The large amount of vessels or ships that passes through the Straits of Malacca for international trade and transportation of oil had attract the maritime threat especially piracy and maritime terrorism. This is proved when the rate of piracy and maritime terrorism was in a worrisome level. Meanwhile, as for the maritime terrorism, the existence of extreme perpetrators of acts of maritime terrorism such as Abu Sayyaf Group, Al-Qaeda and its Southeast Asian wing, the Jemaah Islamiyah and the Moro Islamic Liberation Front had terrorized many vessel passing through the Straits of Malacca. This problem considered serious as the Straits of Malacca is one of the most important waterways in the world for international trade and linkage between one country to another country. Thus, any disruption to the flow of vessel on the sea lanes due to collision, sinking of vessel or any maritime threat such as pirate attack and maritime terrorism that may cause closure of the straits would be a disastrous for the global economy and will cause losses to the other country that heavily depends on this straits to obtain the supply of fuel oil and raw material. Therefore this study will determine mechanism used by Malaysian government to deal with piracy and maritime terrorism on the Straits of Malacca and the challenges faced by them while they are securing the Straits. By looking onto the mechanism and challenges, it may help in identifying new alternative to address the threats more effectively and efficiently. The methodology that are used in this research is content analysis whereby the method to obtain data is through interview as primary sources and other sources such as government document, journal and newspaper as secondary sources. The research also argues that a number of new legal and practical approaches could also help in combating piracy and maritime terrorism, namely strengthening government policy and legal framework in addressing piracy and maritime terrorism, encouragement of burden sharing principal in maintaining the safety and security of navigation on Straits of Malacca.
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