13/10/2026
BUDGET 2027 OPENS THE WAY FOR MORE MALAYSIAN SHIPS, STRONGER LOCAL BUSINESSES AND SKILLED JOBS
Stamp-duty relief addresses longstanding industry concern, with benefits extending across shipbuilding and the maritime supply chain.
The Association of Marine Industries of Malaysia (AMIM) welcomes the maritime measures announced under Belanjawan 2027, seeing an opportunity to turn greater confidence in Malaysian ship ownership into more work for local shipyards, stronger marine businesses and lasting careers for Malaysians. For AMIM, the significance of these measures reaches from the shipowner making an investment decision to the welder on the production floor, the engineer designing a vessel and the local business supplying its equipment.
“Behind every ship is a community of businesses and skilled people. When a Malaysian shipowner has the confidence to invest, we want that confidence to reach our shipyards, our workshops and our young people deciding where to build their future,” said AMIM President Adren Siow.
The extension of full income-tax exemption for qualifying Malaysian shipping companies until the year of assessment 2036 provides a longer planning horizon for an industry whose investments and commitments span decades. AMIM believes a stronger Malaysian shipowning sector can provide the steady demand that local shipbuilders, repair yards and marine service providers need to grow. More consistent orders would help businesses achieve economies of scale, invest in better equipment and develop specialist capabilities.
For maritime micro, small and medium enterprises, this creates a path to becoming larger, more resilient businesses capable of serving both Malaysian and international customers. “Our members know how much it takes to train a good welder, develop an experienced engineer or build a reliable team. A steady pipeline of work gives them a reason to keep investing in those people. It also gives skilled Malaysians a reason to stay and grow with the industry,” Siow said.
AMIM particularly welcomed the announced stamp-duty relief for financing the purchase or construction of Malaysian ships. The issue has been a longstanding priority in the association’s representations to Government, including through the National Shipping and Port Council (NSPC) or now known as Malaysia Maritime Consultative Council (MMCC).
AMIM illustrated the cost using a RM110 million shipbuilding project financed at 90%, or RM99 million. Under the current practice, at the 0.5% financing stamp-duty rate, the loan agreement alone would attract RM495,000 in duty. Under the Budget 2027 proposal, an eligible RM99 million financing agreement would instead fall within the RM2,000 maximum, representing an illustrative saving of RM493,000 on the financing instrument alone. The announced caps apply to qualifying agreements executed from 1 January 2027.
“That is nearly half a million ringgit on one project. For an industry working with tight margins and substantial upfront commitments, that money matters. It can support working capital, equipment and the people needed to deliver a vessel,” Siow said. “We have kept raising this issue because we have seen how additional costs can affect the decision to build and finance a ship in Malaysia. We are very pleased that the Government has responded with this measure, and we thank the ministries and agencies that have listened to the industry.”
AMIM said the financing relief is a meaningful step in improving competitiveness. It will continue to pursue clarity on the separate stamp-duty treatment of shipbuilding contracts, which was also raised in its submission.
The association also welcomed the announced finalisation of Bintulu Port’s transfer to the Sarawak Government. For AMIM’s members in Sarawak, the development carries significance beyond the port itself. Miri and Sibu are home to established shipbuilding communities whose vessels serve customers in Malaysia and overseas. Their capabilities have been built over many years through practical experience, skilled workmanship and relationships with international buyers.
AMIM sees scope for Bintulu’s development to generate wider demand for vessels, repairs, marine engineering and supporting services across the state. Connecting that demand with Sarawak’s existing yards and suppliers would help retain more of the resulting business and employment locally. “Sarawak already has shipbuilders serving the export market. There is experience and capability there that we should build upon. As its ports and industries grow, we want our members and the communities around them to grow alongside that development,” Siow said.
AMIM similarly welcomed the development of Lumut Maritime Industrial City (LuMIC) as an opportunity to build on Lumut’s established maritime capabilities, attract investment and create room for Malaysian suppliers to expand. Links between major investors, local businesses and training institutions would help ensure that the benefits reach the wider industry.
Better roads and access to major ports would complement these efforts by improving the movement of equipment, materials and goods.
The association also supported the maritime TVET initiative involving Akademi Laut Malaysia and Armed Forces personnel transitioning into civilian employment. AMIM encouraged practical training pathways connected to industry needs, including technical opportunities in shipyards and marine services.
“Malaysia has people who can build ships, businesses that can supply them and the ambition to do more. These Budget measures give us an opportunity to bring those strengths together. The result we want to see is more work in Malaysian yards, stronger local companies and skilled careers that people can build their lives around,” Siow said.
