26 April 2006

Distinguished Guests,

Ladies and Gentlemen,

 

A very good morning to all. I am very pleased to be here at this Revolving Fund Handover Ceremony. As I understand it, today's event not only marks the transfer of management of the Revolving Fund from Malaysia to Singapore, it also celebrates the 25th anniversary of the Revolving Fund. It is very heartening to note that even after 25 years, the commitment of Indonesia, Malaysia, Singapore and Japan to promote navigational safety and protect the marine environment in the Straits of Malacca and Singapore remains as strong as ever.

 

Marine pollution, in particular oil pollution from ships, is an important issue that has attracted increasing global attention in recent decades. At the international level, much effort has been taken by the International Maritime Organisation to minimise oil pollution from ships by ensuring that oil tankers are built and operated to the highest safety standards. At the regional and local levels, similar focus should also be given to ensure the protection of the marine environment.

 

The Straits of Malacca and Singapore are among the busiest and most critical waterways in the world, with one-third of the world's trade and half of the world's oil supply carried by some 90,000 vessels that use the Straits each year. It is therefore in the vital interest of the littoral States and the international community to ensure that the Straits are kept safe and clean. While this is primarily the responsibility of the three littoral States, users of the Straits can also play an important role. For one, they should ensure that their ships meet international standards for quality shipping and that their Masters and crew are well trained and alert while on duty. Users can also share in the burden of maintaining the aids to navigation and protecting the marine environment in the Straits.

 

The Revolving Fund is a good example of co-operation between the littoral States and the users of the Malacca and Singapore Straits to safeguard its marine environment. It was established on 11th February 1981 through a Memorandum of Understanding signed by Indonesia, Malaysia, Singapore and the Malacca Strait Council, which is supported by the Japanese shipping community.

 

Under the MOU, the Malacca Strait Council contributed 400 million yen as the principal sum for the Revolving Fund. The Fund is managed by the three littoral States on a rotational basis for a period of 5 years each, and the Revolving Fund Committee establishes rules and procedures for administering the Fund. Any of the three littoral States is able to draw from the Fund to take immediate remedial actions to combat oil pollution caused by ships in the Straits. The amount drawn would subsequently be repaid to the Fund when the State recovers the clean-up costs from the ship owners responsible.

 

Over the years, the Revolving Fund has proven to be a very valuable resource. By acting as a readily available back-up Fund, it has enabled the littoral States to take prompt actions to handle any major oil spill that occurs in the Straits. It has also served as an important platform for further co-operation between the littoral States and Japan to promote safe navigation and protect the marine environment in the busy waterway.

 

For example, under the auspices of the Revolving Fund, the littoral States have developed a set of Standard Operating Procedures for Joint Oil Spill Combat in the Straits. Regular joint exercises are carried out to test the procedures and any lessons learnt used to further improve and update these procedures. A number of workshops and conferences have also been organised to update and inform relevant personnel of the latest developments in oil spill clean-up and recovery, the practical significance of the various compensation regimes, as well as other related issues.

 

Japan, through organisations such as the Malacca Strait Council, the Nippon Foundation and the Japan Association of Marine Safety, has been a longstanding and much valued partner of the littoral States. Apart from the Revolving Fund, these Japanese organisations have also made important contributions in many other areas since the 1970s. These include hydrographic surveys of the Straits, installation of aids to navigation, and the establishment of an ASEAN-wide Oil Spill Preparedness and Response (OSPAR) plan. More recently, in December 2005, the littoral States and Japan joined forces to produce the electronic navigational chart (ENC) covering the Malacca and Singapore Straits. The use of the ENC by ships when sailing through the Straits will further enhance navigational safety and help to reduce accidents and the risk of oil pollution.

 

I would like to take this opportunity to express my sincere thanks to the Japanese maritime community, including the various governmental and non-governmental organisations that have contributed to the effective maintenance of the Malacca and Singapore Straits.

 

As world trade continues to expand and shipping traffic increases, the task of maintaining safety and preserving the marine environment in the Straits grows in tandem. There is therefore an urgent need for wider co-operation between the littoral States and other users of the Straits to ensure that this vital channel remains safe and open to traffic. In this regard, the Revolving Fund serves as an example of an effective mechanism for international co-operation in the maintenance of the Straits. We will seek to engage more stakeholders of the Straits to co-operate in keeping the Straits safe and clean for international shipping.

 

Before I end, I would like to thank Malaysia, on behalf of the other members of the Revolving Fund Committee, for its excellent work in the past five years in managing the Fund. Singapore will certainly endeavour to maintain the same high standards as we take over the management of the Fund and the chairmanship of the Committee for the next five years.

 

Thank you.