‘Without bank financing, there is no point talking about trading in Malaysia
KUALA LUMPUR, Oct 17 — Malaysia should develop its own pool of petroleum traders and improve access to trade financing if it wants to establish itself as a regional petroleum trading hub, says Maritime Network Sdn Bhd chief executive officer Datuk Seri Jeyenderan M. Ramasamy.
Drawing on 28 years of trading experience, Jeyenderan said Malaysia needed to build local expertise in petroleum trading, supported by financial institutions and industry players, to compete more effectively in international markets.
He proposed a six-month training programme for master’s and PhD students, comprising two to four sessions a month covering financial management, know-your-customer (KYC) procedures, due diligence and trading risks.
“My dream is to educate them in the proper international way of financial trading. Developing competent traders requires more than knowledge of petroleum markets.
“Traders also need to understand their capital requirements, manage price fluctuations and assess how long they can financially sustain a cargo transaction,” he said.
Jeyenderan, 51, who began trading at the age of 24, stressed that access to financing was another critical factor, as banks and financial institutions provide the facilities traders need to purchase cargoes and meet their commercial obligations.
“Without banks providing financing facilities, there is no point talking about trading in Malaysia,” he said, calling for greater support for Malaysian traders seeking to participate in international petroleum markets.
Sharing his experience, Jeyenderan said Singaporean traders were his main competitors when he entered the bunkering business nearly three decades ago.
He said Malaysia needed to strengthen its own trading capabilities to capture more commercial opportunities linked to its petroleum resources.
“Even small movements in petroleum prices can have a significant financial impact when applied to large cargo volumes, making pricing knowledge, financial discipline and risk management essential.
“To build a pipeline of talent, Maritime Network takes in about five to 10 interns a month, depending on the number of applications, exposing them to shipping operations and industry practices,” he said.
Jeyenderan also said collaboration among universities, industry players, PETRONAS and financial institutions could help develop the expertise and financial capacity needed to expand Malaysia’s role in regional petroleum trading.
He said cultivating local traders was an important step towards positioning Malaysia as a hub where petroleum transactions could be conducted and commercial value generated through stronger domestic participation in international markets.