(5) Where an application to register a ship as a

Malaysian ship is made in respect of a ship which
has at any time been registered under the law of
another country, the application shall be accompanied
by evidence to establish—
(a) that the ship is no longer registered under the
law of another country;
(b) that steps have been taken to terminate the
registration of the ship under the law of
another country; or
(c) in the case of a bareboat chartered ship, that
the registration of the ship at its primary
registry has been suspended or that consent
of the authority of primary registry has been
obtained to suspend the registration of the
ship at the primary registry.
Survey and 21. (1) Before the registration of a ship as a Malaysian

measurement
of ship. ship the owner shall cause the ship to be surveyed
and measured by a Surveyor of Ships and the tonnage
ascertained in accordance with any regulations made
under this Part.
(2) The Surveyor of Ships shall grant a certificate

specifying the ship’s tonnage and build and such other
particulars descriptive of the identity of the ship as
may be required by the Registrar.
(3) The certificate of measurement shall be delivered

to the Registrar before registration.
Ship’s name. 22. (1) The Registrar may require that the proposed
name for a ship intended to be registered under this
Part be submitted to him for his approval in the form
as he may determine.
(2) The Registrar may refuse to approve a proposed

name for a ship if the name is—
(a) undesirable, unacceptable or inappropriate;
(b) a name with intention to mislead;
(c) made up of initials only;
(d) registered in the Register to another ship; or
(e) a name that has been de-registered in the Register,
unless for the purpose of re-registration of
the same ship it was registered under.
(3) The owner of a Malaysian ship shall not change

the name of the ship, or cause or permit any such
change, without the prior written permission of the
Registrar and the payment of the prescribed fee.
(4) A person may, subject to the payment of the

prescribed fee, apply to reserve a prefix or suffix for
a ship in accordance with the regulations made under
this Ordinance.
Marking of 23. (1) A ship shall, before it is registered, be marked

ship.
permanently and conspicuously to the satisfaction of
the Registrar in accordance with any regulations made
under this Part.
(2) The markings on a ship shall be permanently

maintained, and no alteration shall be made to them
except where any of the particulars denoted by the
markings are altered in the manner as provided in
the regulations made under this Part.
(3) An owner or master of a ship who fails to

maintain the ship marking as required by this section
or the regulations made under this Part commits an
offence and shall, on conviction, be liable to a fine
not exceeding twenty-five thousand ringgit or to
imprisonment for a term not exceeding one year or
to both.
(4) If the scale showing the ship’s draught of water is

in any respect inaccurate so as to be likely to mislead,
the owner of the ship commits an offence and shall,
on conviction, be liable to a fine not exceeding one
hundred thousand ringgit or to imprisonment for a
term not exceeding two years or to both.
(5) A person who, otherwise than as provided under

this section or the regulations made under this Part—
(a) conceals, removes, alters, defaces or obliterates;
or
(b) suffers any person under his control to conceal,
remove, alter, deface or obliterate,
any marking required by this section or the regulations

made under this Part commits an offence and shall,
on conviction, be liable to a fine not exceeding two
(6) The Director of Marine may, upon receipt of

a certificate from the Surveyor of Ships specifying
that a ship is insufficiently or inaccurately marked,
detain the ship until the insufficiency or inaccuracy
has been remedied.
Additional 24. Upon receipt of an application for registration

information
and of a ship as a Malaysian ship, the Registrar may
documents require the applicant to furnish additional information
and inspection
of ship. or documents relating to the ship and the Registrar
may go on board the ship to inspect the ship and any
documents relating to the ship.
Registration 25. (1) If the Registrar is satisfied that the requirements

and refusal
to register. relating to registration of a ship as a Malaysian ship
have been fulfilled, the Registrar shall register the
ship and enter the particulars in the Malaysia Ship
Register or Malaysia International Ship Register, as
the case may be.
(2) Notwithstanding subsection (1), the Registrar

shall not—
(a) in the case of a registration under the Malaysia
International Ship Register, register a ship
that is above the prescribed age and tonnage;
or
(b) register a bareboat chartered ship as a Malaysian
ship without the approval of the Minister.
(3) The Registrar may refuse to register a ship as

a Malaysian ship if he is satisfied that the applicant
has not complied with any of the requirements for
registration.
(4) If the Registrar refuses to register a ship as

a Malaysian ship, he shall serve a notice on the
applicant within fourteen working days from the date
of application stating the refusal and the grounds of
such refusal.
Provisional 26. (1) Notwithstanding subsection 25(3), the

registration.
Registrar may, subject to conditions and restrictions
as may be determined by the Director of Marine,
provisionally register a ship as a Malaysian ship and
issue a provisional certificate of registry.
(2) A provisional certificate of registry issued by

the Registrar shall have the same effect as a certificate
of registry and the provisions of this Part relating to
certificate of registry shall apply to the provisional
certificate of registry.
Prohibition of 27. (1) Notwithstanding subsections 25(1) and 26(1),

registration.
the Minister may, by a certificate issued to the Registrar,
prohibit the registration of a ship as a Malaysian ship
under this Part if he is satisfied that such registration
will be prejudicial to the national interest.
(2) The certificate issued under subsection (1)

shall be admissible in evidence and shall constitute
prima facie proof of the facts set out in the certificate
without proof of the signature of the Minister to such
certificate.
Certificate of 28. (1) Upon registration of a ship as a Malaysian

registry.
ship, the Registrar shall, on payment of the prescribed
registration fee, annual tonnage fee and any other
fee, issue a certificate of registry or, in the case of
a bareboat chartered-in ship, a certificate of bareboat
charter registry.
(2) A certificate of registry shall be valid for a

period as may be determined by the Registrar and
may be renewed.
(3) The master or owner of a Malaysian ship shall

not use or permit the use of, for the purpose of
navigation of the ship, a certificate of registry that
has not been issued under this section or has expired
and is not in force in respect of the ship.
(4) The master or owner of a Malaysian ship who

contravenes subsection (3) commits an offence and
shall, on conviction, be liable to a fine not exceeding
one hundred thousand ringgit or to imprisonment for
a term not exceeding two years or to both.
(5) A ship registered under this Part may be detained

until the owner or master of the ship produces the
certificate of registry for that ship.
Duty to 29. (1) The master or owner of a ship which has

inform change
of particulars been registered as a Malaysian ship shall inform the
after Registrar of any changes to the particulars relating
registration.
to the ship to be updated in the Register.
(2) The master or owner of a Malaysian ship who

contravenes subsection (1) commits an offence and
fifty thousand ringgit or to imprisonment for a term
not exceeding two years or to both.
Custody of 30. (1) A certificate of registry shall be used only

certificate of
registry. for the lawful navigation of a ship, and shall not be
subject to detention to secure any civil right or claim.
(2) Where any person, whether interested in the

