‘Shipbuilding regarded as a key contributor to Sarawak’s economy

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Malcolm (front, third left) and SSA president Ngieng Ping Sing on his left jointly lead the cake-cutting ceremony. Also seen are Sibu MP Oscar Ling (left) and Sibu Resident Charles Siaw (second right).

SIBU: The shipbuilding and ship repairs (SBSR) industry has been contributing significantly to Sarawak’s economy and trade.

Citing statistics, Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said the industry generated RM357 million worth of exports in 2017, and RM279 million last year, exporting many vessel types including to Indonesia, Australia, Singapore and the United Arab Emirates (UAE).

“This is a testament of the high skills and capabilities of our local shipbuilders,” he pointed out in his address at Sibu Shipyards Association (SSA)’s 45th anniversary dinner held in a hotel here on Saturday.

His text-of-speech was read by Assistant Minister of International Trade and Industry, Industrial Terminal and Entrepreneur Development, Malcolm Mussen Lamoh.

Awang Tengah, who is also Minister of International Trade and Industry, Industrial Terminal and Entrepreneur Development, said the history of SBSR began with the establishment of Brooke Dockyard in 1912 by the White Rajah of Sarawak.

In the 1930s, the shipbuilding industry kicked off in Sibu, building motor launches for riverine and costal navigation as well as constructing vessels to support the timber industry.

“Later, more sophisticated vessels were built for the offshore and gas activities in Sarawak. In 1974, the SSA was established, consisting of seven shipyards that operated in Sibu.

“Currently, Malaysia has about 100 shipyards nationwide – 60 of which are located in Sarawak,” he said, pointing out that out of these 60 shipyards, 40 are operating in Sibu area.

“They are specialising in building and repairing small to medium-sized vessels such as tugboats, offshore support vessels (OSVs), barges, anchor handlers and passenger boats.”

Awang Tengah said with all these considered, Sibu could rightly claim to be the ‘heartland of the shipbuilding and ship repairs industry in Malaysia’.

“I am confident that the SBSR industry in Sibu will continue to play a vital role in the economic development of Sarawak. The SSA has become the link between the shipbuilding industry players and government agencies, especially my ministry, the Miti (Federal Ministry of International Trade and Industry) and Mida (Malaysian Investment Development Authority).

“Together with SSA, my ministry has completed the Rantau Panjang Phase 1 upgrading works costing RM11.7 million. Additionally, a tender has been called for the proposed Sibu Industrial Estate development covering an area of 150 acres,” he added.

Awang Tengah also commended SSA for being very active in market promotion by holding overseas missions to China, Taiwan, Indonesia, Singapore, the UAE and Germany.

“This is a good sign – the shipbuilding industry is making efforts to expand into international markets,” he said, adding that his ministry would continue to support the SBSR industry in expanding its market reach through participation in expositions such as the Malaysia International Maritime Exhibition (Mimex), Sarawak-Singapore Business Forum and Expo 2019, China International Import Expo (CIIE) Shanghai and Sarawak Export 2019.

He also disclosed that his ministry would host the Marine Technology Symposium in Miri this Nov 27.

“Participating in expos is a good way to promote our shipbuilding capabilities, but our shipbuilders must also keep themselves abreast with the latest information in the industry such as policies, incentives and technology.

“The SBSR industry should further explore manufacturing solutions offered under Industry 4.O such as automation, robotics, IOT (Internet of Things) and artificial intelligence (AI) for production and operational technology advancement for cost-competitiveness, especially in this challenging environment so that they could become world class players in the industry,” said Awang Tengah.

Later, Malcolm announced a grant of RM20,000 from Awang Tengah for SSA, and he (Malcolm) himself contributed another RM10,000 for the association.