LAWS OF MALAYSIA Act A1316

Merchant Shipping (Amendment and Extension) 1LAWS OF MALAYSIAAct A1316MERCHANT SHIPPING (AMENDMENT ANDEXTENSION) ACT 2007

2 Laws of MalaysiaACT A1316Date of Royal Assent ... ... 29 August 2007Date of publication in theGazette ... ... ... 30 August 2007Publisher’s Copyright CPERCETAKAN NASIONAL MALAYSIA BERHADAll rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or byany means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of Percetakan NasionalMalaysia Berhad (Appointed Printer to the Government of Malaysia).

Merchant Shipping (Amendment and Extension) 3LAWS OF MALAYSIAAct A1316MERCHANT SHIPPING (AMENDMENT ANDEXTENSION) ACT 2007An Act to amend the Merchant Shipping Ordinance 1952 and toextend specified provisions to the Federal Territory of Labuanand the States of Sabah and Sarawak, and to provide for mattersconnected therewith.[ ]ENACTED by the Parliament of Malaysia as follows:Short title and commencement1. (1) This Act may be cited as the Merchant Shipping (Amendmentand Extension) Act 2007.(2) Subject to subsection (3), this Act comes into operationon a date to be appointed by the Minister by notification in theGazette, and the Minister may appoint different dates for thecoming into operation of different provisions of this Act.(3) This Act comes into operation in the States of Sabah andSarawak on such date as the Minister may, after consultation withthe State Authorities, appoint by notification in the Gazette.

4 Laws of MalaysiaACT A1316Amendment of section 22. The Merchant Shipping Ordinance 1952 [Ord. 70/1952],which in this Act is referred to as the “Ordinance”, is amendedin section 2 by inserting after the definition of “load line rules”the following definition:‘ “Malaysia Shipping Notice” means a notice described assuch and issued by the Director of Marine in pursuance ofsection 519A in such manner as determined by him;’.Amendment of heading of Part V3. The Ordinance is amended in the heading of Part V bysubstituting for the word “SAFETY” the words “MARITIMETRANSPORT 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 249AB4. The Ordinance is amended in Part V by inserting under theheading of that Part but before the subheading “Prevention ofCollisions.” the following subheading and sections:Interpretation.“Maritime Transport Security.249A. In this subheading, unless the context otherwiserequires—“certificate” means the International Ship SecurityCertificate, Statement of Compliance of a maritimetransport security area or Statement of Compliance ofa designated marine facility issued in accordance withsection 249K;“company” means the owner of a ship or, any otherorganisation or person such as the ashore manager orbareboat charterer who has assumed responsibility forthe operation of the ship from the owner of the ship

Merchant Shipping (Amendment and Extension) 5and who on assuming such responsibility has agreed totake over all duties and responsibilities relating to thesafe operation of the ship;“declaration of security” means an agreement betweena ship and either a marine facility or another ship withwhich it interfaces, that specifies the security measureseach must implement;“interim certificate” means the Interim InternationalShip Security Certificate issued in accordance withsubsection 249K(4);“marine facility” includes—(a) an area of land, water or other supporting surfaceused, designed, prepared, equipped or set apartfor use, either in whole or in part, for thearrival, departure, movement or servicing ofvessels;(b) a building or installation and equipment in thearea associated with it or used or set apart forhandling or storing goods that have been or aredestined to be transported on a vessel;(c) equipment and facilities used to provide servicesrelating to marine transportation;(d) a fixed and floating structure, including an offshoreindustry structure;(e) an off-shore industry mobile unit;“marine facility security assessment” means a processof risks identification in respect of a designated marinefacility which contains the following elements:(a) identification and evaluation of assets andinfrastructure that is important to protect;(b) identification of possible threats to the assetsand infrastructure and the likelihood of theiroccurrence in order to establish and prioritisesecurity measures;

6 Laws of MalaysiaACT A1316(c) identification, selection and prioritization ofcountermeasures and procedural changes and theirlevel of effectiveness in reducing vulnerability;and(d) identification of weaknesses, including humanfactors, in the infrastructure, policies andprocedures;“marine facility security plan” means a plan developedto ensure the application of measures designed toprotect a designated marine facility and ships, persons,cargo, cargo transport units and ship’s stores within thedesignated marine facility from the risks of a securityincident;“maritime transport security area security assessment”means a process of risks identification in respect ofa maritime transport security area which contains thefollowing elements:(a) identification and evaluation of assets andinfrastructure that is important to protect;(b) identification of possible threats to the assetsand infrastructure and the likelihood of theiroccurrence in order to establish and prioritisesecurity measures;(c) identification, selection and prioritization ofcountermeasures and procedural changes and theirlevel of effectiveness in reducing vulnerability;and(d) identification of weaknesses, including humanfactors, in the infrastructure, policies andprocedures,and does not include matters as contained in the shipsecurity assessment and marine facility security assessmentin respect of a ship and marine facility within thatmaritime transport security area;“maritime transport security area security plan” meansa plan developed to ensure the application of measuresdesigned to protect a maritime transport security area

Merchant Shipping (Amendment and Extension) 7from the risks of a security incident, and does not includematters as contained in the ship security plan and marinefacility security plan in respect of a ship and marinefacility within that maritime transport security area;“security incident” means any suspicious act orcircumstance threatening the security of a ship, includinga high-speed craft, or a marine facility, or any shipmarinefacility interface or ship-to-ship activity;“security level” means the quantification of the degreeof risk that a security incident will be attempted or willoccur;“security level 1” means the level for which minimumappropriate protective security measures shall be maintainedat all times;“security level 2” means the level for which appropriateadditional protective security measures shall be maintainedfor a period of time as a result of heightened risk of asecurity incident;“security level 3” means the level for which furtherspecific protective security measures shall be maintainedfor a limited period of time when a security incident isprobable or imminent, although it may not be possibleto identify the specific target;“ship security assessment” means a process of risksidentification in respect of a ship which contains thefollowing elements:(a) identification of existing security measures,procedures and operations;(b) identification and evaluation of key shipboardoperations that is important to protect;(c) identification of possible threats to key shipboardoperations and the likelihood of their occurrencein order to establish and prioritise securitymeasures; and