ship or not, refuses on request to deliver up the
certificate of registry when in his possession or under
his control to the person entitled to the custody of the
certificate for the purposes of the lawful navigation of
the ship, or to the Registrar, any authorized officer,
officer of customs, or other person entitled by law to
require such delivery, any Magistrate may summon the
person so refusing to appear before him, and to be
summarily examined before him, unless it is proved
to the satisfaction of the Magistrate that there was
reasonable cause for such refusal, that person commits
an offence and shall, on conviction, be liable to a
fine not exceeding one hundred thousand ringgit or
to imprisonment for a term not exceeding two years
or to both.
Issuance 31. (1) The Registrar may, on payment of prescribed

of new
certificate of fee, issue a new certificate of registry in lieu of the
registry. original if the certificate of registry is mislaid, lost,
defaced or destroyed.
(2) If a new certificate of registry is issued under

subsection (1), the original certificate of registry shall
be deemed to have been revoked.
Suspension of 32. The Registrar may suspend the registration of a

registration.
Malaysian ship—
(a) on the application of the owner; or
(b) if the ship is taken in war or hostilities, as
a result of which the owner or bareboat
charterer has lost control over the operation
of the ship.
Termination 33. The Registrar may terminate the registration of

of
registration. a Malaysian ship—
(a) on the application of the owner;
(b) where being a ship registered in the Malaysia
Ship Register, the ship ceases to be owned
by one or more persons qualified to own a
Malaysian ship;
(c) where being a bareboat chartered-in ship—
(i) the ship ceases to be operated under
a bareboat charter;
(ii) the rights and obligations of the
bareboat charterer under the bareboat
charter terms are assigned;
(iii) the primary registry in respect of the
ship is closed or annulled; or
(iv) t h e c o n s e n t r e f e r r e d t o i n
paragraph 20(5)(c) is revoked or
withdrawn;
(d) where being a provisionally registered ship—
(i) the owner of the ship fails to obtain a
deletion certificate from the previous
registry;
(ii) the ownership of the ship is in dispute;
or
(iii) the period of provisional registration
has lapsed;
(e) if the ship is broken up, or is an actual or

a constructive total loss such that it is no
longer capable of being used in navigation;
(f) i f t h e s h i p , o t h e r t h a n a b a r e b o a t
chartered-in ship, at the time of registration
remains registered in a place outside Malaysia;
(g) i f t h e s h i p , o t h e r t h a n a b a r e b o a t
chartered-out ship, subsequently becomes
registered in a place outside Malaysia; or
(h) if a representative person ceases to be appointed
in relation to the ship.
Deletion 34. (1) The Registrar may delete a Malaysian ship

from
Register. from the Register—
(a) on an application by the owner; or
(b) when the registration of the ship is terminated
in accordance with section 33.
(2) If an encumbrance has been registered on the

ship, the Registrar shall notify the circumstances of
the case to the holder of the rights, and the deletion
from the Register shall not affect the encumbrance
whatsoever and all its priorities shall remain.
Revocation 35. (1) The Registrar may revoke a certificate of

of certificate
of registry. registry of a Malaysian ship—
(a) when the registration of the ship is suspended;
or
(b) when the registration of the ship is terminated.
(2) A certificate of registry is deemed revoked when

the period of validity of the certificate of registry has
lapsed.
(3) Upon the revocation of a certificate of registry,

the owner or master of the ship shall surrender the
certificate of registry to the Registrar for cancellation.
(4) An owner or master who fails to surrender

the certificate of registry or continues to use the
certificate of registry upon its revocation, commits
or to both.
Notice of
registration,
36. Where a bareboat chartered ship is registered or
suspension where its registration is terminated or suspended, the
and Director of Marine shall notify the authority in the
revocation
to primary country of primary registry, of the particulars of the
registry. registration, termination or suspension.
Rights of 37. (1) Subject to any rights appearing in the Register

owner of
Malaysian to be vested in any person, the owner of a Malaysian
ship. ship has the right to dispose of the ship and give
effectual receipts for any money paid or advanced
by way of consideration in respect of the disposal.
(2) Notwithstanding subsection (1), any interests

arising under contract or other equitable interests may
be enforced by or against the owners and mortgagees
of ships in respect of their interest in the ship in the
same manner as in respect of any personal property.
Malaysian 38. (1) The Registrar may, subject to such conditions

ship on
bareboat as may be determined by the Director of Marine, give
chartered-out. consent to the owner of a Malaysian ship to register
the ship as a bareboat charter in another country,
where such ship shall be referred to as a “bareboat
chartered-out ship”.
(2) Notwithstanding subsection (1), the Minister

may disallow any Malaysian ship to be bareboat
chartered-out for any reason and duration as he thinks
fit.
(3) The registration of a bareboat chartered-out

ship shall be suspended while the ship is bareboat
chartered-out and re-registered in another country.
(4) The owner of a bareboat chartered-out ship shall

immediately surrender the certificate of registry of the
ship once the registration of the bareboat chartered-out
ship in another country is complete.
Transfers, transmission and mortgage
Transfer of 39. (1) Any transfer of a registered Malaysian ship

Malaysian
ship. or share therein shall be effected by a bill of sale.
(2) Where any registered Malaysian ship or a

share therein has been transferred in accordance with
subsection (1), the transferee shall not be registered
as owner of the ship unless—
(a) he has made an application to the Registrar
in the form as may be determined by the
Director of Marine; and
(b) the Registrar is satisfied that the ship
continues to be owned to an extent as may
be determined by the Minister by a person
who is qualified to own a Malaysian ship
and that he would not refuse to register
the ship.
(3) Where an application under subsection (2) is

granted by the Registrar, he shall register the bill of
sale.
Transmission 40. (1) Where the shares in a registered ship is

of shares in
Malaysian transmitted to any person by any lawful means other
ship. than by a transfer under section 39, that person shall
not be registered as the owner of the ship unless—
(a) he has made an application to the Registrar;
and
(b) the Registrar is satisfied that the ship
continues to be owned to an extent as may
be determined by the Minister by a person
who is qualified to own a Malaysian ship.
(2) Where an application under subsection (1) is

granted by the Registrar, he shall cause the applicant’s
name to be registered as the owner of the ship.
Transmission 41. (1) Where shares in a registered ship are

of shares in
registered transmitted to any person by any lawful means other
ship by order than by a transfer under section 39, but as a result of
of Court.
which the ship is no longer owned by a person who
is qualified to own a Malaysian ship, the Court may,
on application by or on behalf of that person, order
the sale of the shares so transmitted and direct that
the proceeds of sale after deducting the expenses of
the sale shall be paid to that person or otherwise as
the Court may direct.
(2) The Court may require any evidence in support

of the application as it thinks fit, and may make the
order for sale on any terms and conditions it thinks
just, or may refuse to make the order and generally
may act as it thinks fit.
(3) Every such application shall be made within

