The Malaysian Investment Development Authority (MIDA), the government organization responsible for promoting foreign direct investment, announced that Malaysia has established a goal to become an Asian center for shipbuilding and ship repair (SBSR). The SBSR industry is expected to gain more investments and enhance its capabilities, with the extension of tax incentives and import duty exemptions until December 31, 2027.
The Malaysian SBSR industry will be developed within a dynamic ecosystem where various stakeholders collaborate to design, build, maintain, and upgrade vessels. This integrated network forms the foundation for resilience and growth by utilizing intelligent solutions, seamless technology, and industry 4.0 innovations to construct modern and environmentally sustainable vessels. At present, the domestic (SBSR) sub-sector encompasses companies that manufacture seagoing vessels and marine equipment, as well as providers of related services including ship repair, design, upgrade/ conversion of vessels and maintenance, repair and overhaul (MRO).
From 1985 to 2022, Malaysia approved a total of 131 projects in the aerospace industry, attracting investments worth MYR 16.7 billion (USD 3.61 billion). These measures reflect the government’s commitment to supporting the maritime industry and establishing Malaysia as the premier SBSR hub. In 2022, MIDA stated that the local SBSR sector drew investments totaling MYR 363 million (USD 78.7 million) from five projects, an increase of 451.7% from the previous year. These initiatives are anticipated to increase employment possibilities, boost the industry’s expansion, and advance Malaysia’s economy.
(Sources: Malaysian Investment Development Authority – MIDA; Business Today)