8 Laws of MalaysiaACT A1316(d) identification of weaknesses, including humanfactors, in the infrastructure, policies andprocedures;“ship security plan” means a plan developed toensure the application of measures on board a shipdesigned to protect persons on board, cargo, cargotransport units, ship’s stores or the ship from the risksof a security incident;“ship-to-ship activity” means any activity not relatedto a marine facility that involves the transfer of goodsor persons from one ship to another ship.Application.Exemption.DesignatedAuthority.249B. This subheading applies to—(a) maritime transport security areas and ships inMalaysia and Malaysian waters;(b) marine facilities in Malaysia, Malaysian waters,the exclusive economic zone and continentalshelf, and ships entering such marine facilities;and(c) Malaysian ships and off-shore industry mobileunits registered under the Ordinance, whereverthey are.249C. The Minister may exempt any ship or class ofships or designated marine facilities from any of theprovisions of this subheading or any rules made hereunder,upon such terms and conditions as he deems fit.249D. (1) The Director of Marine shall be the DesignatedAuthority for the purposes of implementing the provisionsof this subheading.(2) The Designated Authority shall be responsiblefor—(a) approving the ship security assessment and shipsecurity plan and subsequent amendments to apreviously approved assessment and plan;(b) approving the maritime transport security areasecurity assessment and marine facility security

Merchant Shipping (Amendment and Extension) 9assessment, and the maritime transport securityarea security plan and marine facility securityplan and any subsequent amendments to anypreviously approved assessments and plans;(c) verifying the compliance of maritime transportsecurity areas, ships and designated marinefacilities with the approved security assessmentsand security plans;(d) exercising control and compliance with securitymeasures to be adopted at the different securitylevels declared; and(e) testing approved security plans.(3) The Designated Authority shall notify the companyor master of the ship, or operator of a designatedmarine facility the security level declared for the shipor designated marine facility, respectively.Maritimetransportsecurityarea.Designatedmarinefacility.249E. The Designated Authority may by notificationpublished in the Gazette—(a) declare any area or part of an area in Malaysiaand Malaysian waters as a maritime transportsecurity area; or(b) declare that a maritime transport security areaceases to be a maritime transport securityarea.249F. The Designated Authority may by notificationpublished in the Gazette—(a) designate any marine facility as a designatedmarine facility, including the delineation ofits boundary, its hours of operation and itsname;(b) vary any particulars of a designated marinefacility; or(c) declare that a designated marine facility ceasesto be a designated marine facility.

10 Laws of MalaysiaACT A1316AppointmentofMaritimeTransportSecurityOfficer.249G. (1) The Designated Authority may appoint aMaritime Transport Security Officer in respect of amaritime transport security area.(2) The Maritime Transport Security Officer shall beresponsible for the development, implementation, revisionand maintenance of the maritime transport security areasecurity assessment and maritime transport security areasecurity plan.(3) The Maritime Transport Security Officer mayestablish a committee to monitor and coordinate securitymatters within the maritime transport security area.Appointmentof MarineFacilitySecurityOfficer.249H. (1) Every designated marine facility shall have aMarine Facility Security Officer who shall be accountableto—(a) the Designated Authority in respect of a designatedmarine facility situated outside the maritimetransport security area;(b) the Maritime Transport Security Officer in respectof a designated marine facility situated withinthe maritime transport security area.AppointmentofCompanySecurityOfficer.Appointmentof ShipSecurityOfficer.(2) The operator of a designated marine facility shallappoint a Marine Facility Security Officer.(3) The Marine Facility Security Officer shall beresponsible for the development, implementation,revision and maintenance of the marine facility securityassessment and marine facility security plan, and forliaison with the Ship Security Officers and CompanySecurity Officers.249I. Every company shall appoint one or moreCompany Security Officers to be responsible for thedevelopment and supervision of the implementation ofthe ship security assessment and ship security plan inrespect of its ships.249J. (1) Every ship shall have a Ship Security Officerwho shall be responsible for the security of the ship,including the implementation and maintenance of the ship

Merchant Shipping (Amendment and Extension) 11security plan, and for liaison with the Company SecurityOfficers and Marine Facility Security Officers.(2) Subject to subsection (3), the Ship Security Officershall be accountable to the master of the ship.(3) Where the Ship Security Officer is also the masterof the ship, he shall be accountable to the CompanySecurity Officer.Issuance ofcertificateor interimcertificate.249K. (1) The Designated Authority may, upon receiptof a written application from a company and upon beingsatisfied that a ship of the company has complied withall the requirements of this subheading and the rulesmade hereunder, issue an International Ship SecurityCertificate in the prescribed form in respect of suchship upon payment of the prescribed fee.(2) The Designated Authority may, upon receipt of awritten application from a Maritime Transport SecurityOfficer or operator of a designated marine facility andupon being satisfied that the maritime transport securityarea or designated marine facility has complied with allthe requirements of this subheading and the rules madehereunder, issue—(a) a Statement of Compliance of a maritime transportsecurity area; or(b) a Statement of Compliance of a designatedmarine facility,in the prescribed form in respect of such maritimetransport security area or designated marine facility,upon payment of the prescribed fee.(3) The Designated Authority may issue the certificatein pursuance of subsection (1) or (2) subject to anyconditions or restrictions that he may deem fit toimpose.(4) The Designated Authority may, pending theissuance of the International Ship Security Certificate,issue an Interim International Ship Security Certificatesubject to such conditions or restrictions that he maydeem fit to impose.