the period of twenty-eight days beginning with the
date of the occurrence of the event on which the
transmission had taken place or within such extended
period as the Court may allow, but such period shall
not exceed one year beginning with the date of the
occurrence of that event.
(4) The shares transmitted under subsection (1)

shall be liable to forfeiture if such an application
is not made within the time allowed by or under
subsection (3) or the Court refuses an order for sale
under subsection (2).
Court order 42. (1) Where the Court, whether in pursuance of

on the sale
of registered section 41 or otherwise, orders the sale of a ship or
ship. shares in the ship, the order of the Court shall contain
a declaration vesting in some named person the right
to transfer the property in the ship.
(2) The person so named shall be entitled to transfer

the property in the ship in the same manner and to
the same extent as if he were the registered owner
of the ship.
(3) The Registrar shall deal with any application

relating to the transfer of the property in the ship
made by the person so named as if that person were
the registered owner of the ship.
The Court 43. The Court may, if it thinks fit and without
may prohibit
dealing with prejudice to the exercise of any other power, on the
registered application of any interested person make an order
ship.
prohibiting for a specified time any dealing with a
registered ship.
Mortgage of 44. (1) A registered ship, other than a bareboat

registered
ship. chartered-in ship, may be made a security for the
repayment of a loan or the discharge of any other
obligation.
(2) The instrument creating any such security referred

to in this Part as a mortgage shall be in the form as
may be determined by the Director of Marine.
(3) Where a mortgage executed in accordance

with subsection (2) is produced to the Registrar, he
shall register the mortgage in the order in which
it is produced to the Registrar for the purpose of
registration.
Priority of 45. Where two or more mortgages are registered in

registered
mortgages. respect of the same ship, the priority of the mortgagees
between themselves shall be determined by the order
in which the mortgages were registered and not by
reference to any other matter.
Registered 46. (1) Subject to subsection (2), every registered

mortgagee’s
power of sale. mortgagee shall have power, if the mortgage money
or any part of it is due, to sell the ship and to give
effectual receipts for the purchase money.
(2) Where two or more mortgagees are registered

in respect of the same ship, a subsequent mortgagee
shall not, except under an order of the Court, sell the
ship without the concurrence of every prior mortgagee.
Assignment 47. (1) A registered mortgage of a ship or share may

of registered
mortgage or be assigned to any person and the deed affecting the
share. assignment shall be in the form as may be determined
(2) On production of the deed of assignment to the

Registrar, he shall record in the Register the name
of the assignee of the mortgage and certify the entry
on the deed of assignment.
(3) The assignee shall have the same right of

preference as the assignor.
Protection 48. Where a ship is subject to a registered mortgage—

of registered
mortgagors.
(a) except so far as may be necessary for making
the ship available as a security for the
mortgage debt, the mortgagee shall not by
reason of the mortgage be treated as owner
of the ship; and
(b) the mortgagor shall be treated as not having
ceased to be owner of the ship.
Transmission 49. Where the interest of a mortgagee in a registered

of mortgage
by operation mortgage is transmitted to any person by any lawful
of law. means other than by an assignment under section 47,
the Registrar shall on production of the evidence to
the satisfaction of the Registrar, cause the name of
that person to be entered in the Register as mortgagee
of that ship.
Discharge 50. Where a registered mortgage has been discharged,

of registered
mortgage. the Registrar shall, on production of the mortgage deed
and such evidence of the discharge of the mortgage,
cause an entry to be made in the Register to the effect
that the mortgage has been discharged.
Protection of 51. Where the registration of any ship has been

undischarged
mortgage. terminated under this Ordinance, the termination of
that registration shall not affect any entry made in
the Register so far as relating to any undischarged
mortgage of that ship or of any share in it.
Mortgage not 52. A registered mortgage of a ship or share in a

affected by
bankruptcy. ship shall not be affected by the mortgagor having
been adjudicated bankrupt after the date of registration
of the mortgage, notwithstanding the ship or share
is in the possession of the mortgagor at the date of
adjudication and the mortgagee shall have preference
over any right, claim or interest in the ship or share
of any creditor, trustee or assignee.
Non- 53. Sections 39 to 52 shall not apply to a bareboat

application.
chartered-in ship and any matters or questions
corresponding to those for which the provisions apply
shall be determined by reference to the law of the
country of primary registry.
Licensing of ships
Licensing. 54. (1) Except for a ship exempted under section 55,
any ship below fifteen net tonnage in any part of
Malaysian waters for any of the following purposes:
(a) trade or business;
(b) the transportation of any person other than
for trade or business; or
(c) sports, leisure or recreational activity,
shall obtain a licence under this Part.
(2) A person who contravenes subsection (1) commits

or to both.
(3) In this section, “trade or business” includes—

(a) the conveyance of goods or passengers;
(b) fishing;
(c) salvage operations;
(d) dredging;
(e) cable-laying;
(f) off-shore exploration;
(g) conservation;
(h) marine construction;
(i) oceanography;
(j) hydrography; and
(k) port services.
Exemption 55. The following ships are exempted from the

from
licensing. requirement for licence under section 54:
(a) any ship, including a fishing vessel, registered
under this Ordinance or any other written
laws in Malaysia;
(b) any ship, not being a fishing vessel, which is
duly registered in accordance with the laws
of any country outside Malaysia;
(c) a ship’s life boat;
(d) a fishing vessel licensed under the Fisheries
Act 1985 [Act 317];
(e) a foreign fishing vessel to which a permit has
been issued under the Fisheries Act 1985;
(f) in relation to the State of Sabah, any
vessel licensed under the Merchant
Shipping Ordinance 1960 of Sabah [Sabah
Ordinance 11/1960] and in relation to the
State of Sarawak, any vessel licensed under
the Merchant Shipping Ordinance 1960 of
Sarawak [Sarawak Ordinance 2/1960]; and
(g) any class or description of ship specified
by the Minister by order published in the
Gazette.
Licensing 56. The Director of Marine may appoint any public

officer.
officer as a licensing officer to perform the functions
in connection with licensing of ships under this Part.
Application 57. (1) An application for a licence under this Part

and
requirements shall be made to the licensing officer—
for a licence.
(a) in the form and manner as may be determined
by the Director of Marine; and
(b) accompanied by the information and document
as may be determined by the Director of
Marine.
(2) In addition to subsection (1), the applicant

shall ensure that steps are taken to comply with the
requirements for survey and measurement of ship,
ship’s name and marking of ship as stipulated in
sections 21, 22 and 23 or in the regulations made
under this Part.
Additional 58. Upon receipt of an application for a licence

information
and under section 57, the licensing officer may require
documents the applicant to furnish additional information or
and inspection
of ship.
documents relating to the ship and the licensing
officer may go on board the ship to inspect the ship
and any documents relating to the ship.
Issuance of 59. (1) If the licensing officer is satisfied that the

licence and
refusal to requirements for a licence have been fulfilled, the
issue licence. licensing officer shall, upon payment of the prescribed
fee, issue a licence to the applicant.
(2) The Director of Marine may determine the

