Asia/Pacific News
Malaysia's Bunkering Sector has 'Huge Potential'
As demand for marine gasoil takes off after January 2020, one Malaysian bunker player sees opportunity ahead.
Straits Inter Logistics managing director, Datuk Seri Ho Kam Choy, has said that his company supplies 0.05% which is a great starting point when the International Maritime Organisation has set the sulfur limit for bunker fuel at 0.5%.
"We anticipate the market size will grow for the MGO bunkering business as more demand shifts to MGO," the executive was quoted as saying by regional news provider the Edge.
By his own estimate, Choy believes the overall market for bunkering in Malaysia is bigger than that of neighbouring Singapore. The problem is much of the activity is illegal.
"[About] 70% [of the overall bunker market in Malaysia] is being supplied by illegal operators." Of the legitmate 30%, SIL has around a quarter market share, in part, due to its recent acquisition of Tumpuan Megah Development. On that basis, there is "huge potential" in the Malay bunkering sector.
The recent uptick in activity by the country's marine authorities to curb illegal bunkering is to be welcomed, Choy said.
