● growing the “ ocean economy ” needs to be done in a responsible way because oceans are already under stress ;
● forward looking ( to 2030 ) at the ocean economy : establishing ocean sectors ( shipping , shipbuilding , fisheries , traditional ocean and coastal tourism , ports ) and emerging ocean-based sectors ( off-shore wind , off-shore oil & gas , ocean energy , marine biology , cruise tourism , aquaculture , sea-bed mining , ocean monitoring ); and
● focusing on contribution as potential sources of economic growth and employment creation , required scientific and technological breakthroughs , investment needs , funding and business models , skills , environmental implications , avenues for policy action .
Malaysia is essentially a maritime nation , at least from the standpoint of a land mass surrounded by sea . The economic importance of the sea to Malaysia lies in the activities that are generated using the sea as an intermediary and the living and non-living resources above and in the seas and under the seabed . The nation lies in the middle of two of the world ’ s busiest and most strategic shipping and seaborne energy trade routes , namely the Straits of Malacca and the South China Sea .
The oil and gas and energy sector is the mainstay of the nation ’ s economy and contributes 20 % of the national GDP . The riches of its offshore oil and gas sites have made Malaysia a centre for deep water exploration and production in South East Asia . The fisheries sector is also an important economic sector by way of its 16 % contribution to the nation ’ s GDP . The shipbuilding and ship repair sector is a potential key contributor to the nation ’ s economy , generating RM7.05 billion and employing about 20,000 people . However its overall contribution to the country ’ s GDP is about 1.5 %.
That was and still is the scenario . We have yet to see a tangible development of the industry and the contributions it can generate for the total spectrum of the value chain . This lackadaisical performance has generated criticisms on the overall existential structure of the maritime industry .
MISSING THE BOAT
The shipbuilding / ship repair ( SBSR ) industry has been specifically identified in the Third Industrial Master Plan ( IMP3 ) as an industry which can contribute to the country ’ s wealth from the transportation sector . In view of its great potential , the first roadmap for the SBSR industry , titled ‘ Malaysian Shipbuilding / Ship Repair Industry Strategic Plan 2020 ’ ( SBSR 2020 ), was launched on December 6 , 2011 to chart the way forward for the industry .
Within the SBSR 2020 report , seven key strategies with 40 recommended actions were outlined with the objectives of :
● capturing 80 % of the local new build market ;
● capturing 2 % of the global new build market ;
● capturing 3 % of the market for repairing vessels plying the Straits of Melaka ;
● capturing 80 % of the South China Sea offshore repair market ; and
● focusing development initiatives in niche markets involving vessels shorter than 120m in length .
Ironically , while ranting on the strategies , the SBSR industry have failed miserably . We have not been able to capture the opportunities presented to us for some strange reason . We are strategically located right smack on the world ’ s busiest sea lanes and yet we have not been able to benefit from this huge vantage point . Putting aside the commercial shipbuilding cake , the ship repair opportunities have also been passing through our fingers and are being captured enthusiastically by our neighbour .
We procure a tremendous amount of assets annually for our enforcement agencies , but the industry is still not able to form a strong industrial base . Our grasp on technology is arguably still primary and basic . Shipbuilding and repair is almost a clandestine industry surreptitiously operating by night .
The seven strategies that have been identified , which among others include strengthening the institutional framework , establishing business friendly policies that support the growth of the industry and reinforcing regulatory frameworks to assure the integrity of SBSR companies and the quality of their products , do not seem to produce
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