1. law, govt and politics
2. law enforcement
3. coast guard

A Maritime Nation
Faizul Ismail, VP LNG Business, MISC Berhad | Jakarta, Indonesia | 21 April 2015
Disclaimer
Certain statements made in this presentation and in other written or oral statements made by
MISC Berhad are “forward-looking statements” that involve subjective judgement and analyses
and are subject to significant uncertainties, risks and contingencies, many of which are outside
of, or unknown to MISC Berhad. A forward-looking statement is a statement that is not a
historical fact and, without limitation, includes any statement that may predict, forecast, indicate
or imply future results, performance or achievements, and may contain words like: “believe”,
“anticipate”, “expect”, “estimate”, “project”, “will”, “shall” and other words or phrases with
similar meaning. Actual future events may vary materially from the forward looking statement
and the assumptions on which the forward looking statements are based. Given these risks and
uncertainties, readers should not place undo reliance on forward-looking statements as a
prediction of actual results.
These forward looking statements speak only as of the date of this presentation. MISC Berhad
disclaims any obligation or undertaking to publicly update or revise any of the forward looking
statements in this presentation, whether as a result of new information, or any change in events,
conditions or circumstances on which any such statement is based.
Potential of the Maritime Industry
Key Features to stimulate the development of a Maritime
Industry
Risks, Issues and Challenges
Conclusion
Potential of the Maritime
Industry
Indonesia is blessed with a strategic geographical landscape:
 Total population of over 252 million people
 consists of 17,508 islands, about 6,000 of which are inhabited, scattered over both
sides of the equator.
 shares maritime borders with Singapore, Malaysia, the Philippines, Palau to the north,
and Australia.
 At 1,919,440 square kilometres (741,050 sq mi), Indonesia is the world's 15th-largest
country in terms of land area and world's 7th-largest country in terms of combined sea
and land area
 Improved Balance of Payment
 Revenue
 Job/employment creation
 National Defense
 Supporting Industries
“Although Shipping is an internationally competitive business, the Cost of
Management, Administration and Operations is mainly determined by the
country of registration and operation.”
Key Features to stimulate the
development of a
Maritime Industry
 Government incentives that promotes growth.
 Policies and regulations
 Financial Incentives
 Maritime Master Plan
 allows flexibility in policy shifts to respond to
unexpected events and shocks in the
economy.
 Maritime Education
 Efficient and competitive shipping industry
 Government link companies
 to support the maritime industry
 Shipping companies are to be offered more
competitive financial structures for
investment.
 Provide more flexibilities in loan arrangement
that enable them to refinance
 Grants, subsidies or any other form of
financial assistance that could help to build
business confidence
 Research and Development initiatives
 Singapore has formulated a successful maritime industry, due to
its efficient policies :
:
 Various Tax incentive scheme
 Indirect taxes simplification Tonnage based tax
 Effective and comprehensive role of MPA
 R&D allocation
20
SEAFARING
Deck and Engineering Officers, Ratings
MARITIME
ENGINEERING
Naval Architecture, Offshore Engineering, Marine
System Engineering, Coastal Engineering
MARITIME
BUSINESS
Business, Management, Finance, Transport, Logistics
MARITIME
OPERATIONS
*
FISHERIES
MARINE
ENVIRONMENT
MARINE TOURISM
Pilotage, Stevedoring, Port and Terminal Operations,
Fishing Management, Aquaculture
*
Protection of Sea, Coastal Zone Management
Marine Tourism Management and Operations
 Indonesia Maritime Education and training Institutes Include :
 Institut Teknologi Sepuluh Nopember, Surabaya (Faculty of Marine
Technology),
 Universitas Hasanuddin, Makassar (Department of Naval Architecture):
 Politeknik Ilmu Pelayaran, Semarang.
 Politeknik Ilmu Pelayaran, Makass, Universitas Maritim Raja Ali Haji
(UMRAH). Tanjungpinang, kepulauan Riau,
 Akademi Pelayaran Niaga Indonesia "AKPELNI" Semarang.
 Sekolah Tinggi Maritim Transport "AMNI”
MISC has utilized the incentives provided by the Government to grow
from a single vessel operator in 1968 to an international player in the
global maritime industry. Currently MISC is the world’s third leading
international shipping conglomerate by market capitalisation
Global Market Capitalisation
As at 31 December 2014
Rank
1
2
3
4
5
6
7
8
9
Companies
A.P. Moeller-Maersk A/S
China COSCO Holdings Company Limited
MISC Berhad
China Shipping Container Lines Co Ltd
Tianjin Marine Shipping Co. Ltd.
Nippon Yusen Kabushiki Kaisha
China Shipping Development Company
Orient Overseas (International)
Mitsui O.S.K. Lines, Ltd.
10
Qatar Navigation
Country
Denmark
China
Malaysia
Hong Kong
China
Japan
Hong Kong
Hong Kong
Japan
Mkt Cap USD mil
43,432,382,464
10,131,338,240
9,204,222,976
7,497,781,760
5,107,275,776
4,853,041,152
3,980,321,024
3,660,058,368
3,613,624,320
Category
Conglomerate
Conglomerate
Conglomerate
Container
Container
Conglomerate
Conglomerate
Container
Conglomerate
Qatar
3,129,017,856
Conglomerate
Fleet Strength
As at 31 Dec 2014
LNG
Carriers
29
*5 Vessels on order
Petroleum
Tankers
Chemical
Tankers
76
15
Fleet Strength As at 31 Dec 2014
LPG
Carrier
Offshore
Facilities
1
12
LNG Shipping trading routes
Canada
Europe
Turkey
South Korea Japan
Kuwait
Qatar, UAE
China
Algeria
Egypt
Oman India
Taiwan
USA
Mexico
NLNG T7
Nigeria
Trinidad
& Tobago
Yemen
Equatorial
Guinea
Malaysia, Brunei
Indonesia
Brazil
Existing
Routes
Chile
Australia
MISC’s Core Businesses
LNG
Petroleum
Chemical
Offshore
Heavy Engineering
Tank Terminal
Integrated Logistics
Malaysia Maritime Academy
Listed on Bursa Malaysia
Risks, Issues and
Challenges
 Trade Imbalance
 Oil & Gas Exploration and Production limitation
 Ports Efficiency can be affected.
 Cargo logistics can be inefficient
In short……
 The benefits of a strong maritime industry:
 provides business portfolios opportunities to expand
internationally.
 greater cooperation between neighboring countries, to
promote the ASEAN single shipping market initiative.
 The Government plays a key role in the success or failure of a
country’s Maritime Industry.
The industry needs conducive
governmental legislations as well as efficient administrative and
operational support. This will enhance pricing competitiveness
and operational efficiency to compete in the shipping arena.
“A true maritime nation is one which has the capability to fully exploit
its God given maritime endowments to enhance its socio‐economic
standing among the community of nations.”
Tun Dr Mahathir Mohamed
Thank You