Malaysia seeks to become regional petroleum trading hub

Malaysia needs to strengthen its local petroleum trading capabilities to realize its ambition of becoming a regional petroleum trading hub. Industry expert Jeyenderan M Ramasamy, CEO of Maritime Network Sdn. Bhd., emphasized that access to financing and specialized industrial training are critical for local traders to compete in international markets.

Financial institutions play a vital role, as petroleum trading requires significant capital for cargo purchases and meeting commercial obligations. Without adequate banking facilities, the potential for trading growth remains limited. Additionally, traders must master international financing, capital management, and the risks associated with petroleum price volatility, where even minor fluctuations can lead to substantial gains or losses on large cargo volumes.

To address these needs, a proposed six-month training program for postgraduate students would cover financial management, Know Your Customer (KYC) procedures, due diligence, and trade risk management. Jeyenderan suggested that collaboration between universities, industry players, Petronas, and financial institutions is essential to developing a highly skilled local workforce.