Definition of domestic shipping under Section 65A of the Merchant Shipping Ordinance 1952 [Ordinance No.70/1952] (“MSO 1952”) refers to the usage of vessels for the following purposes:

1. to provide services, other than fishing, in the Federation waters or the Exclusive Economic Zone; or
2. for the shipment of goods or the carriage of passengers:
1. from any port or place in Malaysia to another port or place in Malaysia; atau
2. from any port or place in Malaysia to any place in the Exclusive Economic Zone or vice versa.

Domestic Shipping License

Section 65L of OPS 1952 provides that all vessels engaged in domestic shipping services must have a Domestic Shipping License (DSL). The failure of any owner, charterer, master or agent of a ship to possess a valid license is an offense and if convicted of such offense is liable to a fine not exceeding RM10,000 or to imprisonment not exceeding one year or to both.

Exemption from Section 65L MSO 1952

Subsection 65L (3) MSO 1952 provide exemption from Section 65L to the following Malaysian Registered Vessels:

1. net weight under 15 tonnes;
2. licensed under Section 475 MSO 1952 (boat license);
3. licensed under MSO 1960 (Sabah) and (Sarawak); ); and
4. owned/leased by Malaysian Government, State Government or Port Authority.

Cabotage Policy

Section 65KA MSO 1952 restricts domestic shipping to Malaysian Registered Vessels only. The use of Foreign Registered Vessels can only be considered if the Malaysian Registered Vessel is unable to meet the demands of certain sectors subject to the terms and conditions set by the Minister of Transport