terms and conditions to be attached to a licence issued
under subsection (1).
(3) A licence issued under this section shall be valid

for a period as may be determined by the Director
of Marine and may be renewed.
(4) The licensing officer shall refuse to issue a

licence if he is satisfied that the applicant has not
complied with any of the requirements for a licence.
(5) If the licensing officer refuses to issue a licence,

he shall serve a notice on the applicant within fourteen
working days from the date of application stating the
refusal and the grounds upon which such refusal is
made.
Record of 60. (1) Upon issuance of licence, the licensing

licences.
officer shall enter the particulars of the licence into
the record of licences.
(2) The licensing officer shall maintain in both

physical or electronic form the record of licences as
Custody of 61. The owner of a ship licensed under section 59

licence.
shall cause the licence to be kept at all times on
board the ship in custody of the person in charge of
the ship.
Ships 62. (1) A ship licensed under this Part shall not
licensed
under this proceed beyond the coastal waters of a State in which
Part shall
not proceed
the licence is issued.
beyond
coastal
waters of
(2) Notwithstanding subsection (1), such ship may
State. proceed beyond the coastal waters of a State up to
the outer limits of the Malaysian waters if—
(a) it is expressly allowed in the terms of the
licence;
(b) it is necessary due to stress of weather; or
(c) it is due to other causes beyond the control
of the master.
(3) For the purpose of this section, “coastal waters”

means part of the sea adjacent to the coast of a State
not exceeding three nautical miles measured from the
low-water line.
Offences 63. Any person who uses a ship or causes or permits

relating to
unlicensed a ship to be used for a purpose other than the purpose
ship. for which it is licensed or contrary to the conditions
of the licence commits an offence and shall, on
conviction, be liable to a fine not exceeding one
Malaysia Shipping Development Fund
Interpretation. 64. For the purposes of sections 65 to 68f—
“Committee” means the Malaysia Shipping

Development Fund Committee established under
section 66;
“Fund” means the Malaysia Shipping Development

Fund established under section 65.
Establishment 65. (1) A fund to be known as the “Malaysia

of the Fund.
Shipping Development Fund” is established and shall
be controlled and administered by the Committee.
(2) The Fund shall consist of the annual tonnage

fees collected under this Part.
(3) The Fund shall be expended for the following

purposes:
(a) to improve the shipping industry;
(b) to provide awards, fellowships, scholarships
and research grants relating to the shipping
industry;
(c) to sponsor research projects undertaken by
organizations, institutions of higher learning
or individuals for the purpose of the shipping
industry;
(d) to organize seminars, expositions and other
similar activities relating to the shipping
industry;
(e) to pay any other expenses properly incurred
by the Committee in the execution of its
functions under this Part.
(4) All costs, charges and expenses of administering

the Fund shall be chargeable to the Fund and may
be paid out of the Fund from time to time.
(5) The moneys of the Fund, in so far as they

are not immediately required to be expended by the
Committee under this Part, shall be invested in such
manner as the Minister may, with the concurrence of
the Minister of Finance, approve.
Establishment 66. (1) A Committee to be known as the “Malaysia

of the
Committee. Shipping Development Fund Committee” is established.
(2) The Committee shall consist of the following

members to be appointed by the Minister by notification
in the Gazette:
(a) the Director of Marine as the Chairman;
(b) a representative of the Ministry of Transport;
(c) a representative of the Ministry of Finance;
(d) a representative of the Marine Department;
(e) a representative of the Government of the
State of Sabah;
(f) a representative of the Government of the
State of Sarawak; and
(g) not less than three but not more than five
other persons who have wide experience
or special knowledge in matters relating to
shipping.
(3) The Minister may, in respect of each member

of the Committee appointed under paragraph (2)(g),
appoint an alternate member who may attend any
meeting of the Committee when the member in respect
of whom he is an alternate to is for any reason unable
to attend the meeting; and an alternate member when
attending the meeting shall be deemed to be a member
of the Committee.
(4) The Minister may appoint any member temporarily

to exercise the functions of the Chairman during the
temporary absence of the Chairman due to incapacity,
illness or any other cause and that member shall, during
the period in which he is exercising the functions of
the Chairman, be deemed to be the Chairman.
(5) A member of the Committee appointed under

subsection (2) shall, unless he sooner resigns or his
appointment is sooner revoked or he otherwise vacates
his office, hold office for a period of two years from
the date of his appointment and shall be eligible for
reappointment.
(6) An alternate member shall, unless he sooner

resigns or his appointment is sooner revoked, cease to
be an alternate member when the member in respect
of whom he is an alternate member to ceases to be
a member of the Committee.
Functions 67. The functions of the Committee shall be to

of the
Committee. control and administer the moneys of the Fund for
the improvement of the shipping industry and for
purposes ancillary thereto.
Disclosure 68. (1) A member of the Committee appointed under

of financial
interest. paragraph 66(2)(g) who acquires any financial interest
after his appointment in any undertaking relating to
the shipping industry shall within fourteen days after
so doing, or if he does not know of the financial
interest within fourteen days after it comes to his
knowledge, give notice in writing to the Minister
specifying the financial interest so acquired; and the
Minister may if he thinks fit revoke the appointment
of that member.
(2) Where a corporation has an interest in the shipping

industry, a member of the Committee shall be deemed
to have a financial interest in that corporation if—
(a) the corporation is, or its directors are
accustomed or under an obligation, whether
formal or informal, to act in accordance with
the directions, instructions or wishes of that
member in relation to any matter;
(b) that member has a controlling interest in the
corporation; or
(c) that member and his associates are entitled to
exercise or control the exercise of not less
than one-tenth of the votes attached to the
voting shares in the corporation.
Financial 68a. (1) Any financial interest of a spouse or a

interest of
spouse or child of a member of the Committee in the position
child of to benefit from the Fund shall be deemed to be a
member.
financial interest of the member of the Committee.
(2) A member of the Committee shall, within

fourteen days of his spouse or child acquiring any such
financial interest, notify the Committee in writing of
such acquisition and if he fails to do so he commits
fine not exceeding twenty-five thousand ringgit or
to imprisonment for a term not exceeding one year
or to both.
(3) A financial interest shall not be disregarded by

reason only of—
(a) its remoteness;
(b) the manner in which it arose; or
(c) the fact that the financial interest is, or is
capable of being made subject to restraint
and restriction.
Register of 68b. The Committee shall keep and maintain or cause

members’
financial to be kept and maintained a register of members’
interest. financial interest and within fourteen days of receiving
information regarding such interest, shall cause to be
entered in the register that information and the date
of entry corresponding to the member’s name.
Report of 68c. The Committee shall, not later than 30 June

activities to
the Minister. of each year, cause to be made and transmitted to
the Minister a report dealing with the activities of
the Committee during the preceding year, and may
contain such information as the Minister may from
time to time require.
Audit. 68d. (1) The accounts of the Fund shall be audited

