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Overview of the Shipbuilding & Ship Repair (SBSR) Sector
4.1
Industry outlook and trends
Despite the weakening of global merchandise trade since the 2008 financial crisis, it is
estimated that 95% of Malaysia’s international trade is still carried through sea transportation,
owing to its strategic geographical location and growth of well-equipped ports. These factors
have helped to create abundant opportunities for the maritime sector in Malaysia, which has
been identified in the Third Industrial Masterplan (IMP3) as one of the strategic industries that
can transform Malaysia into a developed nation by 2020.
The launch of the Malaysia Shipbuilding and Ship Repair (SBSR) Industry Strategic Plan 2020
has also accelerated the growth of the sector, with the target of generating RM6.35 billion in
Gross National Income and providing 55,500 jobs by 2020.
The SBSR sector plays a strategic role to the nation as it is the catalyst to attract local and
foreign direct investment, spur infrastructure development, promote manufacturing activities
and produce skilled workers. Globally, Malaysia was ranked 24th in the list of nations with the
largest registered fleets (with 621 ships and a combined tonnage of 16,791,296 thousand
DWT), contributing to almost 1% of the world’s total fleet as at end of 2015 1 .
The latest data from Malaysian Industry-Government Group for High Technology (MIGHT)
shows that there are approximately 250 companies involved in the SBSR sector nationwide.
There are currently 99 registered shipyards 2 , of which 31 are in Peninsular Malaysia and 68 in
East Malaysia. The main shipyards in Peninsular Malaysia are in Lumut (Perak), Port Klang
(Selangor), Kemaman (Terengganu) and Pasir Gudang (Johor). As for East Malaysia, Sarawak
leads with total export of vessels worth RM 357.8 million in 2017. Sibu is the shipbuilding hub
in Sarawak, with 42 out of the 68 East Malaysian shipyards.
1
2
Malaysia Investment Performance Report 2016, MIDA
Malaysian Shipbuilding/Ship Repair Industry Report 2017/2018
Environmental Scan – Maritime (Shipbuilding and Ship Repair -SBSR) Sector
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