Shipbuilding & Ship Repair Sector Draws Over RM1 Bln Investments From 2021 To Mid-2025 - MITI
KUALA LUMPUR, Oct 16 (Bernama) -- The shipbuilding and ship repair (SBSR) sector has attracted investments worth over RM1 billion in shipbuilding projects and maintenance, repair and overhaul (MRO) services from 2021 to mid-2025.
The Ministry of Investment, Trade and Industry (MITI) said these investments support activities such as designing, building, repairing, maintaining, converting, and upgrading ships, as well as manufacturing marine equipment.
The export performance in this sector has also shown positive growth with a trade surplus amounting to RM3.37 billion since 2021 to date.
“Malaysia has 110 registered shipyards across the country, with 38 shipyards located in Peninsular Malaysia and 72 in Sabah and Sarawak.
“Based on records from the Malaysian Investment Development Authority (MIDA), there are at least 40 marine equipment manufacturers throughout Malaysia that support the local SBSR supply chain,” the ministry said in a written reply in the Dewan Rakyat today.
The ministry was responding to a question from Datuk Mohd Shahar Abdullah (BN–Paya Besar) regarding the potential involvement of the international maritime-based industry supply chain, which is expected to push the global market to US$195 billion (US$1=RM4.22) by 2030.
Meanwhile, MITI said that to attract investment in shipyard infrastructure, the government has provided tax incentive packages in the form of Income Tax Exemption under the Pioneer Status incentive, which grants 70 per cent exemption on statutory income for five years.
Besides that, there is an Investment Tax Allowance of 60 per cent on qualifying capital expenditure incurred over a five-year period for eligible SBSR companies that meet specified criteria.
Among others, the government also offers the Automation Capital Allowance (Automation CA) to encourage companies to adopt automation and Industry 4.0 technologies in the manufacturing and services sectors.
Automation CA allows companies to claim a tax allowance of 200 per cent or a maximum of RM10 million, on eligible expenditures for the purchase of machines, equipment, and software that can increase productivity and operational efficiency.
“At the same time, the government also offers facilitation for SBSR companies that hold a Manufacturing Licence under the Industrial Coordination Act 1975 to obtain sales and service tax exemptions in the maritime MRO sector, which was implemented in 2024,” it added.
-- BERNAMA