INTRODUCTION: MALAYSIA, A MARITIME NATION AT THE HEART OF A VIBRANT ECONOMIC REGION

Malaysia's economy, one of the brightest shining stars in the developing world, has undergone rapid transformation from being a commoditiesbased economy in the 1970s to a manufacturing-driven, export-oriented one today. A major producer of electronics and electrical goods, Malaysia was ranked the 8th largest trading nation in the world in 2009 by the World Trade Organization (WTO). It recorded a total trade value of RM1.169 trillion in 2010 and its external trade balance was at a surplus of RM110.1 billion.

As a nation surrounded by seas, it is not surprising that Malaysia depends heavily on seaborne transport to facilitate its trade. An estimated 95 per cent of the nation's trade is carried in whole or in part by maritime means. Hence, the importance of its seaports and other supporting maritime trade infrastructures to the nation's economic well-being cannot be overstated.

Given this reliance, it should not come as a surprise that Malaysia was ranked 23rd in the list of the world's top maritime nations based on its registered dead weight merchant shipping tonnage. The country contributed 10.25 million DWT or 0.8 per cent of the world total merchant shipping tonnage as of 1 January 2010 and 0.8 per cent to the world total merchandise trade in terms of value.

Underscoring Malaysia's clout as a maritime nation, it boasts two of the world's top twenty busiest container ports, namely Port of Tanjung Pelepas (PTP), the nation's transshipment hub, and Port Klang, the national load centre. Port Klang handled 8.87 million TEU while PTP handled 6.53 million TEU in 2010, and were ranked 14th and 18th, respectively, in the list of top twenty busiest container ports by throughput handled. Johor Port, located in the southern tip of Peninsular Malaysia, is the world's largest palm oil export terminal, while Bintulu Port in the state of Sarawak on Borneo Island is the world's largest LNG export terminal.