annually by the Auditor-General and the provisions
of the Audit Act 1957 [Act 62] shall apply.
(2) The Committee shall, not later than 31 March

of the following year or such later date as the
Minister of Finance may determine, transmit to the
Auditor-General the financial statements of the accounts
referred to in subsection (1) which will consist of
the balance sheet, profit and loss statement and such
other supporting statements as may be required by
the Minister of Finance.
(3) The audited statements shall be submitted to

the Minister of Finance, who shall cause them to be
laid before each House of Parliament.
Regulations. 68e. The Minister may make such regulations as may

be necessary or expedient and for giving full effect
to the provisions relating to the Fund.
Issuance of 68f. The Minister may issue general directions to

directions.
the Committee which shall be consistent with this
Ordinance and the Committee shall comply with such
directions.
Authorized officer
Authorized 68g. (1) The Director of Marine may appoint any public
officer.
officer as authorized officer to conduct investigation or
inspection to verify the compliance or non-compliance
of any requirements under this Part, Part IIa or any
regulations made under this Part or Part IIa.
(2) For the purpose of any such inspection or

investigation, the authorized officer shall have the
powers conferred to an Inspector under this Ordinance.
(3) Notwithstanding subsection (2), an authorized

officer shall have the power to do all things necessary
or expedient to be done, in connection with, or
incidental to the performance of his functions.
Miscellaneous
Electronic 68h. (1) The Director of Marine may provide a service

filing of
documents. for the electronic filing of any document required
by this Ordinance or regulations made under it to be
submitted to the Registrar or licensing officer.
(2) A person who intends to use the service provided

under subsection (1) shall become a subscriber to the
service by paying the prescribed fee and complying
with such terms and conditions as may be determined
(3) The Director of Marine may determine the

documents that may be electronically filed.
(4) A document electronically filed under this section

shall be deemed to have satisfied the requirement for
the submission of such documents if the document
is communicated or transmitted to the Registrar or
licensing officer in such manner as may be determined
(5) A document that is required to be stamped,

signed or sealed shall, if it is to be electronically
filed, be certified or authenticated in such manner as
(6) A copy of or an extract from any document

electronically filed with the Registrar or licensing
officer under subsection (1) supplied or issued by
the Registrar or licensing officer and certified under
the hand of the Registrar or licensing officer to be a
true copy of or an extract from such document shall
be admissible in evidence in any proceedings as of
equal validity as the original document.
(7) Where a document is electronically filed with

the Registrar or licensing officer, the Registrar or
licensing officer shall not be liable for any loss or
damage suffered by any person by reason of any error
or omission of whatever nature or however arising
appearing in any document obtained by any person
under the service referred to in subsection (1), if
such error or omission was made in good faith and
in the ordinary course of the discharge of the duties
of the Registrar or licensing officer or occurred or
arose as a result of any defect or breakdown in the
service or in the equipment used for the provision of
the service.
National 68i. (1) Subject to subsection (3), every registered

colours and
other colours Malaysian ship shall fly the red ensign, without any
allowed. defacement or modification, which shall be the proper
national colours for a registered Malaysian ship.
(2) The Director of Marine shall determine the

colours for ships owned by the Government or in the
service of the Government.
(3) Notwithstanding subsection (1), any colour

allowed to be worn in accordance with a warrant from
the Yang di-Pertuan Agong shall also be the proper
national colours for a registered Malaysian ship.
Penalty for 68j. (1) If—

carrying
improper
colour. (a) any distinctive national colours, other than the
red ensign and any proper national colour
allowed to be worn under subsection 68i;
(b) any colour usually worn by the ships of the
Royal Malaysian Navy or resembling those
of the Royal Malaysian Navy; or
(c) the pennant usually carried by the ships of
the Royal Malaysian Navy or any pennant
resembling that pennant,
are hoisted on board any registered Malaysian ship

without warrant from the Yang di-Pertuan Agong,
the master or the owner of the ship, and every other
person hoisting it commits an offence and shall,
on conviction, be liable to a fine not exceeding
twenty-five thousand ringgit or to imprisonment for
a term not exceeding one year or to both.
(2) If any colour or pennant is hoisted on board a

ship in contravention of subsection (1)—
(a) any commissioned naval or military officer;
(b) any police officer with a rank of an Inspector
and above;
(c) any authorized officer; and
(d) any Malaysian consular officer,
may go on board the ship and seize the colour or

pennant.
(3) Any colour or pennant seized under subsection (2)

shall be forfeited by the Government.
Duty to 68k. (1) A registered Malaysian ship shall hoist the

show
Malaysian red ensign—
ensign.
(a) on a signal, instruction or order being made to
the ship by any ship of the Royal Malaysian
Navy, including any ship under the command
of a commissioned naval officer, or any ship
or aircraft owned by the Government;
(b) on entering or leaving any Malaysian or
foreign port; and
(c) while in a Malaysian port from sunrise to
sunset.
(2) Any master who contravenes subsection (1)

commits an offence and shall, on conviction, be liable
to a fine not exceeding twenty-five thousand ringgit
or to imprisonment for a term not exceeding one year
or to both.
Offences 68l. (1) If the master or owner of a ship which is not

relating to
assuming a Malaysian ship does anything, or permits anything
Malaysian to be done, for the purpose of causing the ship to
character of
ship.
assume the character of a Malaysian ship then, except
as provided under subsections (3) and (4), the ship
shall be liable to forfeiture and the master and owner
of the ship commit an offence.
(2) If the master or owner of a Malaysian ship

does anything, or permits anything to be done, for
the purpose of concealing the Malaysian nationality
of the ship, the ship shall be liable to forfeiture and
the master and owner of the ship commit an offence.
(3) No liability arises under subsection (1) or (2),

where the assumption of the character of a Malaysian
ship or the concealment of the Malaysian nationality
of a ship has been made for the purpose of escaping
capture by an enemy, or by a foreign ship of war in
the exercise of some belligerent right.
(4) Where the registration of any ship has been

terminated, any marks which are prescribed by the
regulations and displayed on the ship within the
period of fourteen days beginning with the date of
termination of that registration shall be disregarded
for the purposes of subsections (1) and (2).
(5) Any person who commits an offence under

this section shall, on conviction, be liable to a fine
not exceeding five hundred thousand ringgit or to
imprisonment for a term not exceeding five years or
to both.
Duty to 68m. (1) The master shall, prior to proceeding to the

declare
national sea from any port or place in Malaysia, declare to
character of a port officer the name of the country to which he
ship.
claims that the ship belongs.
(2) If a ship proceeds or attempts to proceed to

the sea without the declaration as required under
subsection (1), the master commits an offence and
one hundred thousand ringgit or to imprisonment for
a term not exceeding two years or to both and the
ship may be detained until the declaration is made.
Taking 68n. (1) Where a ship which is forfeited or detained

detained ship
on a voyage under section 68 l or 68m proceeds or attempts to
or excursion. proceed to the sea before it is released from detention
by the Director of Marine, the master and the owner of
the ship or bareboat charterer commits an offence and
two million ringgit or to imprisonment for a term not
exceeding three years or to both.
(2) Where a ship—

