SIBU (April 20): Malaysia’s reliance on foreign ships highlights the demand for shipping services, which local industry players can meet with sufficient government support, said Malaysia Shipowners’ Association (Masa) chairman Mohamed Safwan Othman.
He emphasised that one of the key hurdles in realising this potential is the availability of financing, whether through accessible funding or investment opportunities.
“In light of this, Masa, as the chairperson of the Advisory Committee 3 of the National Shipping and Port Council (NSPC), is currently conducting a gap analysis study to highlight the importance of securing financing to support this industry,” he said during the Sarawak and Sabah Shipowners’ Association (SSSA) 45th Anniversary Celebration held here last night.
Mohamed Safwan also disclosed that the rapid growth of this industry has significantly slowed, as evidenced by the stagnation of Malaysian-flagged vessel fleets over the last five years.
To exacerbate the situation, he said the Balance of Payments (BOP) deficit, especially in maritime freight, has been widening, culminating in the most severe recorded deficit in 2022, when Malaysia incurred a staggering RM33 billion in maritime freight imports.
“This clearly shows that Malaysia does not have sufficient resources to support its own economy. Notably, the maritime freight deficit is the largest contributor to Malaysia’s services account deficit by a considerable margin, accounting for almost 17 per cent of total imports.”
Recognising this, Mohamed Safwan said Masa is working closely with the Ministry of Transport, Ministry of Finance and Bank Negara Malaysia to explore strategies for Malaysia to address this issue.
While some individuals may view this data negatively, Masa emphasises that these figures hold promise for the industry, he added
He also stressed that given the current economic uncertainty, Malaysia must be able to compete at the highest level globally, while ensuring protection in the domestic market to enable industry players to grow.
“I firmly believe that Masa and SSSA must continue to collaborate, highlight the significance of this industry to the government and continue to nurture growth, thereby supporting the Malaysian economy.”
Meanwhile, Marine director-general Datuk Dickson Dollah, who was the guest-of-honour, pointed out that SSSA has long been a vital partner to Marine Department Malaysia.
He acknowledged that SSSA’s voices have helped shape policies, improve safety standards, and strengthen the growth of the domestic shipping industry.
In this regard, Dickson emphasised that collaboration is the key to moving forward.
“As we navigate a future shaped by digital transformation and environmental responsibility, your experience and insight will continue to be invaluable.
“Together we can build a maritime sector that is not only stronger but also more sustainable and inclusive for all,” he said.
SSSA chairman Yong Ing Huong revealed that Sarawak has the highest number of shipowners and shipbuilders in the country, significantly contributing to the nation’s gross domestic product.
Among those present were the event’s organising chairman Tang Jung Lung, Dewan Rakyat Deputy Speaker and Lanang MP Alice Lau, Sibu MP Oscar Ling, Association of Marine Industries of Malaysia president Adren Siow, councillors Kevin Lau, Sean Wong and Sibu Chinese Chamber of Commerce and Industry (SCCCI) president Datuk Lau Cheng Kiong.