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Oon & Bazul to shipowners: Measures to take before anchoring, conducting STS ops in Malaysian waters

Prakaash Silvam of law firm Oon & Bazul LLP shared with Manifold Times on steps shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters to avoid detention.
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Oon & Bazul to shipowners: Measures to take before anchoring, conducting STS ops in Malaysian waters

Prakaash Silvam, who heads the Shipping Department at Oon & Bazul LLP, shared with Singapore-based bunkering publication Manifold Times what shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters as well as steps to avoid ships being detained by local  authorities:

On 5 November 2023, the Malaysian Maritime Enforcement Agency (MMEA) detained two vessels in Kapar waters, Selangor, for conducting STS oil transfer activities, without obtaining the due authorisation. Such enforcement operations are a frequent occurrence. Just in 2023 alone, more than 70 vessels have been detained so far for illegal anchoring and STS transfers.

What do shipowners need to do to avoid detention?

Pursuant to the Merchant Shipping Ordinance 1952, it is illegal to anchor in Malaysian waters without obtaining a permit. Section 491B of the ordinance mandates that the vessels must notify the director of the marine or port office, regarding their planned activities within Malaysian waters, and obtain due authorisation. Failure to do so results in detention by the Malaysian authorities.

In addition to the lack of awareness of what the local laws require, it is not uncommon for there to be a misunderstanding as to where Malaysia’s territorial waters begin. For instance, the territorial limits in Southern Johor waters, often inaccurately referred as ‘Singapore OPL East’, extend as much as 60 Nautical Miles from the main coastline in Malaysia. There are no “international waters” outside Singapore waters and vessels are either in Malaysian or Indonesian territorial waters.

Shipowners are recommended to take the following measures prior to anchoring:

• Take additional efforts to check their exact location, such as keeping the “1979 Malaysian Territorial Waters Chart” onboard. The Malaysian authorities rely on this chart to determine if a vessel has entered its territorial waters. The regular navigational charts of this area may not be accurate with regards to the national boundaries.

• Obtain information on the designated anchorage area, by contacting the relevant authorities.

• Appoint a local agent and get permission from local port authority prior to carrying out their intended act.

What is the process should a vessel be detained?

Once a vessel has been detained, owners can expect the following investigative steps to be taken by the MMEA:

The Master and Chief Officer/Chief Engineer are usually taken ashore to MMEA’s office to give their statements. They are questioned about their qualifications and experience, details of the voyage undertaken, and reasons for anchoring at that specific location. The MMEA confiscates the ship’s documents and the passports of the crew members.

Once the crew’s statements have been taken, the MMEA hands over the matter to the Marine Department to prosecute the matter and a hearing before the magistrate will be fixed.

As per section 314 of the Criminal Procedure Code (CPC), the owners are required to pay a bond in order to procure the release of the vessel. The bond is to secure any fine that may be levied on the shipowners at a later date.

After the bond has been paid and the documents of the ship are returned to the vessel, the vessel can sail. Subsequently, owners can choose either to admit liability or to dispute the charges. The maximum fine for each offence is RM 100,000 (approximately USD 24,000). The entire process of getting the vessel released can take up to a few weeks. Our Malaysian associate office, TS Oon & Partners, has substantial experience handling such matters and have represented numerous shipowners to release their vessels (some as quick as within a week of being detained) and substantially reduce the fines which are payable.

Related: MMEA detains two Malaysia-registered tankers for illegal STS oil transfer

Photo credit: Oon & Bazul
Published: 27 November, 2023

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Winding up

Singapore: Notice of intended dividend issued for Xihe Holdings

Creditors of the company will have to submit proof of debt to the liquidators of Xihe Holdings by 9 July at 5pm, according to Government Gazette notice.
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June 15, 2026

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A notice to declare the intended dividend of Xihe Holdings Pte Ltd to its creditors has been posted on the Government Gazette on Thursday (11 June).

