Shipowners hope for tax rebates and grants under Budget 2022


Malaysian shipowners association Abdul Hak Md Aamin

KUALA LUMPUR: The Malaysia Shipowners’ Association (Masa) hopes that Budget 2022 will provide financial assistance for the shipping industry and tax rebates for vessels built in local shipyards.

It also hopes for grants to comply with the International Maritime Organisation regulations on marine engines (IMO 2020) and for high technology and environmentally friendly marine projects such as alternative marine fuel.

Masa chairman Datuk Abdul Hak Md Amin said the Covid-19 pandemic has affected the maritime and shipping industries and many shipping companies are facing financial difficulties.

He told Bernama that given the current state of the shipping industry, adequate financing funds and facilities must be in place, with a focus on financial assistance to existing shipowners struggling for survival.“I would like to emphasise the importance of allowing other commercial banks to manage the maritime and logistics fund, which is currently managed by Bank Pembangunan Malaysia Bhd, and this is also due to the lack of progress in fund disbursement,” he said.

The maritime and logistics development scheme, which was introduced in Budget 2021 and extended until Dec 31, 2023, is expected to aid in the development of seaports and maritime infrastructure.

Abdul Hak emphasised that the industry needs a competitive financing rate for the shipping industry to be at the same level of playing field with other countries like Singapore, Japan, South Korea and China.

The industry is hopeful for tax relief for vessels built in local shipyards, as well as grants or incentives for high-tech and environmentally-friendly marine projects, such as alternative marine fuel, to comply with the IMO 2020, which mandated a maximum sulphur content of 0.5% in marine fuels globally.

He also proposed that the Danajamin Prihatin guarantee scheme be allowed to support Malaysian shipowners.

Malaysia’s shipping industry is a major contributor to the economy as 90% of the country’s trade is from the sea.

To support the industry’s recovery post-Covid-19, government-linked companies should give more opportunities to local players to participate in their trade activities by using local ships and containing the outflow of funds due to less participation from local shipping players. according to him.

“The exports of palm oil is dominated by foreign ships.

“The government should consider introducing a policy for resident Malaysian companies to export using Malaysian vessels to reduce the balance of payment deficit and, simultaneously, give a chance to our local shipping industry to develop and improve their level of competitiveness,” he added.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Business News

Bank Negara's international reserves rise to US$109.7bil as at Nov 30
CIMB launches sustainability-linked Treasury programme with pioneering clients Farm Fresh and Sunway
India central bank raises key rate, says inflation battle not over
Taiwan seeks to reassure on TSMC commitment to island despite US investment
Oil edges up on China demand hopes; Russian uncertainty weighs
Banks bounce higher to lead FBM KLCI into positive territory
Apple overhauls App Store pricing to range from US$0.29 to US$10,000
CGS-CIMB: More clarity needed on larger-value projects in Budget 2023
Super rich folks in wealth hubs, including S’pore, still have their eyes on crypto
PETRONAS Carigali discovers oil at Block SK306, off Sarawak coast

Others Also Read