12 Laws of MalaysiaACT A1316Revocationofcertificateor interimcertificate.249L. (1) The Designated Authority may at any timerevoke the certificate or interim certificate issued undersection 249K if he is satisfied that—(a) there has been a contravention of any provisionof this subheading or any rules made hereunder;or(b) there has been a breach of any conditionor restriction of the certificate or interimcertificate,provided that no certificate or interim certificate shallbe revoked unless the holder of the certificate or interimcertificate has been given a reasonable opportunityof making a representation against the intendedrevocation.(2) Notwithstanding subsection (1), the InternationalShip Security Certificate shall be deemed to have beenrevoked—(a) when a company assumes responsibility for theoperation of a ship not previously operated bythat company; or(b) upon transfer of the ship to the flag of anotherState.Surrenderofcertificateor interimcertificate.249M. (1) Upon the revocation or expiry of the InternationalShip Security Certificate or Interim International ShipSecurity Certificate, the company or master of the shipshall surrender such certificate or interim certificate—(a) to the Designated Authority within fourteen daysof the ship’s arrival at a Malaysian port; or(b) to the nearest Malaysian diplomatic or consularofficer who shall immediately forward thecertificate to the Designated Authority, wherethe ship is at a port outside Malaysia.(2) Upon the revocation or expiry of the Statementof Compliance of a maritime transport security area orStatement of Compliance of a designated marine facility,the Maritime Transport Security Officer or operator of

Merchant Shipping (Amendment and Extension) 13the designated marine facility, as the case may be, shallsurrender the certificate to the Designated Authoritywithin fourteen days from the date of its revocation orexpiry.(3) Any company, master of a ship, MaritimeTransport Security Officer or operator of a designatedmarine facility who fails to surrender the certificate orinterim certificate upon the revocation or expiry of suchcertificate or interim certificate in the manner as specifiedin subsection (1) or (2) shall be liable for each offenceto a fine not exceeding twenty-five thousand ringgit.Replacementofcertificateor interimcertificate.249N. (1) Where the certificate or interim certificateissued under section 249K is lost, defaced or destroyed, theDesignated Authority may, upon receipt of an applicationfrom the company, Maritime Transport Security Officeror operator of the designated marine facility and uponpayment of the prescribed fee, issue a certificate orinterim certificate in lieu of the original certificate orinterim certificate, provided that the company, MaritimeTransport Security Officer or operator of the designatedmarine facility proves to the satisfaction of the DesignatedAuthority that he or it has not caused or contributedto the loss, defacement or destruction of the originalcertificate or interim certificate.Pre-arrivalnotification.(2) Where the original certificate or interim certificateis found after the certificate or interim certificate hasbeen issued in pursuance of subsection (1), the originalcertificate or interim certificate shall be deemed to havebeen revoked and of no effect.249O. (1) Every master of a ship shall report to theMaritime Transport Security Officer before enteringany designated marine facility within a maritimetransport security area in accordance with the prescribedprocedures.(2) Every master of a ship shall report to the DesignatedAuthority before entering any designated marine facilityoutside a maritime transport security area in accordancewith the prescribed procedures.

14 Laws of MalaysiaACT A1316Requirementfordeclarationof security.Request fordeclarationof security.249P. The Designated Authority may require a declarationof security to be completed if he is satisfied that a shipmarinefacility interface or ship-to-ship activity poses arisk to persons, property or the environment.249Q. (1) The master of a ship or the Ship SecurityOfficer may lodge a request with the Designated Authority,Marine Facility Security Officer or with the master or theShip Security Officer of another ship for a declaration ofsecurity or modification of such declaration of securityif—(a) the ship is operating at a higher security levelthan the designated marine facility or the othership with which it is interfacing or intends tointerface;(b) the ship is registered in a State that is a party tothe Safety Convention, and there is an agreementon a declaration of security between that Stateand Malaysia covering certain internationalvoyages or specific ships on those voyages;(c) a security incident involving the ship or themarine facility it is using or intends to use,has occurred; or(d) the ship is at a marine facility that is not requiredto have and implement an approved marinefacility security plan.(2) The master of a ship or the Ship Security Officermay lodge a request with the master of another ship for adeclaration of security or modification of such declarationof security if the ship is conducting ship-to-ship activitieswith that other ship which is not required to have andimplement an approved ship security plan.(3) A Marine Facility Security Officer may, beforeor during ship-marine facility interface, lodge a requestwith the master of the ship or Ship Security Officerfor a declaration of security or modification of suchdeclaration of security, if—(a) the marine facility security plan identifies theship-marine facility interface as being susceptibleto a security incident; or

Merchant Shipping (Amendment and Extension) 15(b) the designated marine facility is operating at ahigher security level than the ship with whichit is interfacing or intends to interface with.Reportingof securityincident.249R. (1) The company, master of a ship, MaritimeTransport Security Officer or operator of a designatedmarine facility shall report immediately to the DesignatedAuthority upon the occurrence of the following securityincidents:(a) an explosion that is not the result of anaccident;(b) a bomb threat, armed attack, hostage taking,stowaway or hijacking; or(c) any breach of security.(2) Any company, master of a ship, MaritimeTransport Security Officer or operator of a designatedmarine facility who fails to report the security incidentshall be liable for each offence to a fine not exceedingfifty thousand ringgit or to imprisonment for a term notexceeding five years or to both.Direction toships.249S. (1) Where the Designated Authority has reasonablegrounds to suspect that a ship is a threat to the securityof any person or thing, including any goods, maritimetransport security area, ship or marine facility, theDesignated Authority may direct the ship to—(a) proceed to a place specified by the DesignatedAuthority in accordance with any instructionsgiven by him and to remain at the place untilhe is satisfied that the security threat no longerexists;(b) proceed out of Malaysian waters in accordancewith any instructions the Designated Authoritymay give regarding the route and manner ofproceeding; or(c) remain outside Malaysian waters.(2) The Designated Authority may in writing authoriseany Maritime Transport Security Officer or port officerto exercise the power to issue directions to any ship inpursuance of subsection (1).

