Malaysia says Malacca Strait is not a war zone

THE Malaysian government has expressed its disappointment over London-based shipping insurer, Lloyd's, recent decision to retain its "war-risk" rating on the Malacca Strait, which means that container ships will continue to pay additional premiums to traverse the strait, the nation's newswire Bernama reported.

The war-risk rating means that container vessels may have to pay up to US$5,000 extra for each trip through the strait.

Malaysia's Deputy Prime Minister, Datuk Sri Najib Tun Razak, said the rating was unjustified as there had been no reports of piracy in the strait recently.

According to Bernama the shipping insurer first added the Malacca Strait to its list of 20 potential risk zones last June.

The list is compiled of countries or areas that are viewed as being prone to war, strikes, terrorism and other forms of violence or general instability.

Over the past two years Malaysia has been working together with its neighbours, Singapore and Indonesia, conducting joint air and sea patrols in a bid to rid the region of piracy.