Revolving Fund provide cash advance to the three littoral States of the Malacca and Singapore Straits (i.e. Indonesia, Malaysia and Singapore) for use in combating oil pollution caused by ships. The amount used will be repaid to the Fund when the State recovers the clean-up costs from the parties responsible. In its history since establishment , the Revolving Fund has been used twice: In October 1992, both Indonesia and Malaysia tapped on the Revolving Fund to combat the oil spill from the Nagasaki Spirit. The incident occurred in the Northern part of the Malacca Strait. In October 2000, Indonesia used the Revolving Fund to clean up the oil spill from the Natuna Sea. The incident occurred near Tanjung Pinang, Indonesia.

Each State has full capabilities in terms of manpower and equipment to combat oil spills within its own territory. However, in the event of a major oil spill threatening the region, coordination and cooperation between the three littoral states always in the top priority.