Waters near Johor and Malacca now world’s top piracy hotbed

Waters near Johor and Malacca now world’s top piracy hotbed

Tuesday, September 24, 2013 – 09:08

The Star/Asia News Network

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PETALING JAYA – The treacherous waters off Somalia used to be the world’s most dangerous marine passageway. That dubious distinction has moved a lot closer to home, with the waters near Johor and Malacca now surpassing Somalia as the top piracy hotbed, according to the Inter­na­tional Maritime Bureau. It attributed this to the rise in piracy off Indonesia’s Tanjung Priok, Dumai, Belawan, Taboneo and Muara Jawa – where the waters have been marked as hot spots.Although the Straits of Malacca remains safe for international shipping, the Kuala Lumpur-based IMB has warned mariners to take precautions when plying the 960km stretch shared by Malaysia, Indonesia and Singapore.

The major concern is the increasing number of attacks in Indonesian waters, which are between 45 minutes and two hours away by sea from Malacca and Johor.

With its thousands of islands and many river mouths covered with mangroves, the coastal region of Indonesia is ideal for pirates to hide and evade capture. Pirates operating in the Indonesian waters are armed with guns, knives and machetes and are known to be violent.

Of the 138 piracy incidents recorded worldwide in the first six months of this year, 48 were in Indonesia, the IMB said in its report.

While global piracy had dropped substantially, down from 439 cases in 2011, the trend in Indonesia, however, was increasing, it said.

IMB said high-sea robberies in the straits had dropped following agg­ressive patrolling by the littoral states, but there were no indications as to how long this would continue.

IMB’s head of piracy reporting centre Noel Choong said the piracy att­racts were contained in Indonesian waters and the enforcement agencies had prevented it from spreading.

He said they had told related agencies in Indonesia to take action so that the crisis would not spill over to the busy straits.

“Although the cases reported were petty thefts, these robbers can still be dangerous to mariners,” he said.

Centre of Maritime Excellence Sdn Bhd’s chief executive officer, Datuk Capt Jaffar Lamri, said the close proximity of the attacks to Malaysia was a major concern.

“Although the cases involved petty thieves looking for easy targets, these could spill into our waters if not contained.”

About half the world’s oil supplies and a third of global trade pass through the Straits of Malacca.

A maritime security analyst said the rise of piracy cases in Indonesian waters was due to lack of vigilance.

“This situation is made worst by the lack of economic opportunities.”

He said that big ocean-going vessels plying the route were aware of the problem and were on high alert.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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