
34
small boats, weak states, dirty money
is confidence was strengthened by the outcome of an IMO confer-
ence convened in Kuala Lumpur in September 2006 at which a number 
of user states, including China, India and the united States, pledged sup-
port for a variety of maritime safety projects for the Malacca Straits such 
as wreck removal, hazardous incident response capacity, a project to dem-
onstrate the feasibility of installing AIS transponders on small ships, navi-
gational aids replacement, and a tide and wind management system.
39
 It 
was suggested before the conference that the littoral states might ask for 
security assistance, but when the measures were announced none, with the 
possible exception of the AIS responder demonstration programme, were 
security related.
40
 Although much of this support was more rhetorical than 
actual, it did appear that progress was made.
41
 e IMO Secretary-General, 
Efthimios Mitropoulos, moreover made it clear that there was no plan to 
make ship owners pay a toll for using the Straits.
42
 Since the conference 
concluded, however, Indonesia has suggested that a special fund should be 
39  Joshua ho, ‘e IMO-KL meeting on the Straits of Malacca and Singapore’, 
IDSS Commentaries, 5 Oct. 2006; Marcus hand, ‘Landmark deal for Malacca 
Strait safety’, Lloyd’s List, 19 Sept. 2006. Since the conference, Malaysian ship 
owners have put forward the view that a voluntary finding arrangement will 
not prove workable and will have to be made mandatory, but without making 
it clear how this could be achieved. Marcus hand, ‘Malaysian owners call for 
mandatory Malacca security funding’, Lloyd’s List, 3 Oct. 2006. 
40  ‘Straits users welcomed to  participate  in  maritime security–Najib’, Bernama.
com, 18 Sept. 2006; ‘31 nations agree to make Malacca Strait safer for naviga-
tion’,  e Star Online, 20  Sept. 2006; ‘Littoral states key to  Malacca safety’, 
Fairplay, 20 Sept. 2006. e push to install AIS Class B transponders on small 
craft continued after the conference closed. Sharidan M. Ali, ‘Reducing risks 
posed by small vessels’, e Star Online, 9 Oct. 2006. 
41  Marcus  hand,  ‘Funding  sought  for  $1000m  Malacca  Strait  safety  projects’, 
Lloyd’s List, 21 Sept. 2006; ‘Steps towards a safer strait’, Lloyd’s List, 26 Sept. 
2006. Some agreements were reached in 2007: Marcus hand, ‘users pledge to 
fund Malacca Strait safety’, Lloyd’s List, 6 Sept. 2007.
42  Marcus hand, ‘No tolls in Malacca Strait for owners–Mitropoulos’, Lloyd’s List, 
20 Sept. 2006. But concerns appear to persist. ‘Owners oppose Malacca levy’, 
Fairplay, 1 Dec. 2006; Marcus hand, ‘Nippon Foundation calls for Malacca 
fund’, Lloyd’s List, 15 March 2007; Marcus hand, ‘Singapore owners demand 
consultation  on  Malacca fund’, Lloyd’s List,  19  March 2007;  Marcus hand, 
‘Shipowners refuse to pay for Strait security’, Lloyd’s List, 13 June 2007. ese 
concerns appeared to have been justified. In Sept. 2007 the IMO’s Mitropoulos 
appeared to adjust his position when he called on ‘all parties’ to consider their 
‘social responsibilities’ and give thought to making ‘voluntary contributions’: 
Chew Wai Yee, ‘IMO calls on industry to fund Strait safety’, Lloyd’s List, 5 Sept. 
2007. See ‘paying to stay safe’, Lloyd’s List, 12 Sept. 2007 for objections to this 
suggestion and its possible implications.