Decision Strategies for Boosting Maritime Economy in Malaysia Due to The Opening of Northern Sea Route

Abstract

The opening of Northern Sea Route (NSR) as an alternative route for transporting cargoes between Far East and Europe seems highly acceptable by shipping companies due to the great saving in fuel consumption, bunker cost, operating cost, emissions and journey time. It has been proved that the foreign ship calling statistics at Malaysian main ports (Port Klang, Port of Tanjung Pelepas and Johor Port) have significantly reduced for the last three years that leads to the possibility of losing the profit margin. This situation will affect the maritime activities in Malacca Straits and the Malaysian economy as a whole. In order to strengthen the maritime economy, decision strategies are required for enhancing the port development and maritime activities in Malaysia. Therefore, the main objective of this study is to propose a comprehensive maritime economy framework using a business analytics method. This method enables to deal with uncertainty of changes in the shipping activity at Malacca Strait. The findings are comprehensive maritime economic frameworks and five strategies have been recommended as possible solution to the studied issue. Such findings can be used by the maritime players' decision makers (corporate and government sectors) for boosting maritime economy in Malaysia.