(a) proceeds or attempts to proceed to the sea in
contravention of subsection (1); and
(b) has on board a public officer acting in the
execution of his duty or any person acting
on behalf of the public officer,
the master and the owner of the ship or bareboat

charterer each commit an offence and shall, on
conviction, be liable to a fine not exceeding two
(3) The master and the owner of the ship or the

bareboat charterer shall jointly and severally be liable
to pay all expenses incidental to the taking of the
public officer or the person acting on behalf of the
public officer on the voyage and for securing his return
to the port he was taken from in Malaysia, and all
such expenses shall be a debt due to the government
and may be recovered in the same manner as a fine.
Offences 68o. (1) If at any time there occurs, in relation to a

relating to
Malaysian registered Malaysian ship, any change affecting the
ship
ownership.
status of ownership and the qualification to be owner
of a Malaysian ship, the owner of the ship shall,
within thirty days after the change occurs, notify the
Registrar of that change.
(2) Any person who intentionally alters, suppresses,

conceals or destroys a document which contains
information relating to the status of ownership and the
qualification to be an owner of a Malaysian ship and
which he has been required to produce to the Registrar
under this Ordinance, commits an offence and shall,
on conviction, be liable to a fine not exceeding one
(3) Any owner who fails to comply with subsection (1)

commits an offence and shall, on conviction, be
liable to a fine not exceeding one hundred thousand
False 68p. Any person who—

declaration
or
information. (a) makes any false or misleading statements or
furnishes any false or misleading information
to the Registrar, licensing officer or authorized
officer pursuant to a requirement to make
any statement or furnish any information,
whether in an application or otherwise,
as specified under this Part; or
(b) makes any false declaration or produces any
forged certificate,
commits an offence and shall, on conviction, be liable

to a fine not exceeding five hundred thousand ringgit
or to imprisonment for a term not exceeding three
years or to both.
Regulations. 68q. (1) The Minister may make regulations as may

be necessary or expedient for giving effect to or for
carrying out the provisions of this Part.
(2) Without prejudice to the generality of subsection (1),

the regulations may—
(a) prescribe the number of owners, including
joint owners, of a ship permitted for the
purposes of registration, and the persons
required or permitted to be registered in
respect of a ship or to be so registered in
specified circumstances;
(b) provide for any matters relating to registration,

re-registration and licensing of ships;
(c) provide for any matters relating to ship’s
name;
(d) provide for any matters relating to survey and
marking of ships;
(e) provide for any matters relating to suspension,
termination or closure of the registration of
ships, including matters such as the removal
of the markings on the ships;
(f) provide for any matters relating to ascertainment
of the tonnage of any ship;
(g) prescribe the trading limits or areas for ships
registered under the Malaysia Ship Register
or Malaysia International Ship Register;
(h) provide for any matters relating to representative
person;
(i) provide for any matters relating to the safety
standard of ships to be registered or licensed
under this Part;
(j) prescribe the fees required to be prescribed
under this Part and the manner of their
collection;
(k) provide for any matters relating to ships that
are bareboat chartered-out;
(l) prescribe the age and tonnage of ships to be
registered under this Part; and
(m) prescribe any other matters which is required
by this Part to be prescribed.
(3) Regulations made under this Part may prescribe

any act in contravention of the regulations to be an
offence and may prescribe penalties of a fine not
exceeding two hundred thousand ringgit or imprisonment
for a term not exceeding two years or to both for
such offence.
Part IIa
DOMESTIC SHIPPING
Interpretation. 68r. In this Part, unless the context otherwise requires—
“authorized officer” means any person appointed

by the Director of Marine as an authorized officer
under section 68g;
“Board” means the Domestic Shipping Licensing

Board established under section 68ad;
“domestic shipping” means the use of ship for—

(a) services in Malaysian waters or the exclusive
economic zone other than fishing; or
(b) the shipment of goods or carriage of passengers
from or to any port or place in Malaysia to
or from another port or place in Malaysia
or the exclusive economic zone;
“domestic shipping officer” means an officer

appointed under section 68af;
“licence” means a domestic shipping licence.
Prohibition 68s. (1) No ship other than a registered Malaysian

on non-
Malaysian ship may engage in domestic shipping.
ships
engaging
in domestic (2) The master or owner of a ship who contravenes
shipping. subsection (1) commits an offence and shall, on
conviction, be liable to a fine not exceeding two
hundred and fifty thousand ringgit or to imprisonment
for a term not exceeding three years or to both.
Licence for 68t. (1) No ship shall engage in domestic shipping

domestic
shipping. without a licence issued under this Part.
(2) The owner or master of a ship who contravenes

subsection (1) commits an offence and shall, on
conviction, be liable to a fine not exceeding one
Exemption. 68u. A Malaysian ship of less than fifteen net tonnage

is exempted from the provisions of this Part.
Permission 68v. The Minister may, subject to such conditions and

to engage
in domestic restrictions as he may determine, permit any class of
shipping. ships other than ships referred to under section 68u
to engage in domestic shipping.
Application 68w. (1) An application for a licence under this Part

and issuance
of licence. shall be made to the domestic shipping officer in the
form and manner as may be prescribed.
(2) The domestic shipping officer may refuse to

determine an application made otherwise than in
accordance with this Part.
(3) A licence issued shall be for such duration and

subject to such conditions as the domestic shipping
officer considers necessary.
Furnishing of 68x. The domestic shipping officer may, by notice,

information.
require the owner or master of any ship in respect of
which a licence is issued or is to be issued to furnish
within the period specified in the notice information on—
(a) the classes of passengers or goods which the
ship is capable of carrying or has carried
during any specified period;
(b) the type of services engaged in by the ship;
(c) the rates of freight or charter charges applicable
to the ship; and
(d) any other relevant matter.
Revocation 68y. (1) Subject to subsection (2), a domestic shipping

of licence.
officer may revoke any licence if he is satisfied that
the licensee, his servant or agent has—
(a) contravened any of the provisions of this
Ordinance; or
(b) committed a breach of any of the terms or
conditions of the licence.
(2) Notwithstanding subsection (1), the licensing

officer shall give the licensee reasonable opportunity to
make a representation against the intended revocation.
(3) If a licensing officer revokes a licence under

this section, the licensee shall surrender the licence to
the domestic shipping officer within fourteen days of
the notice of revocation, and if the licensee without
lawful excuse fails to do so, he commits an offence and
twenty-five thousand ringgit or to imprisonment for
a term not exceeding one year or to both.
Appeal. 68z. Any person aggrieved by the decision of the

domestic shipping officer to refuse to issue or revoke
a licence may, within fourteen days of the decision
being made known to him in writing, appeal to the
Board whose decision shall be final.
Power of 68aa. (1) For the purpose of ensuring that the provisions
authorized
officer to of this Part are complied with, the Director of Marine
board ship. or any authorized officer may go on board any ship
in Malaysian waters or the exclusive economic zone
and—
(a) require the master or owner of the ship to
give such information relating to the ship,
its cargo, stores, crew, passengers or voyage
as he may consider necessary; and
(b) demand to inspect all documents which ought
to be on board the ship and require all or
any of such documents to be brought to him
for inspection.
(2) A master or owner of any ship—

