OVERVIEW OF MIDA AND

SHIP BUILDING & SHIP REPAIRING INDUSTRY

Oil & Gas, Maritime and Logistics Services Division,
11 September 2023
Content
01 ABOUT MIDA

THE SHIP BUILDING AND SHIP REPAIRING

02 INDUSTRY IN MALAYSIA

GENERAL INVESTMENT POLICIES &

03 INCENTIVES FOR THE SHIP BUILDING AND
SHIP REPAIRING SECTOR

04 WHY MALAYSIA
 About MIDA

1
“Government's principal
agency for the promotion
of the manufacturing and
services sectors in
Malaysia.”
 MINISTRY OF INVESTMENT, TRADE & INDUSTRY

MITI AGENCIES

STATIONED AT MIDA
Immigration Customs Energy Telecommunication Labour

OTHER SUPPORTING
AGENCIES Finance Construction Health Tourism Safety & Health Digital Economy Environment 4
MIDA Network
20 overseas offices • Beijing
• London Dubai
• Stockholm • Guangzhou
• New York • Munich • Shanghai
• San Jose • Frankfurt • Taipei
Mumbai
• Chicago • Milan Seoul
• Paris
•Tokyo
•Osaka

12 state offices

5
Singapore Sydney 5
MIDA’s Role
Promotion Evaluation and Approval of Project Implementation Compliance Facilitation
(Manufacturing Licence / Tax Incentives/Expatriate Posts
Status Approval)

• Electrical & Electronics • Oil & Gas, Maritime & Industry MIDA Licensing &
Foreign Post -
• Machinery & Metal Logistics Services Talent State Tariff Incentive
Direct Investment
• Building Technology & • Green Technology Management Offices Compliance
Investment Lifestyle • Healthcare, Education
• Transportation Technology & Hospitality
• Chemical & Advanced • Business Services &
Domestic Materials Regional Operations
Direct • Food Technology & • Advanced Technology
Investment Resource Based Industries & R&D
• Life Sciences & Medical Evaluation and Approval
Technology of Customs Duty
Exemption

Manufacturing Services
6
 The Ship Building and

2
Ship Repairing Industry
in Malaysia
Overview of Industry
Ship Building and Ship Repairing Industry in
Malaysia Exports Destination (Jan – Mar 2023)

RM44.6 mil RM22.1 mil RM18.9 mil RM13.8 mil RM6.2 mil

Types & Value of Exported Vessels

(Jan – Mar 2023)

30,000 DWT
30,000 DWT Malaysia’s shipbuilding capability

Tug boat & Cruise ship, cargo Yachts & pleasure/

Pusher craft ship, barges sport vessel
In the list of ownership of world (RM52.6 mil) (RM33.1 mil) (RM31.6 mil)
fleet (ranked by dead-weight
32nd place tonnage, DWT) in 2022.

(Source: UNCTAD, 2022 based on Floating structures Light vessels

data from Clarksons Research) (RM15.8 mil) (RM0.3 mil)
Approved Projects

2011-2021 2022

RM8.45 bil
Total investment
approved

49
No. of projects > 6,300
approved jobs
Industry Status & Capabilities
Average capacity of docking
▪ 300 DWT – 10,000 DWT

Major Players: Largest Travel Lift

▪ 700 tonne (Grade One Marine Shipyard)
• Muhibbah Marine
Engineering Largest Goliath Crane
• Malaysia Marine and Heavy
▪ 600 tonne (MMHE)
Engineering (MMHE)
• Boustead Naval Shipyard Largest Dry Dock
▪ 140,000 DWT & 450,000 DWT
▪ Malaysia Marine and Heavy Engineering (MMHE)
Largest Floating Dock
Major Players:
▪ 13,000 tonne (Shin Yang Shipyard)
• Nam Cheong
• Shin Yang Largest Slipway
Shipyard ▪ 7,000 DWT (BHIC Shipbuilding & Engineering)
• Sabah
Shipyard Largest Rubber Tyred Gantry
▪ Boustead Naval Shipyard
Source: MIGHT, MIDA, AMIM
Shipyards Capability
Ocean Going Tug Accommodation Work
Anchor Handling Tugs Platform Supply Vessel FSV/ Crewboat
(Small/ Standby/ ERRV) Boat, Tankers

•Berjaya Dockyard •Nam Cheong Dockyard •Far East Shipyard • Sarawak Slipways • Muhibbah Marine
•Rajang Maju Shipbuilding •Labuan Shipyard and •Tuong Aik Shipyard • Piasau Slipways Engineering
•Grade One Marine Shipyard Engineering •Eastern Marine • Transform Alliance
•Piasau Slipway •Sealink •Berjaya Dockyard • MSET Shipbuilding
•Sapor Shipbuilding •Shin Yang Shipyard •Kaibuok Shipyard • NGV Tech
Industries •Sarawak Slipways •Sarawak Slipways
•Sealink Shipyard •Yong Choo Kui Shipyard •Nam Cheong
•Shin Yang Shipyard Dockyard
•Muhibbah Marine •Rajang Maju
Engineering Shipbuilding
•MSET Shipyard
3
General Investment
Policies & Incentives
for SBSR Sector
General Investment Policies

Equity of Expatriates
Ownership Employment

Repatriation of Manufacturing
Income License
Incentives for SBSR Sector

PIONEER
NEW COMPANY

INVESTMENT TAX ALLOWANCE

STATUS

60% on qualifying capital expenditure for Income tax exemption of

a period of 5 years. The allowance can 70% of statutory income for a
be offset against 70% of the statutory period of 5 years.
income for each assessment year.

INVESTMENT TAX ALLOWANCE

COMPANY
EXISTING

60% on qualifying capital expenditure for

a period of 5 years. The allowance can
be offset against 70% of the statutory
income for each assessment year.
Other Incentives
ACTIVITY DEFINITION / PROVISION AGENCY

• Marine Products/
Equipment Manufacturing of marine products / equipment MIDA
Manufacturer

i. Annual Industrial Building Allowance (IBA) of 10% for 10 years on qualifying CAPEX for IRB
• SBSR Training building used for approved industrial training, technical or vocational training.
Institution ii. Import duty exemptions on educational equipment for approved training institutes, MIDA
in-house training projects and all private institutions of higher learning.

• SBSR Employee For the manufacturing sector, the training or program could be undertaken in-house or
approved training institution eligible under Income Tax Act 1967. Employer who incurs MOF
Training
expenses for approved training for their employees are eligible for double deduction.

i. Expatriate Post. MIDA

• Others ii. Exemption on raw material, machinery and equipment and consumables (bona-fide). MOF
iii. Automation CA for manufacturing & services MIDA
4
Why
Malaysia
Contact Us
Habibah Binti Enok
Director
Tel: +603-2267 3539
Email: [email protected]
URL: www.mida.gov.my

Business Information Centre

(BIC) at
2nd Floor, MIDA Sentral, KL
Sentral
Opening hours:
Monday - Friday
8.30 a.m - 5.00 p.m