7
Qualitative Insights
In July 2018, in-depth interviews (including site visits) with 8 shipyards in Sibu, Sarawak
were conducted. The discussions were developed in such a way that encouraged open-ended
answers and are categorized into (i) industry outlook and trends, and (ii) workforce issues.
7.1
Industry outlook and trends
Majority of the shipyards agreed that market demand has reduced remarkably in recent years.
Some shipyards had to divert resources to provide ship repair services in order to sustain their
business.
Domestic demand in particular is currently at a low level, which may be exacerbated by the
increasing preference of local ship owners to purchase foreign vessels. This is due to the fact
that foreign vessels tend to be available at cheaper prices and delivered much faster.
At the same time, local shipyards are struggling to generate sales through the export market as
it is highly competitive. Various countries in the APAC region have equal, if not better,
shipbuilding capabilities that may have succeeded in attracting more orders than Malaysian
Environmental Scan – Maritime (Shipbuilding and Ship Repair -SBSR) Sector
43