Kuala lumpur: The government should allocate funds to develop and upgrade port reception facilities (PRFs) to enhance environmental compliance under the upcoming Budget 2026, said Hexagon Synergy Group, a pioneer in PRF development in Malaysia.
According to BERNAMA News Agency, Hexagon Synergy Group’s head of sustainability and strategic planning, Dr. Nur Zulaikha Yusof, emphasized that such an initiative would help Malaysia strengthen compliance with international maritime waste conventions, such as the International Convention for the Prevention of Pollution from Ships (MARPOL), while supporting industry competitiveness. Expanding the number and capacity of port reception facilities would ensure that ports and terminals can receive oily waste, garbage, sewage, and other MARPOL waste without delay. By meeting MARPOL’s adequacy standards, Malaysia can avoid violations and protect its waters. Budget support is considered critical as many ports might not invest in costly PRFs independently.
Dr. Zulaikha suggested that government grants or co-financing for PRFs would directly improve compliance and signal to international shipping lines that Malaysian ports are environmentally responsible. This would enhance competitiveness, as shippers increasingly prefer ports that help them meet global green requirements and avoid fines.
In terms of subsidies and fee reforms, Dr. Zulaikha opined that the government could introduce subsidies or fee reconciliation measures via the budget for industry players to reduce their operating costs in complying with waste regulations. For example, the government could subsidize a portion of waste disposal costs or implement a flat environmental fee included in port dues, so ships are not charged extra per volume of waste. The International Maritime Organisation (IMO) and industry bodies recommend fee models that remove cost disincentives for using reception facilities. By adopting these models in Malaysia, potentially through a government-backed fund that reimburses ports or PRF contractors, all ships would be encouraged to offload waste in port rather than risk illegal dumping.
She noted that such measures would uphold MARPOL standards, ensuring compliant companies are not penalized with higher costs. An added benefit is that Malaysian-flagged ships complying with MARPOL would avoid detentions or penalties in foreign ports, thereby improving their international reputation.
Dr. Zulaikha also highlighted the need for capacity building and enforcement funds, stating that strengthening compliance requires robust enforcement. Budget 2026 can allocate funds for training Port State Control officers and marine environmental inspectors, enhancing their ability to inspect ships for MARPOL violations and ensure waste is not discharged at sea. This includes investment in surveillance such as aerial drones or satellite monitoring of illicit discharges in Malaysian waters, and better inter-agency coordination. By improving enforcement capacity, Malaysia can fulfill its duty as a coastal State to prevent pollution in its waters.
She suggested that Budget 2026 can fund a compliance boost through infrastructure, subsidies, and enforcement improvements, aligning Malaysia’s practices with international conventions while maintaining an efficient, attractive maritime sector.
Dr. Zulaikha also emphasized the government’s role via Budget 2026 in allocating resources to multi-stakeholder programs that bring together regulators, port operators, industry players, and researchers to innovate in waste management. In terms of enforcement, the government should align its policies to reward circular practices, perhaps by adjusting procurement policies to favor shippers and logistics providers with strong environment, social, and governance (ESG) records, or by embedding circular economy criteria into port operating licenses.
She noted that through Budget 2026 measures, the government signals that maritime waste management is not merely about compliance, but about opportunity and a chance to innovate and lead in sustainability. This could entail sponsoring research into new technologies, as Action 5 of the Marine Litter Action Plan stresses deploying innovation against marine pollution, and providing seed funding for start-ups that tackle ship waste. By integrating these efforts into national ESG and circular economy agendas, Malaysia can enhance its environmental stewardship while also generating economic value.
Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, is scheduled to table Budget 2026 in Parliament on Oct 10, 2025.