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On a little ship called, "Singapore".

Wednesday, April 18, 2007

Bypassing Singapore

Malaysia is planning to build a 312 km oil pipeline to short cut travel through the piracy-prone Malacca Straits (Straits Times, 17 April). The pipeline would save about 2,000 km in travel. The plan is to build an oil refinery on the west coast of Kedah where crude oil would be received and refined, and then sent over the pipeline to the Kelantan coast where the oil will be distributed to other countries, notably China, which has an insatiable appetite for fuel as it develops.



Meanwhile, in another report (ST 17 April also), NTU researchers found that piracy attacks in the Malacca Straits have hit a 10-year low.



So... no need to build oil pipeline that would bypass Singapore, or refinery to take business from Singapore.



This is the Kra canal threat in another form.



Hmmm.... threat of pirate or terrorist attack on shipping, particularly oil tankers in the Malacca Straits, or threat of terrorist attack on oil refinery or a 312 km static pipeline? At least the oil tankers are a moving target, no?



Then again, Northern Malaysia borders Southern Thailand where there have been a lot of unrest. Again, a security issue.



And didn't Malaysia lose like million dollar shipment of Intel Chips in Penang to some daring robbers?



Then again, maybe it's best to spread the risk about. Maybe the terrorist will see Malaysian refineries and oil pipelines to be an easier target than Singapore's oil refineries and bunkers.





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