16 Laws of MalaysiaACT A1316(3) The direction given to the company or master ofa ship is evidence that reasonable steps were taken tonotify the ship that it is a threat to the security of anyperson or thing, including any goods, maritime transportsecurity area, ship or marine facility.(4) The company or master of a ship who fails tocomply with the direction shall be liable to a fine notexceeding fifty thousand ringgit or to imprisonment fora term not exceeding five years or to both.Prohibitionof shipsenteringMalaysianwaterswhenthere is asecurityincident.Master’sdiscretionfor shipsecurity.Detentionof ship.249T. (1) Where there is a security incident, theDesignated Authority may prohibit any ship or class ofships from entering any area of Malaysian waters, orany marine facilities in the exclusive economic zone orcontinental shelf.(2) Any company or master of a ship who contravenesthis section shall be liable to a fine not exceeding fiftythousand ringgit or to imprisonment for a term notexceeding five years or to both.249U. If the master during the operation of the ship,in his professional judgement takes or executes anydecision which is in conflict with the safety and securityrequirements applicable to the ship that is necessary tomaintain the safety of the ship, the taking or executionof that decision shall not by itself constitute a breach ofany duty owed to any person by him under any contract,including a contract of employment.249V. Where the Designated Authority has reasonablecause to suspect that a ship fails to comply with anyprovision of this subheading or any rules made hereunder,the Designated Authority may direct that the ship bedetained for the purposes of conducting an investigationand examination of the ship, including that in respectof all persons on board the ship.Equivalentsecurityarrangements.249w. The Designated Authority may allow any Malaysianship, maritime transport security area or designatedmarine facility to implement other security measuresthat are equivalent to and at least as effective as thesecurity measures prescribed under this subheading.

Merchant Shipping (Amendment and Extension) 17Securityorganisation.249x. (1) The Designated Authority may in writing,subject to any conditions as he deems fit, appoint anyorganisation which has appropriate expertise in securitymatters and appropriate knowledge of ships and marinefacility operations as a security organisation.(2) Notwithstanding subsections 249D(2), 249K(1)and 249L(1), the Designated Authority may authorisein writing the security organisation to undertake certainsecurity-related activities in respect of a ship only,including—(a) the approval of the ship security assessment andship security plan and subsequent amendments toa previously approved assessment and plan;(b) the verification of compliance of ships with theapproved ship security assessments and shipsecurity plans; and(c) the issuance, replacement and revocation ofthe International Ship Security Certificate inaccordance with this subheading.(3) The Designated Authority may revoke the appointmentof a security organisation under subsection (1) if he issatisfied that the security organisation fails to meet theconditions as imposed by him.Alternativesecurityarrangements.249Y. (1) This subheading shall not apply to—(a) any ship engaged on short international voyageson fixed routes between designated marinefacilities and marine facilities outside Malaysia;and(b) the designated marine facilities as mentioned inparagraph (a),if it is covered by an agreement between the Governmentof Malaysia and another government on alternativesecurity arrangements.(2) No ship covered by the agreement referred to insubsection (1) shall conduct any ship-to-ship activitywith any ship not covered by such agreement.

18 Laws of MalaysiaACT A1316Power toinspect.Power toinvestigate.249Z. The Designated Authority, port officer or anyperson authorised in writing by the Designated Authority,may inspect any ship, maritime transport security areaand designated marine facility to which this subheadingapplies for the purpose of ensuring that the provisionsof this subheading and the rules made hereunder havebeen complied with.249AA. (1) Investigations in respect of offences underthis subheading may, without prejudice to the provisionsof any other written law relating to investigations, beconducted by the Designated Authority or any personauthorised in writing by him.(2) The Designated Authority or any person authorisedin writing by him making investigations under thissubheading shall have the power to—(a) go on board any ship or enter into any maritimetransport security area or marine facility as heconsiders necessary;(b) require the company, master of any ship,Maritime Transport Security Officer or operatorof a designated marine facility to facilitate theboarding of the ship or entry into the maritimetransport security area or marine facility, as thecase may be;(c) require information, whether orally or in writing,from any person supposed to be acquaintedwith the facts and circumstances of the caseunder investigation; or(d) require the production of any certificate, interimcertificate, official log-book or other documentsrelating to the operation of the ship, maritimetransport security area or designated marinefacility from the company, master of the ship,Maritime Transport Security Officer or operatorof the designated marine facility, as the casemay be.

Merchant Shipping (Amendment and Extension) 19(3) Any person who—(a) without reasonable excuse refuses or fails tocomply with a requirement made of him by theDesignated Authority or any person authorisedin writing by the Designated Authority in theexercise of his powers under subsection (2);or(b) in respect of a matter that he is required to respondto under subsection (2), makes a statement that isfalse or misleading in a material particular,shall be liable for each offence to a fine not exceedingfifty thousand ringgit or to imprisonment for a term notexceeding five years or to both.Maritimetransportsecurityrules.249AB. The Minister may make such rules as maybe necessary or expedient with respect to any mattersrelating to maritime transport security, and such rulesmay—(a) regulate the issuance and revocation of certificatesand interim certificates, including proceduresfor the application of certificates and interimcertificates, and the duration and replacementof such certificates;(b) provide for security measures in respect ofaccess control, security monitoring, passengers,personnel, baggage, delivery of ship’s storesand cargo security, including the development,implementation and review of securityassessments and security plans for maritimetransport security areas, ships and designatedmarine facilities and the procedure to be adoptedand complied with when the security level hasbeen declared;(c) prescribe the fees payable in connection with theprovision of any service or any other matterunder this subheading, including the mannerof collecting and disbursing such fees andfor matters relating to the failure to pay suchfees;

20 Laws of MalaysiaACT A1316(d) prescribe the forms that are required for thepurposes of this subheading;(e) prescribe the standards of security to bemaintained on board ships and in the maritimetransport security areas and designated marinefacilities;(f) provide for the procedure in respect of pre-arrivalnotification of any ship;(g) regulate matters concerning the declaration ofsecurity, including the form of request for adeclaration of security;(h) provide for the duties, responsibilities andtraining requirements of a Maritime TransportSecurity Officer, Marine Facility SecurityOfficer, Company Security Officer and ShipSecurity Officer;(i) provide for penalties for the contravention ofthe provisions of the rules made hereunder of afine not exceeding twenty-five thousand ringgitor imprisonment for a term not exceeding twoyears or to both.”.New sections 249AC, 249AD, 249AE, 249AF, 249AG, 249AH, 249AI,249AJ, 249AK, 249AL, 249AM, 249AN and 249AO5. The Ordinance is amended in Part V by inserting after thenew section 249AB but before the subheading “Prevention ofCollisions.” the following subheading and sections:Interpretation.“Safe Operation of Ships.249AC. In this subheading, unless the context otherwiserequires—“certificate” means the Document of Compliance orthe Safety Management Certificate issued in accordancewith section 249AJ;“company” has the same meaning as assigned to itin section 249A;

