POSITIVE CONTRIBUTION: File photo shows Shin Yang’s shipyard in Miri. The industry has not only given employment to more than 30,000 people but also contributed positively to specialised skills development and technological capabilities such as steel and aluminium welders, composite boat builders, naval architects and maritime engineers.
KUALA LUMPUR: Malaysia is aiming to capture two per cent of the global shipbuilding industry by 2020 from one per cent in 2010, president and chairman of the Association of Marine Industries of Malaysia (Amim) Tan Sri Ahmad Ramli Mohd Nor said yesterday.
Last year, shipbuilding and ship repair in Malaysia contributed about RM7 billion revenue.
“We are being realistic in not aiming to compete for the construction of big container vessels. We want to focus on the niche market of small-and medium- sized vessels of up to 30,000 tonnes,” he told Bernama.
Ahmad Ramli said Malaysia has the right setting conducive for the industry being strategically located along the busy Straits of Melaka and the booming oil and gas operations which employs a lot of vessels.
He said the industry must be given a new drive despite being regarded as a ‘sunset industry’.
“The industry has been seemingly forgotten and is no longer in the limelight.
“The industry has not only given employment to more than 30,000 people, it has also contributed positively to specialised skills development and technological capabilities such as steel and aluminium welders, composite boat builders, naval architects and maritime engineers,” he said.
Ahmad Ramli said the shipbuilding industry in Malaysia had existed since the 1900s.
“The earliest Malaysia’s shipyard was built in Kuching. It evolved from under-the-tree along the Rajang River to a modern purpose-built yard in clusters near Sungai Bidut and Rantau Panjang in Sibu and Kuala Baram in Miri,” he said.
In Peninsular Malaysia, the shipyard clusters are in Lumut, Port Klang, Kemaman and Pasir Gudang, he said. Currently, there are over 80 active shipyards in Malaysia.
Boustead Heavy Industries Corporation Bhd is a leading shipbuilding, ship repair, maritime, engineering and defence-related services provider, with three shipyards in Lumut, Pulau Jerejak and Langkawi. It has strong capabilities in the construction and repair of both naval and commercial ships.
“We have the competitive edge, well educated and skilled workforce and if we do it right, we can make shipbuilding and ship repair industry a real contributor to the economy.
“The potential markets are Middle East, Africa and to some extent Europe. We are already exporting vessels to these countries,” he said.
It was reported that 72 ships were exported ln 2010, out of the 252 newly built vessels by local shipyards. Last year, six ships were exported of the 177 newly built.
Ahmad said the strategy to attain Malaysia’s vision to be a global player is to further improve the supply chain and increase skilled personnel.
“The target is to grow the workforce to 50,000 by 2020. Our target is also to achieve 80 per cent of the new local shipbuilding market,” he said.
Ahmad Ramli said there is also a need to further develop the expertise in this industry, particularly in the software field, and more incentives were needed for the industry.
In other countries, the government has given tax rebates, he said. Based on recent research reports, in 2009, demand for new vessels was at the lowest level due to the global economic crisis.
Global demand for new vessels is expected to grow 26 per cent in the next few years in tandem with global economic recovery. In Malaysia, oil and gas explorations in marginal oilfields will drive demand for vessels in the booming oil and gas sector. — Bernama