Awang Tengah (second right) officiates at the event while (from second left) Julaihi and Saidol look on.
SIBU: The government wants the shipbuilding and ship repair (SBSR) industry in Sarawak to be developed in order to create a name for the state.
Second Minister of Resource Planning and Environment Datuk Amar Awang Tengah Ali Hassan mentioned this at the opening of the SBSR seminar at RH Hotel here yesterday.
Stating that SBSR had huge a potential, he said it had been identified as a new growth industry under the 11th Malaysia Plan.
In view of such potential, he revealed that the federal government launched the Strategic Plan 2020 for SBSR in 2011 as a roadmap to make Malaysia a leading nation in shipbuilding in the global arena.
According to him, the Malaysian Industry-Government Group of High Technology (MIGHT) study showed that in 2013 alone, shipbuilding and ship repair industry generated revenue of RM7.1 billion,
in which 189 companies were involved.
He said the companies generated export value of RM1 billion and created 35,000 jobs.
For Sarawak alone, the SBSR industry generated revenue of RM2.83 billion in 2013 and succeeded in creating more business and employment opportunities for the local people, he added.
He further said Sarawak exported 70 per cent of the ships manufactured, with the remaining for the local market.
Ships manufactured in Malaysia are exported to neighbouring countries such as Singapore, Indonesia, Myanmar, Thailand, the Philippines and Brunei.
“Today, shipbuilding in Sarawak has reached an international standard that many countries such as the United Arab Emirates (UAE), America, the United Kingdom, Australia, Japan and Singapore are also buying from Sarawak.
“According to MIGHT, the industry has great potential in Sarawak, especially in serving the oil and gas sector,” he pointed out.
The minister also pointed out that the state government had designated areas such as Kuala Baram industrial area in Miri, Tanjung Manis and Rantau Panjang, Sibu for companies to carry out shipbuilding and ship repair activities.
Awang Tengah, who is also the Minister of Public Utilities and Minister of Industrial Development, said the government had always been concerned with the needs of entrepreneurs in Sibu, including the SBSR entrepreneurs.
“Hence, under the 11th Malaysia Plan, the state government has approved allocation of RM79.9 million to develop a 61-hectare industrial estate in Sungai Bidut, Sibu,” he disclosed.
He also said the state government had requested for funds from the federal government to develop the Rantau Panjang Industrial Estate Phase II and for upgrading works on the Rantau Panjang Industrial Estate Phase I.
In addition, under the 11th Malaysia Plan, the state government had also proposed a new area for shipbuilding industry in Paloh, he said further.
“However, this industry must be private sector industry.
“The role of the government in this industry is to sustain and expand it. And, the participation from the private sector should be the backbone in sustaining and expanding this industry,” he pointed out.
He also revealed that the state government had requested the federal government to review the tax incentives for SBSR in Sarawak to enable it to expand.
“Offshore oil and gas industry plays an important role in the economy of Sarawak.
“Currently, the oil and gas industry contributes approximately 15 per cent to the nation’s GDP and is expected to contribute 20 per cent to the nation’s economy and RM61.2 billion of Gross National Income (GNI) by 2020.
“However, the recent slump in the oil prices, the slowing down of global economy and the weakening of our Ringgit poses challenging situations to us as we need to buy imported items with higher prices, but at the same time, we can also take advantage despite the weakening of our Ringgit; it can help in our export as we can export more,” he said.
Despite that, Awang Tengah expressed confidence in the entrepreneurship spirit of SBSR players and their desire to improve products and services with new technology.
“I am very confident that you can sustain and expand your businesses,” he said.
According to him, Petronas has agreed to allocate RM2.1 billion as the baseline for Sarawak contractors in the gas and oil industry which can benefit the SBSR industry.
“There will always be a corresponding demand for all manners of marine services including shipbuilding and ship repair services in supporting the exploration, production and transportation of offshore oil and gas.
“Therefore, industry players in the SBSR industry are urged to be more innovative and adopt modern technologies in order to compete globally,” he said.
With the Chief Minister’s aspiration to see the people participate in the development of oil and gas industry, he believed SBSR would grow and develop.
“This will be our chance. We must take this opportunity to ensure that this industry will grow and develop,” he stressed.
Assistant Minister of Industrial Development (Investment and Promotion) Datuk Julaihi Narawi, chief political secretary to the chief minister Abdullah Saidol, Nangka assemblyman Dr Annuar Rapaee, Jemoreng assemblyman Abu Seman Jahwie, Balingian assemblyman Yussibnosh Balo, Sibu Resident Sim Kok Kee and Kuching Port Authority chairman Awang Bemee Awang Ali Basah were present.