[Kabar-indonesia] War risk rating on Malacca could hurt funding for security patrols: Malaysia

[JoyoNews at aol.com]

KL: War risk rating on Malacca could 
hurt funding for security patrols 

KUALA LUMPUR, Malaysia, Aug. 1 (AP) - Malaysia said Tuesday the declaration 
of Malacca Strait as a war-risk zone by British-based insurer Lloyd's could 
hurt the region's ability to fund increased patrols there just as it is 
beginning to reduce piracy in the busy waterway.

Attacks in the Malacca Strait, a 965-kilometer narrow waterway between 
Indonesia's Sumatra island and peninsular Malaysia on the other, have decreased 
drastically since coordinated sea patrols began in 2004, Malaysia's transport 
minister Chan Kong Choy said.Air patrols over the strait began the following year.

"The increased insurance premiums would inevitably impact on the littoral 
states' economies," said Chan at a conference hosted by Maritime Institute of 
Malaysia. "This will in turn hurt their ability to continue funding the 
enhancement of the safety andsecurity of navigation in the straits."

In June 2005, the Joint War Committee of the British-based global shipping 
insurer Lloyd's Market Association heaped a war risk rating on the Strait of 
Malacca, adding to transport costs for vessels passing through the sealane - one 
of the world's busiest.

Besides conflict areas, the "war risk" rating can be attached to areas 
considered at threat from maritime piracy or terrorism. Companies and government 
officials in Malaysia, Singapore andIndonesia, the three states bordering the 
strait have protested the war risk rating.

"We are confused," said Chan at the conference, attended by international 
maritime security and environmental officials.

"At the very least, it should provide clearly what are the requirements for 
the delisting instead of keeping the littoral states guessing," he added.

The International Maritime Bureau said last week that attacks in the waterway 
dropped to three in the first six months of 2006 from eight the previous 
year. Attacks have been dropping since the patrols were launched, the piracy 
watchdog said.

More than 60,000 vessels ply the route yearly, Chan said. It transports half 
the world's oil and more than a third of its commerce.

The pinch will be felt when traffic - and costs of transportation - increases 
in the strait. Governments will then be forced to bear a certain portion of 
the burden to keep costs from being passed to consumers, Malaysian officials 
said. 

------------------------------------------
Joyo Indonesia News Service
------------------------------------------