(a) who, without lawful excuse, refuses to allow
the Director of Marine or any authorized
officer to board the ship;
(b) when so required by the Director of Marine or
authorized officer refuses or fails to submit
the required documents;
(c) who, in submitting the required document,

knowingly makes any statement that is false
in a material particular; or
(d) who, with intent to deceive, furnishes a
document that is false in a material particular,
commits an offence and shall, on conviction, be

liable to a fine not exceeding one hundred thousand
Power to 68ab. (1) The Director of Marine or any authorized

detain ships.
officer may detain any ship if he has reasonable
cause to suspect that there has been a contravention
of section 68s or 68t.
(2) Any ship that has been detained under subsection (1)
may be released upon the deposit of a financial
security with the Director of Marine for an amount
to be determined by him.
Register of 68ac. A domestic shipping officer shall keep or cause

domestic
shipping to be kept a register of domestic shipping licences
licences. into which he shall enter particulars of licences that
have been approved.
Domestic Shipping Licensing Board
Establishment 68ad. (1) There is established a board to be called

and
composition the “Domestic Shipping Licensing Board”.
of the Board.
(2) The Board shall consist of the following members
to be appointed by the Minister:
(a) the Secretary-General of the Ministry of
Transport who shall be the Chairman;
(b) the Director of Marine or his representative;
(c) a representative of the Ministry of Transport;
(d) a representative of the Government of the
State of Sabah and a representative of the
Government of the State of Sarawak; and
(e) not less than five other persons, who have

wide experience or special knowledge in
matters relating to shipping.
(3) The Minister may, in respect of each member of

the Board appointed under paragraph (2)(e), appoint
an alternate member who may attend any meeting of
the Board when the member in respect of whom he
is an alternate to is for any reason unable to attend
the meeting; and an alternate member when attending
the meeting shall be deemed to be a member of the
Board.
(4) No person shall be appointed as a member or

alternate member of the Board unless prior to the
appointment he makes a statutory declaration as to
whether he has any and if so what financial interest
in any undertaking providing domestic shipping.
(5) The appointment of every member and alternate

member of the Board shall be published in the Gazette.
(6) The Minister may appoint any member temporarily

to exercise the functions of the Chairman during the
temporary absence of the Chairman due to incapacity,
illness or any other cause and that member shall, during
the period in which he is exercising the functions of
the Chairman, be deemed to be the Chairman.
(7) A member of the Board appointed under

subsection (2) shall, unless he sooner resigns or his
appointment is sooner revoked or he otherwise vacates
his office, hold office for a period of two years from
the date of his appointment and shall be eligible for
reappointment.
(8) An alternate member, unless he sooner resigns

or his appointment is sooner revoked, shall cease to
be an alternate member when the member in respect
of whom he is an alternate member to ceases to be
a member of the Board.
(9) There shall be paid to members of the Board,

or to such of them as the Minister may determine,
such allowances as he may determine.
(10) No member of the Board shall incur personal

liability for loss or damage caused by an act or omission
in administering the affairs of the Board, unless the
loss or damage is occasioned by an intentionally
wrongful act or omission on his part.
(11) All members of the Board shall be deemed to

be public servants within the meaning of the Penal
Code.
Functions of 68ae. The functions of the Board shall be:

the Board.
(a) to control matters relating to domestic shipping;
(b) to issue general directions to the Director of
Marine including that in relation to conditions
for the issuance of domestic shipping licence;
and
(c) to advise the Minister on matters relating to
domestic shipping.
Appointment 68af. (1) The Board may appoint such number of

of domestic
shipping domestic shipping officers for the purposes of dealing
officers. with applications for the domestic shipping licences and
all matters related to the domestic shipping licencing.
(2) Every domestic shipping officer shall comply

with all directions issued by the Board in pursuance
of paragraph 68ae(b).
Disclosure 68ag. (1) A member of the Board appointed under

of financial
interest. paragraph 68ad(2)(e) who acquires any financial interest
after his appointment in any undertaking providing
domestic shipping shall within four weeks after so
doing, or if he does not know of the financial interest
within four weeks after it comes to his knowledge,
give notice in writing to the Minister specifying the
financial interest so acquired; and the Minister may if
he thinks fit revoke the appointment of that member.
(2) Where a corporation has an interest in shipping,

a person shall be deemed to have a financial interest
in that corporation if—
(a) the corporation is, or its directors are
accustomed or under an obligation, whether
formal or informal, to act in accordance with
the directions, instructions or wishes of that
person in relation to any shipping matter;
(b) that person has a controlling interest in the
corporation; or
(c) that person or his associates, or that person
and his associates are entitled to exercise or
control the exercise of not less than one-tenth
of the votes attached to the voting shares in
the corporation.
Financial 68ah. (1) Any financial interest in any undertaking

interest of
a spouse or providing domestic shipping of the spouse, or a
child of a child under the age of majority of a member of the
member.
Board shall be deemed to be a financial interest of
the member.
(2) A member of the Board shall, within four weeks

of his spouse or child under the age of majority
acquiring any financial interest in an undertaking
providing domestic shipping, notify the Minister in
writing of such acquisition and if he fails to do so
he commits an offence and shall, on conviction, be
liable to a fine not exceeding twenty-five thousand
one year or to both.
(3) A financial interest in an undertaking providing

domestic shipping shall not be disregarded by reason
only of—
(a) its remoteness;
(b) the manner in which it arose; or
(c) the fact that the financial interest is, or is
capable of being made subject to restraint
and restriction.
Register of 68ai. The Board shall keep and maintain or cause

members’
financial to be kept and maintained a register of members’
interest. financial interest in any undertaking providing domestic
shipping; and within fourteen days of receiving
information regarding such interest shall cause to be
entered in the register that information and the date
of entry against the member’s name.
Annual
report.
68aj. The Board shall not later than 30 June of each
year cause to be made and transmitted to the Minister
a report dealing with the activities of the Board during
the preceding year, and may contain such information
as the Minister may from time to time require.
Regulations. 68ak. The Minister may make regulations as may

be necessary or expedient for giving effect to or for
carrying out the provisions of this Part, and without
prejudice to the generality of the foregoing provisions,
the regulations may—
(a) prescribe the procedure for the application
for a licence under this Part and matters
associated with such application, including
the particulars to be supplied at the time of
application;
(b) provide for the issuance and renewal of licences
and other associated matters, including the
form of the licence, the fees payable and
the manner of payment of the fees;
(c) prescribe the fares or rates which may be
charged for the provision of domestic shipping
by any ship engaged on any route or sector
involved in domestic shipping;
(d) prescribe that offences committed under the
regulations are punishable with imprisonment
for a term not exceeding six months or a fine
not exceeding twenty-five thousand ringgit
or to both;
(e) prescribe in respect of anything which is
required to be or which may be prescribed
under this Part;
(f) prescribe the manner and procedures for the