Merchant Shipping (Amendment and Extension) 21“interim certificate” means the Interim Document ofCompliance or the Interim Safety Management Certificateissued in accordance with subsection 249AJ(4);“Safety Management System” means a structured anddocumented system enabling the company to implementeffectively the company’s safety and environmentalprotectionpolicy within the company and on its ships.Application.249AD. This subheading shall apply to—(a) passenger ships;(b) cargo ships of 500 gross tonnage and more;and(c) off-shore industry mobile units of 500 grosstonnage and more,registered under the Ordinance.Exemption.249AE. (1) The Minister may, by notification publishedin the Gazette exempt any ship or class of ships fromany of the provisions of this subheading or any rulesmade hereunder, upon such terms and conditions as hemay deem fit.Generalsupervisionby theSurveyor-Generalof Shipson mattersrelating tothe safeoperation ofships, etc.Appointmentofdesignatedperson.(2) Subject to subsection (1), the Surveyor-General ofShips may exempt any ship from any of the provisionsof this subheading for a particular voyage, upon suchterms and conditions as he may deem fit.249AF. For the purposes of this subheading, the Surveyor-General of Ships shall exercise general direction andsupervision over all matters relating to the safe operationof ships and protection of the environment, and shallensure compliance with the provisions of this subheadingand the rules made hereunder.249AG. (1) Every company shall appoint one or moredesignated persons ashore who shall provide a linkbetween the company and those persons on board theship, and shall have direct access to the highest levelof management of the company.

22 Laws of MalaysiaACT A1316SafetyManagementSystem.(2) The designated person shall monitor the safetyand pollution prevention aspects of the operation ofeach ship and shall ensure that adequate resources andshorebased support are applied.249AH. (1) Every company shall develop, implementand maintain a Safety Management System that shallinclude the following functional requirements:(a) a safety and environmental-protection policy;(b) instructions and procedures to ensure thesafe operation of ships and protection of theenvironment in compliance with relevant lawsand international conventions;(c) defined levels of authority and lines ofcommunication between and amongst shoreand shipboard personnel;(d) procedures for reporting accidents and nonconformitieswith the provisions of thissubheading;(e) procedures to prepare for and respond to emergencysituations; and(f) procedures for internal audits and managementreviews.(2) The Surveyor-General of Ships shall carry outaudits of the Safety Management System of every companyand its ships to verify compliance with the provisionsof this subheading and the rules made hereunder.(3) The company shall notify the Surveyor-General ofShips of any amendments made to the Safety ManagementSystem within thirty days after the amendments havebeen made.(4) Any company who fails to comply withsubsection (1) or (3) shall be liable for each offenceto a fine not exceeding fifty thousand ringgit or toimprisonment for a term not exceeding five years orto both.

Merchant Shipping (Amendment and Extension) 23Master’sresponsibilities.249AI. (1) The company shall ensure that the SafetyManagement System on board the ship contains a clearstatement emphasizing the master’s authority.(2) The company shall establish in the SafetyManagement System that the master has the overridingauthority and responsibility to make decisions withrespect to safety and pollution prevention and to requestthe company’s assistance as when necessary.Issuance ofcertificateor interimcertificate.249AJ. (1) The Surveyor-General of Ships may, uponreceipt of an application from the company and uponverification that he is satisfied that the company hascomplied with all the requirements of this subheadingand the rules made hereunder, issue a Document ofCompliance in the prescribed form in respect of thetype of ships indicated in that document upon paymentof the prescribed fees.(2) Upon obtaining the Document of Compliance, thecompany shall apply for a Safety Management Certificatein respect of each of its ships within the types of shipsas indicated in the Document of Compliance, and theSurveyor-General of Ships may upon being satisfied thatthe company and its shipboard management operate inaccordance with the Safety Management System, issuethe Safety Management Certificate upon payment of theprescribed fees.(3) The Surveyor-General of Ships may issue thecertificate in pursuance of subsection (1) or (2) subjectto any conditions that he may deem fit to impose.(4) The Surveyor-General of Ships may, pending theissuance of the certificate, issue an interim certificatesubject to such conditions as he may deem fit toimpose.(5) Where a company to whom a Document ofCompliance has been issued, applies for the additionof new types of ships to the existing types of ships asindicated in the Document of Compliance, the Surveyor-General of Ships may issue to that company an InterimDocument of Compliance in respect of the new typesof ships.

24 Laws of MalaysiaACT A1316Revocationof certificateor interimcertificate.Surrender ofcertificateor interimcertificate.(6) A Safety Management Certificate shall not beissued based on an Interim Document of Compliance.249AK. (1) The Surveyor-General of Ships may at anytime revoke the certificate or interim certificate issuedto the company under section 249AJ if he is satisfiedthat—(a) there has been a contravention of any provisionof this subheading or any rules made hereunder;or(b) there has been a breach of any condition of thecertificate or interim certificate,provided that no certificate or interim certificate shallbe revoked unless the holder of the certificate or interimcertificate has been given a reasonable opportunityof making a representation against the intendedrevocation.(2) The Safety Management Certificate or InterimSafety Management Certificate, which has been issuedand is associated with the Document of Compliance orInterim Document of Compliance which has been revokedin pursuance of subsection (1), shall be revoked.249AL. (1) Upon the revocation or expiry of thecertificate or interim certificate, the company or masterof the ship shall surrender—(a) the Document of Compliance or Interim Documentof Compliance to the Surveyor-General ofShips, within fourteen days from the date ofits revocation or expiry;(b) the Safety Management Certificate or InterimSafety Management Certificate to the Surveyor-General of Ships within fourteen days of theship’s arrival at a Malaysian port, or if the shipis at a port outside Malaysia, to the nearestMalaysian diplomatic or consular officer whoshall immediately forward the certificate orinterim certificate to the Surveyor-General ofShips.

