In 2016, Malaysian ship owners purchased 113 vessels worth about RM 36 billion, but only
5.5% was captured by local shipbuilders (45 vessels worth about RM 2 billion) 5 . Out of the
289 vessels registered in Malaysia in 2016, 136 (47%) were locally built. 60% of these 136
locally built vessels were manufactured in Sarawak alone. 6
Source: Marine Department Malaysia, MIGHT
Many shipyards in Malaysia do not possess sufficient capacity and technical capability to carry
out the construction and repair of large, complex vessels. Thus, Malaysian ship owners rely
heavily on foreign shipyards to build and maintain larger vessels. Additionally, costs of
production have increased because of high dependence on imported materials and tools, and
shortage of local designers.
The inability of local shipyards to meet the customers’ “delivery” and “cost” expectations is
believed to be the key factor in the high number of imported vessels. Some overseas financing
institutions and shipyards also offer very attractive financing term, such as 10% upfront
payment and full payment upon delivery versus progress payment requirement by Malaysian
5
6
Clarksons Research, MIGHT
Malaysian Shipbuilding/Ship Repair Industry Report 2017/2018
Environmental Scan – Maritime (Shipbuilding and Ship Repair -SBSR) Sector
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