Board to conduct its business; and
(g) provide for any other matter which may be
expedient or necessary for the better carrying
out of the provisions of this Part.
Minister 68al. The Minister may issue to the Board general

may issue
directions. directions which shall be consistent with this Ordinance
and the Board shall comply with such directions.”.
Deletion of sections 473, 473b, 474, 475, 476, 477, 478, 479,
480, 481, 482, 483, 483a, 483b, 483c, 484 and 485
8. The Ordinance is amended by deleting sections 473, 473b,

474, 475, 476, 477, 478, 479, 480, 481, 482, 483, 483a, 483b,
483c, 484 and 485.
Deletion of Eleventh, Twelfth, Thirteenth and Fifteenth Schedules
9. The Ordinance is amended by deleting the Eleventh, Twelfth,

Thirteenth and Fifteenth Schedules.
Savings provision
10. (1) All persons holding office under the Ordinance and all
members of the Domestic Shipping Licensing Board appointed
under Part IIb of the Ordinance before the date of coming into
operation of this Act shall be deemed to have been duly appointed
until such persons cease to hold office or are appointed anew.
(2) All Malaysian ships registered under the provisions of the

Ordinance before the date of coming into operation of this Act
shall continue to be registered under the Ordinance as if the
Ordinance had not been amended by this Act.
(3) An owner of a Malaysian ship which has been registered

under the Ordinance before the date of coming into operation
of this Act may apply to the Registrar to convert the number of
shares in the ship from sixty-four to any number of shares as
the owner determines.
(4) All applications for registration, transmission or transfer of

ship and applications for registration of mortgage or assignment
of mortgage made under the Ordinance which are pending before
the date of the coming into operation of this Act shall, on the
date of the coming into operation of this Act, be dealt with by
the Registrar under the provisions of the Ordinance as amended
by this Act.
(5) All documents, endorsements, exemptions or certifications

in relation to the registration of Malaysian ship prepared, made or
granted before the date of coming into operation of this Act shall,
in so far as it is consistent with the provisions of the Ordinance as
amended by this Act and except as otherwise expressly provided
in this Act, continue to be valid and be deemed to have been
prepared, made or granted under the provisions of the Ordinance
as amended by this Act.
(6) All domestic shipping licences issued under Part IIb of

the Ordinance and boat licences issued under Part XIII of the
Ordinance before the date of coming into operation of this Act
shall continue to be valid until the expiry of the licence as if the
Ordinance had not been amended by this Act.
(7) All applications for a domestic shipping licence under

Part IIb of the Ordinance and boat licences under Part XIII of
the Ordinance which are pending before the date of coming into
operation of this Act shall, on the date of the coming into operation
of this Act, be dealt with by the domestic shipping officer or
the licensing officer under the provisions of the Ordinance as
amended by this Act.
(8) All rules, regulations, orders, directions, notifications,

exemptions and other subsidiary legislation, howsoever called,
made, given or done under the Ordinance before the date of
coming into operation of this Act shall be deemed to have been
made, given or done under the provisions of the Ordinance as
amended by this Act, and shall, in so far as they are consistent
with the Ordinance as amended by this Act, continue to remain
in full force and effect until they are revoked.
(9) Any notice, order, action, direction, decision or document

issued or made under the Ordinance before the date of coming
into operation of this Act, shall, in so far as it is consistent with
the Ordinance as amended by this Act, continue to be valid and
be deemed to have been issued or made under the provisions of
the Ordinance as amended by this Act.

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Merchant Shipping (Amendment) 1

MERCHANT SHIPPING (AMENDMENT) ACT 2017

Date of Royal Assent ... ... 10 November 2017

Date of publication in the

MERCHANT SHIPPING (AMENDMENT) ACT 2017

An Act to amend the Merchant Shipping Ordinance 1952 and to

ENACTED by the Parliament of Malaysia as follows:

Short title and commencement

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

(2) Subject to subsection (3), this Act comes into operation

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

3. Section 2 of the Ordinance is amended—

(b) by inserting after the definition of “port officer” the

(c) by substituting for the definition of “registrar” the following

(d) by deleting the definition of “Registrar General”; and

4. The Ordinance is amended by deleting section 3.

5. Section 10 of the Ordinance is amended—

New section 10a

6. The Ordinance is amended by inserting after section 10 the

“Licensing 10a. (1) Except in relation to ports where a port

(2) The Director of Marine may issue a licence

(3) Before exercising his power under subsection (2),

(4) No service plan shall be put into effect until

(5) A licence issued under this section shall set out

(6) The Minister may make regulations as may be

(7) Without prejudice to the generality of subsection (6),

(8) If the licensee contravenes any condition of

Substitution of Parts IIa, IIb and IIc

7. The Ordinance is amended by substituting for Parts IIa, IIb

Interpretation. 11. (1) In this Part, unless the context otherwise

“authorized officer” means any person appointed

“bareboat charter” means the hiring of a ship to

“bareboat chartered-in ship” means a ship on a

“bareboat charter terms” means the hiring of a ship

“certificate of registry” means a certificate of registry,

“licensing officer” means a public officer appointed

“Register” means the Malaysia Ship Register or

“representative person” means a person appointed

(2) In this Part, unless the contrary intention

(3) Where in relation to a ship or to any matter

(b) in the case of a ship registered under the

provided that nothing in this subsection shall prejudice

Registrar 12. (1) The Director of Marine may appoint a public

(2) The Deputy Registrar of Ships shall, subject

Functions 13. (1) The functions of the Registrar are—

(2) Notwithstanding subsection (1), the Registrar

Register. 14. (1) The Registrar shall maintain a Malaysia Ship

(2) The Register shall contain—

(3) The Registrar shall maintain the Register in both

Rectification 15. The Registrar may rectify the Register if a

Instructions. 16. The Director of Marine may issue instructions in

Ship 17. The Director of Marine may establish a ship

(2) The owner or master of a ship who contravenes

Qualification 19. A person is qualified to own a Malaysian ship—

Application 20. (1) An application for registration as a Malaysian

(b) shall be accompanied by any documents that

(2) The applicant shall ensure that steps are taken to

(3) Where an application to register a ship as a

and the non-Malaysian citizen or body corporate shall