Replacementof certificateor interimcertificate.Merchant Shipping (Amendment and Extension) 25(2) Any company or master of a ship who fails tosurrender the certificate or interim certificate in accordancewith subsection (1) shall be liable for each offence toa fine not exceeding twenty-five thousand ringgit.249AM. (1) Where any certificate or interim certificateissued under this subheading is lost, defaced or destroyed,the Surveyor-General of Ships may, upon receipt of anapplication from the company and upon payment of theprescribed fee, issue a certificate or interim certificatein lieu of the original certificate or interim certificate,provided that the company proves to the satisfaction ofthe Surveyor-General of Ships that he or it has not causedor contributed to the loss, defacement or destruction ofthe original certificate or interim certificate.(2) Where the original certificate or interim certificateis found after the certificate or interim certificate hasbeen issued in pursuance of subsection (1), the originalcertificate or interim certificate shall be deemed to havebeen revoked and of no effect.Powers toinvestigate.249AN. (1) Investigations in respect of offences underthis subheading may, without prejudice to the provisionsof any other written law relating to investigations, beconducted by the Surveyor-General of Ships.(2) The Surveyor-General of Ships shall have thepower to—(a) go on board any ship or enter into any premisesas he considers necessary;(b) require the master of any ship or company tofacilitate the boarding of the ship or entry intothe premises;(c) require information, whether orally or in writing,from any person supposed to be acquaintedwith the facts and circumstances of the caseunder investigation; or(d) require the production of any certificate, interimcertificate, official log-book or other documentsrelating to the operation of the ship and safemanagement of the company from the masterof the ship or company.

26 Laws of MalaysiaACT A1316(3) The Surveyor-General of Ships may direct anyship to be detained solely for the purpose of conductingan investigation.(4) Any person who—(a) without reasonable excuse refuses or fails tocomply with a requirement made of him bythe Surveyor-General of Ships in the exerciseof his powers under subsection (2); or(b) in respect of a matter that he is required torespond to under subsection (2), makes astatement that is false or misleading in amaterial particular,shall be liable for each offence to a fine not exceedingfifty thousand ringgit or to imprisonment for a term notexceeding five years or to both.Safetyrules.249AO. (1) The Minister may make rules providing forthe safe management and operation of ships including thesafe practices in ship operation, safe working environmenton board ships, the management of persons ashore andavoidance of damage to the environment, in particularthe marine environment and to property.(2) Without prejudice to the generality ofsubsection (1), the rules may—(a) regulate the issuance and revocation ofcertificates and interim certificates, includingprocedures for the application of certificatesand interim certificates, the duration andreplacement of such certificates, and the annualverification of the Document of Complianceand intermediate verification of the SafetyManagement Certificate;(b) provide for standards for the safe managementand operation of ships including the preparationof operational plans on board ships, emergencyresponse, manning, documentation of the SafetyManagement System, master’s responsibilitiesand any matters connected therewith;

Merchant Shipping (Amendment and Extension) 27(c) provide for the establishment and maintenanceof procedures to control all documents and datarelevant to the Safety Management System;(d) provide for the verification of compliance of theSafety Management System through auditingprocedures;(e) prescribe the fees payable in connection with theprovision of any service or any other matterunder this subheading, including the mannerof collecting and disbursing such fees andfor matters relating to the failure to pay suchfees;(f) prescribe the forms that are required for thepurposes of this subheading;(g) prescribe the competency requirement of personswho are carrying out the verification proceduresand practices;(h) provide for penalties for the contravention ofthe provisions of the rules made hereunder of afine not exceeding twenty-five thousand ringgitor imprisonment for a term not exceeding twoyears or to both.”.Amendment of section 306C6. 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 whatevername it may be known, issued under this Part orrecognised by the Director of Marine;’;(b) in the definition of “discharge”—(i) in paragraph (i), by deleting the word “or” appearingat the end of the paragraph;(ii) in paragraph (ii), by inserting after the semicolonthe word “or”; and

28 Laws of MalaysiaACT A1316(iii) by inserting after paragraph (ii) the followingparagraph:“(iii) release of harmful substances directlyarising from the exploration, exploitationand associated off-shore processing ofsea-bed mineral resources;”; and(c) by substituting for the definition of “Malaysian waters”the following definition:‘ “Malaysian waters” means the territorial watersof Malaysia as determined in accordance with theEmergency (Essential Powers) Ordinance No. 7 1969[P.U. (A) 307A/1969];’.New section 306CA7. The Ordinance is amended by inserting after section 306C thefollowing section:“Prohibitionofdischargeof oil orharmfulsubstance.306CA. (1) Subject to subsection (2) and any circumstancesas may be specified in the rules or Malaysia ShippingNotice, the discharge of oil or harmful substances intoany part of Malaysian waters, any Malaysian coast orMalaysian reef is prohibited.(2) Subsection (1) shall not apply to any dischargeof oil or harmful substances—(a) which is necessary for the purpose of securingthe safety of a ship or saving life at sea;(b) resulting from damage, other than intentionaldamage, to a ship or its equipment and, allreasonable precautions have been taken afterthe occurrence of the damage or discovery ofthe discharge for the purpose of preventingor, if it could not be prevented, stopping orminimizing the discharge; or

Merchant Shipping (Amendment and Extension) 29(c) which is for the purpose of combating specificpollution incidents in order to minimise damagefrom pollution and is approved by the Director ofMarine and, where the discharge occurred withinthe jurisdiction of the government of a countryother than Malaysia, by that government.(3) For the purposes of subsection (2), damage to aship or its equipment shall be deemed to be intentionaldamage if the damage arose in circumstances in whichthe owner or master of the ship—(a) acted with intent to cause the damage; or(b) acted in a reckless manner and with knowledgethat the damage would probably result.(4) Any person who contravenes subsection (1) shallbe liable for each offence to a fine not exceeding fiftythousand ringgit or to imprisonment for a term notexceeding two years or to both.”.New sections 306JA and 306JB8. The Ordinance is amended by inserting after section 306J thefollowing sections:“Investigationof amaritimecasualty.306JA. (1) Where a maritime casualty has occurred, theDirector of Marine may cause an investigation to beconducted by a port officer or an authorised officer todetermine the nature and causes of the maritime casualtyor damage which the ship has sustained or the extentof damage caused to Malaysian waters, any Malaysiancoast or Malaysian reef.Protectionof acts donein exerciseof certainpowersof theGovernment.(2) The person conducting the investigation undersubsection (1) shall have the powers of an Inspectorunder the Ordinance and shall submit the findings ofsuch investigation to the Director of Marine.306JB. The Government shall not be held liable in anycircumstances where any discharge of oil or harmfulsubstances is in consequence of the exercise of any of itspowers in relation to the removal of wrecks, preventingan obstruction or danger to navigation, or the disposalof sunk, stranded or abandoned vessels.”.

