Transportation Industry - Shipbuilding & Ship Repair - MIDA | Malaysian Investment Development Authority
EnglishB. MelayuDeutsch日本語简体中文한국어
contrastBtngrayscaleBtn oku-icon

|

plusBtn crossBtn minusBtn

|

This site
is mobile
responsive

sticky-logo

Transportation Industry – Shipbuilding & Ship Repair

Shipbuilding &
Ship Repair

The Small and Medium-Sized Commercial Vessels (SBSR) industry in Malaysia is a pivotal component of the maritime sector, complementing the oil and gas industry. With the ability to construct various types of vessels and provide repair services for larger vessels, Malaysian shipyards play a crucial role. The demand for marine vessels remains stable due to PETRONAS’ extensive production and drilling operations in Malaysian waters. The PETRONAS Activity Outlook 2020-2022 highlights the need for approximately 150 vessels of different sizes to support production, especially for new offshore vessels (OSVs) and replacing older ones.

However, the year 2022 has presented challenges for Malaysian shipyards due to disruptions caused by COVID-19 and the Russia-Ukraine conflict, leading to supply chain disruptions and shortages of skilled personnel. To encourage growth and competitiveness, tax incentives for the SBSR industry have been extended until 2027. Malaysia’s shipyards are well-positioned to capitalise on the growing demand for Liquefied Natural Gas (LNG)-powered vessels as the global shipping industry moves towards more environmentally friendly options. Notably, a strategic collaboration among Malaysian shipyards and a Singapore-based ship designer resulted in the construction of Malaysia’s first green OSV, aligning with the nation’s commitment to achieve net-zero carbon emissions by 2050 and integrate Environmental, Social, and Governance (ESG) principles into the SBSR industry.

5

Projects Approved

RM363 mil

Total Approved Investments
(from entirely Malaysian-owned companies)
in 2022

80%

183

New Job
Opportunities

RM363 mil

Total Approved Investments
(from entirely Malaysian-owned companies)
in 2022

5

Projects Approved

183

New Job
Opportunities

For more statistics, please click here.

99

Registered Shipyards undertaking SBSR activities in Malaysia

31 are located in Peninsular Malaysia and 68 in Sabah and Sarawak.

30,000

Deadweight Tonnage (DWT)

Malaysia has the capability of building vessels up to 30,000 Deadweight Tonnage (DWT).

Government Support

Introduced in 2016, SBSR industry incentives are available for new and existing companies until 2022. New companies can choose between Pioneer Status with 70% Income Tax Exemption for 5 years or a 60% Investment Tax Allowance on qualifying capital expenditures within 5 years. Existing companies can apply for a 60% Investment Tax Allowance on additional qualifying capital expenditures within 5 years.

Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Learn more about the essential forms and guidelines to help you get started on your journey in Malaysia’s manufacturing sector.
Company can submit application and track the application status online via MIDA InvestMalaysia portal at investmalaysia.mida.gov.my
wpChatIcon