Speaking on a recent Bernama TV talk show, Maritime Network Sdn Bhd Chief Executive Officer Datuk Seri Jeyenderan Ramasamy highlighted a growing disconnect in how oil cargo is managed once it leaves the vessel.
PETALING JAYA: Significant gaps between physical cargo handling and official documentation are creating structural vulnerabilities in Malaysia’s petroleum supply chain, potentially leading to substantial revenue leakage.
Speaking on a recent Bernama TV talk show, Maritime Network Sdn Bhd Chief Executive Officer Datuk Seri Jeyenderan Ramasamy highlighted a growing disconnect in how oil cargo is managed once it leaves the vessel.
According to Jeyenderan, the primary issue arises after oil is discharged at ports. While cargo movements appear “clean” on paper, the physical reality in shore tanks tells a different story.
“The gap does not happen at sea; it happens quietly after discharge.
“Once cargo enters shore tanks, it can be stored, blended, or mixed. At that moment, it stops being one defined cargo, yet the system continues to treat it as if it hasn’t changed,” Jeyenderan said.
This leads to a reliance on outdated Certificates of Origin and Certificates of Quality.
While these documents are accurate at the point of initial loading, Jeyenderan revealed that they become merely a “memory of what the cargo used to be” rather than an accurate reflection of its current state after blending.
A major point of concern raised during the session was the treatment of K8 declarations (Customs forms for the movement of goods between licensed warehouses).
A maritime expert with over 30 years of experience, Jeyenderan warned that if these declarations are not updated accurately after cargo is altered in shore tanks, the system allows for significant risk.
“When what you declare no longer reflects what you have, risk enters the system, not necessarily by intent, but because the system allows it,” he said.
He specifically pointed to Tanjung Langsat Port as a critical node where high-intensity activity amplifies the impact of any systemic gaps.
From a national perspective, the financial implications are staggering. Jeyenderan stressed that because the industry handles massive volumes daily, even minor inconsistencies can compound into “very large numbers” in lost revenue.
He described the current challenges as a “signal” of structural vulnerability rather than simple misconduct.
He attributed this to an imbalance between evolving operations and lagging regulations.
“Operations have become faster and more interconnected, but regulation has not always kept pace. Uncertainty lives in that gap,” he added.
To safeguard Malaysia’s petroleum-related revenue, Jeyenderan called for immediate policy reform and clear rules regarding post-discharge documentation.
He argued that accountability must be clearly divided, where regulators are tasked with setting a firm and clear framework, terminal operators are responsible for managing physical processes with total transparency and importers must ensure that all declarations accurately reflect the current state of the cargo.
While acknowledging that digitalised end-to-end tracking would improve transparency, he cautioned that technology is not a “silver bullet.”
Success requires industry-wide alignment, discipline, and a commitment to ensuring that reality matches the documentation.
Jeyenderan also added a reminder for regulators and industry players, stating that the issue transcends mere operations.
“It is about trust. Everything depends on one thing: that what is on paper reflects reality.
“If we lose that, we do not just lose revenue; we lose confidence in the system itself. The question is not whether we should act, but how quickly we are willing to,” he said.