30 Laws of MalaysiaACT A1316New sections 306L, 306M, 306N, 306O, 306P, 306Q and 306R9. The Ordinance is amended by inserting after section 306K thefollowing sections:“Issuance ofcertificateor interimcertificate.Revocationof certificateor interimcertificate.306L. (1) The Director of Marine may, upon receipt ofa written application from an owner of a ship and uponbeing satisfied that the ship has complied with all therequirements of this Part, the rules made hereunder orthe technical requirements relating to marine pollution asissued by the Director of Marine in Malaysia ShippingNotices, issue a certificate in the prescribed form inrespect of such ship upon payment of the prescribedfee.(2) The Director of Marine may issue the certificatein pursuance of subsection (1) subject to any conditionsor restrictions that he may deem fit to impose.(3) The Director of Marine may, pending the issuanceof the certificate, issue an interim certificate subject tosuch conditions or restrictions as he may deem fit toimpose.306M. (1) The Director of Marine may at any timerevoke the certificate or interim certificate issued undersection 306L to the ship if he is satisfied that—(a) there has been a contravention of any provisionof this Part, any rules made hereunder orany technical requirements relating to marinepollution as issued by the Director of Marinein Malaysia Shipping Notices; or(b) there has been a breach of any conditionor restriction of the certificate or interimcertificate,provided that no certificate or interim certificate shallbe revoked unless the holder of the certificate or interimcertificate has been given a reasonable opportunityof making a representation against the intendedrevocation.

Replacementofcertificateor interimcertificate.Merchant Shipping (Amendment and Extension) 31306N. (1) Where the certificate or interim certificateissued under section 306L is lost, defaced or destroyed,the Director of Marine may, upon receipt of an applicationfrom the owner of the ship and upon payment of theprescribed fee, issue a certificate or interim certificatein lieu of the original certificate or interim certificate,provided that the owner of the ship proves to thesatisfaction of the Director of Marine that he has notcaused or contributed to the loss, defacement or destructionof the original certificate or interim certificate.(2) Where the original certificate or interim certificateis found after the certificate or interim certificate hasbeen issued in pursuance of subsection (1), the originalcertificate or interim certificate shall be deemed to havebeen revoked and of no effect.Authorisationto issue,replaceor revokecertificates,etc.Recognitionofcertificate.306O. (1) Notwithstanding section 306L, the Directorof Marine may authorise in writing any person ororganisation to issue, replace or revoke certificates orinterim certificates in accordance with the provisions ofthis Part.(2) Every certificate or interim certificate issuedby any person or organisation authorised undersubsection (1) shall have effect for the purposes ofthis Part as if it had been issued by the Director ofMarine.306P. The Director of Marine may recognise a certificateissued to a ship by or under the authority of anotherparty to an international convention relating to marinepollution, if he is satisfied that the requirements of theconvention are fully complied with.Inspectionanddetention ofship.306Q. (1) The Director of Marine or any authorisedofficer may go on board and inspect any ship and ifsatisfied after the inspection that there is a contraventionof any provision of this Part or any rules made hereunder,or that the ship has failed to comply with any conditionor restriction of the certificate, the Director of Marinemay detain the ship.(2) The Director of Marine may allow the ship detainedunder subsection (1) to leave any port or place in Malaysiaor Malaysian waters for the purpose of continuing itsvoyage directly to the nearest and appropriate ship repairfacility.

32 Laws of MalaysiaACT A1316Prohibitionof foreignshipsenteringMalaysianwaters forreasonof noncompliance.(3) The Director of Marine or any authorised officershall not, in exercising his powers under this section,unreasonably detain any ship.306R. Where the Director of Marine has reasonablegrounds to believe that a foreign ship does not complywith any provision of this Part or the rules made hereunderthat is applicable to such ship, he may prohibit the shipfrom entering any area of Malaysian waters.”.Amendment of section 491B10. Subsection 491B(1) of the Ordinance is amended—(a) in paragraph (i), by deleting the word “or” appearing atthe end of the paragraph;(b) in paragraph (j), by substituting for the comma at theend of the paragraph a semicolon; and(c) by inserting after paragraph (j) the followingparagraphs:“(k) ship-to-ship activity; or(l) any other activity as determined by the Directorof Marine,”.New section 519A11. The Ordinance is amended by inserting after section 519 thefollowing subheading and section:“Malaysia Shipping Notice.Power ofDirectorof Marineto issueMalaysiaShippingNotices.519A. (1) Subject to the provisions of the Ordinance, theDirector of Marine may issue Malaysia Shipping Noticesin respect of administrative matters or technical mattersrelating to shipping, navigation, maritime transport safetyand security and marine pollution, as may be necessaryfor the purposes of the Ordinance.

Merchant Shipping (Amendment and Extension) 33(2) The Director of Marine may, in the MalaysiaShipping Notice, prescribe that any provision of thatnotice shall be applicable to any specified person orship, or classes of ships.(3) The rules relating to shipping, navigation, maritimetransport safety and security and marine pollution madein pursuance of this Ordinance may provide that noncompliancewith Malaysia Shipping Notices shall be anoffence.”.Extension of the Ordinance to the Federal Territory ofLabuan12. Subject to the Constitution (Amendment) (No. 2) Act 1984[Act A585], the Ordinance is extended to the Federal Territoryof Labuan.The Merchant Shipping Ordinance 1960 of Sabah ceases tohave effect in the Federal Territory of Labuan13. (1) The Merchant Shipping Ordinance 1960 of Sabah[Sabah Ord. 11/1960] shall, on the date of coming into operationof this Act, cease to have effect in the Federal Territory ofLabuan.(2) Any port or place in the Federal Territory of Labuandeclared to be a port under the Merchant Shipping Ordinance1960 of Sabah shall be deemed to be a port as declared underthe Ordinance.(3) Any exemption, permit or licence issued or granted underthe Merchant Shipping Ordinance 1960 of Sabah in the FederalTerritory of Labuan before the date of coming into operation ofthis Act, shall on the date of coming into operation of this Actcontinue to be in force and have effect until it expires, or fora period of one year after the date of coming into operation ofthis Act, whichever is the earlier.(4) Upon the expiry of the exemption, permit or licence or afterthe period of one year after the date of coming into operation ofthis Act, whichever is the earlier, the applicant may apply for anexemption, permit or licence in accordance with the provisionsof the Ordinance.