Name of Company : Xihe Holdings (Pte) Ltd (In Liquidation)
Unique Entity No. / Registration No.: 199002021M
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Court : High Court of Singapore
Number of Matter : HC/CWU 40/2022
Last Day for Receiving Proofs : 9 July 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

 

Photo credit: steve pb from Pixabay
Published: 15 June, 2026

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Winding up

Singapore: Notice of dividend issued for Hin-Leong linked Ocean Tankers

Second interim dividend for Hin Leong Trading’s shipping arm, Ocean Tankers Pte Ltd, is scheduled to be released from 31 July, according to Government Gazette notice.

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June 12, 2026

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RESIZED ocean tankers

A notice of dividend for Ocean Tankers Pte Ltd, the shipping arm of collapsed oil trader Hin Leong Trading that is currently in liquidation, was published in the Government Gazette on June 11.

Ocean Tankers is part of a group of companies which include troubled Hin Leong, Universal Terminal, Tuas Terminal, and Ocean Bunkering Services (OBS).

It was reportedly owned by Lim Oon Kuin, the founder of Hin Leong Trading, and his daughter Lim Huey Ching. 

The following are details of the notice of dividend:

Name of Company : Ocean Tankers (Pte.) Ltd (In Liquidation)
Unique Entity No. / Registration No. : 197800020G
Address of Registered Office : One Raffles Quay, North Tower, Level 18, Singapore 048583
Court : General Division of the High Court of the Republic of Singapore
Number of Matter : HC/CWU 117/2021
Amount per centum : Second interim dividend of 2.00% of all admitted claims of unsecured creditors
When payable : 31 July 2026
Where payable : c/o Ernst & Young LLP, One Raffles Quay, North Tower, Level 18, Singapore 048583 

Related: Singapore: Notice of intended dividend issued for Ocean Tankers Pte Ltd
Related: Hin Leong in debt restructuring exercise; Ocean Tankers a separate entity, says CEO
Related: Ocean Tankers legal team publishes application to be placed under judicial management
Related: Judicial management applications for Hin Leong Trading and Ocean Tankers delayed
Related: Judicial managers of Ocean Tankers discover discrepancies and fraud in exposure claims
Related: Judicial managers of Ocean Tankers to present restructuring proposals to owners

 

Photo credit: Manifold Times
Published: 12 June, 2026

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Winding up

Singapore: Xin Hui Shipping to be wound up voluntarily, creditors to submit claims

Creditors are required on or before 11 July 2026 to send in their names and addresses and particulars of their debts or claims to appointed liquidators, says notice.
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June 12, 2026

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Several resolutions for Xin Hui Shipping Pte Ltd, a subsidiary of the Lim family owned Xihe Holdings Pte Ltd, were made during an extraordinary general meeting held on 3 June, according to a notice in the Government Gazette on Friday (4 July).

The meeting was held at 8 Marina View, #40-04/05, Asia Square Tower 1, Singapore 018960 and by electronic means at 10am. 

The following resolutions were duly passed during the meeting:

SPECIAL RESOLUTION – WINDING-UP

That the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018.

ORDINARY RESOLUTION – APPOINTMENT OF LIQUIDATORS

That Mr. Lau Chin Huat and Mr. Yeo Boon Keong of Technic Inter-Asia Pte Ltd, 50 Havelock Road, #02-767, Singapore 160050 be and are hereby appointed as joint and several liquidators to conduct the said winding-up and that their remuneration be fixed on the usual scale of their professional charges for the work involved.

SPECIAL RESOLUTION – DISTRIBUTION OF ASSETS IN SPECIE

That the liquidators of the Company be authorised to exercise any of their powers given by Section 177, 144 (1) and (2) of the Insolvency, Restructuring and Dissolution Act 2018 and to distribute to members, in specie, any part of the assets of the Company.

In another notice, the liquidators said creditors for the company are required on or before the 11 July 2026 to send in their names and addresses and particulars of their debts or claims, and the names and addresses of their solicitors (if any) to the liquidators. 

Liquidators may also require creditors to, “come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved.”

The liquidator can be contacted at the following address:

Lau Chin Huat
Yeo Boon Keong
Joint and Several Liquidators
c/o Technic Inter-Asia Pte Ltd
50 Havelock Road #02-767 Singapore 160050
Tel: 6561 0398 Fax: 6222 1855
Email: [email protected]

 

Photo credit: steve pb from Pixabay
Published: 12 June, 2026

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