34 Laws of MalaysiaACT A1316(5) All applications, approvals or, decisions on appeal orotherwise, pending under the Merchant Shipping Ordinance 1960of Sabah in the Federal Territory of Labuan before the date ofcoming into operation of this Act, shall on the date of cominginto operation of this Act continue to be dealt with as if this Acthad not been enacted.(6) All registers, log books and other documents kept andmaintained under the Merchant Shipping Ordinance 1960 of Sabahin the Federal Territory of Labuan before the date of coming intooperation of this Act, shall on the date of coming into operationof this Act be deemed to be registers, log books and documentskept and maintained under the Ordinance.(7) Any proceedings, whether civil or criminal, or cause ofaction pending or existing before the date of coming into operationof this Act, shall on the date of coming into operation of this Actcontinue to be dealt with as if this Act had not been enacted.Extension of Parts V and VA of the Ordinance to Sabah andSarawak14. (1) The provisions of Parts V and VA of the Ordinance areextended to the States of Sabah and Sarawak.(2) Such of the definitions in section 2 of the Ordinance asare necessary to give effect to the extended provisions of theOrdinance shall apply to those extended provisions.(3) Where references are made in the extended provisions of theOrdinance to other provisions in the Ordinance, such provisionsof the Ordinance shall apply to those extended provisions tosuch extent as may be necessary to give effect to the extendedprovisions of the Ordinance.Repeal of provisions in written laws of Sabah and Sarawakcorresponding to the provisions of Part V of the Ordinance15. The provisions of any written law corresponding to theprovisions of Part V of the Ordinance and in force in the State ofSabah or Sarawak immediately before the date or dates appointedin subsection 1(3) shall, upon the date or dates so appointed, bedeemed to be repealed.

Merchant Shipping (Amendment and Extension) 35Provisions of Part V of the Ordinance to prevail over inconsistentor contrary written law16. The provisions of Part V of the Ordinance shall prevailnotwithstanding anything inconsistent with or contrary to thoseprovisions in any other written law.References to “Ordinance” in the Merchant Shipping Ordinance1960 of Sabah and the Merchant Shipping Ordinance 1960 ofSarawak include references to extended provisions17. In the Merchant Shipping Ordinance 1960 of Sabah andthe Merchant Shipping Ordinance 1960 of Sarawak [SarawakOrd. 2/1960], any reference to such Ordinances shall be construedas including a reference to the provisions of the Merchant ShippingOrdinance 1952 as extended by this Act.Amendment of the Merchant Shipping Ordinance 1960 ofSabah18. The Merchant Shipping Ordinance 1960 of Sabah is amendedin the manner as specified in the First Schedule.Amendment of the Merchant Shipping Ordinance 1960 ofSarawak19. The Merchant Shipping Ordinance 1960 of Sarawak isamended in the manner as specified in the Second Schedule.Validation20. (1) All Malaysia Shipping Notices issued by the Directorof Marine before the coming into operation of this Act shall bevalid and have effect as if the said Malaysia Shipping Noticeshave been made under the appropriate provisions of the Ordinanceand shall be deemed to have come into operation from the dateon which it came into operation or was purported to have comeinto operation.

36 Laws of MalaysiaACT A1316(2) Any decision or order given in respect of any person or anyother act or thing whatsoever done or omitted to be done underor by virtue of any Malaysia Shipping Notice whensoever madeor purported to have been made is declared lawful and herebyvalidated.FIRST SCHEDULE[section 18]AMENDMENTS OF THE MERCHANT SHIPPINGORDINANCE 1960 OF SABAH(1) (2)ProvisionsAmendmentsSection 2(1) Substitute for the definition of “collisionregulations” the following definition:‘ “collision regulations” means regulationsmade under section 252 of the MerchantShipping Ordinance 1952 of the Federationof Malaya [Ord. 70/1952];’.(2) Substitute for the definition of “radio rules”the following definition:‘ “radio rules” means rules made undersection 262 of the Merchant ShippingOrdinance 1952 of the Federation ofMalaya;’.(3) Substitute for the definition of “SafetyConvention” the following definition:‘“Safety Convention” means theInternational Convention for the Safetyof Life at Sea signed in London on1 November 1974; and if any amendmentof the Safety Convention comes into forcewith respect to Malaysia, references inthis Ordinance to the Safety Conventionshall, unless the context otherwise requires,be construed as references to the SafetyConvention as amended;’.(4) Delete the definition of “Safety Conventioncountry”.

Merchant Shipping (Amendment and Extension) 37SECOND SCHEDULE[section 19]AMENDMENTS OF THE MERCHANT SHIPPINGORDINANCE 1960 OF SARAWAK(1) (2)ProvisionsAmendmentsSection 2(1) Substitute for the definition of “collisionregulations” the following definition:‘ “collision regulations” means regulationsmade under section 252 of the MerchantShipping Ordinance 1952 of the Federationof Malaya [Ord. 70/1952];’.(2) Substitute for the definition of “radio rules”the following definition:‘ “radio rules” means rules made undersection 262 of the Merchant ShippingOrdinance 1952 of the Federation ofMalaya;’.(3) Substitute for the definition of “SafetyConvention” the following definition:‘ “Safety Convention” means theInternational Convention for the Safetyof Life at Sea signed in London on1 November 1974; and if any amendmentof the Safety Convention comes into forcewith respect to Malaysia, references inthis Ordinance to the Safety Conventionshall, unless the context otherwise requires,be construed as references to the SafetyConvention as amended;’.(4) Delete the definition of “Safety Conventioncountry”.DICETAK OLEHPERCETAKAN NASIONAL MALAYSIA BERHAD,KUALA LUMPURBAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA