KUALA LUMPUR: Budget 2027 should consider establishing a formal information-sharing framework that enables offshore support vessels (OSVs) to serve as an additional "third eye” in safeguarding Malaysia’s waters and critical offshore energy infrastructure, said Perdana Petroleum Bhd
.
Managing director Jamalludin Obeng said numerous Malaysian OSVs operate or stand by across offshore oil and gas fields at any given time. They could provide an additional layer of observation over strategic offshore areas.
"These vessels are continuously manned, equipped with marine communication and navigational systems, and are operated by experienced seafarers who understand the offshore environment.
"Crew members may be among the first to observe unusual vessel movements, unauthorised approaches towards offshore installations, marine pollution, navigational hazards, distressed vessels or other abnormal activities around Malaysia’s offshore infrastructure,” he told Bernama.
Jamalludin, who is also a former two-term president of the Malaysia Offshore Support Vessel Owners’ Association, said OSVs should not replace the functions of the Malaysian Maritime Enforcement Agency, Royal Malaysian Navy, Marine Police or other enforcement bodies.
Nevertheless, he said these vessels could become important "eyes and ears at sea” through an appropriate reporting and coordination framework.
He said Budget 2027, which is scheduled to be tabled in Parliament on Oct 9, could establish a Maritime Industry-Government Information and Reporting Framework connecting OSV operators with the relevant maritime and security authorities.
Participation under the framework could include standardised reporting protocols, dedicated communication channels and appropriate training for vessel masters and senior officers to recognise and report maritime security concerns.
"This would allow Malaysia to leverage an existing commercial fleet that is already operating across its offshore waters every day.
"More importantly, Malaysia’s offshore oil and gas installations are critical national assets. OSVs routinely operate around these installations. They, therefore, form part of the broader ecosystem protecting the continuity of Malaysia’s offshore energy production,” he added.
Jamalludin said maintaining a strong, modern and predominantly Malaysian-controlled OSV fleet should be viewed also from national security, energy security and maritime sovereignty perspectives.
Financing and incentives
On fleet rejuvenation, he proposed that Budget 2027 establish a dedicated Maritime Fleet Renewal Financing Scheme supported by government guarantees or development financial institutions such as Bank Pembangunan Malaysia Bhd and Export-Import Bank of Malaysia Bhd.
He said the scheme could provide Malaysian vessel owners with longer financing tenures, competitive interest rates and partial government guarantees to acquire modern vessels, particularly anchor-handling tug supply and dynamic positioning class 2 vessels.
He added that accelerated capital allowances or investment tax allowances could also be provided for new Malaysian-owned vessels with higher technical capabilities, improved fuel efficiency and lower emissions.
"Simplified stamp duty and import or sales tax exemptions on vessel-financing instruments and qualifying marine equipment would further reduce the transaction cost of fleet renewal,” he said.
Jamalludin also proposed reinvestment incentives for companies that dispose of older vessels and reinvest the proceeds in newer vessels.
"This will help accelerate the renewal of Malaysia’s OSV fleet while ensuring that Malaysian companies remain capable of supporting increasingly sophisticated offshore activities,” he said.
On the domestic shipbuilding industry, Jamalludin proposed a shipbuilding competitiveness fund to help Malaysian shipyards invest in automation, digital shipbuilding technology, modern fabrication equipment, engineering capabilities and specialised workforce development.
He said buyers and suppliers’ credit and performance-bond guarantee facilities could enable local shipyards to offer financing terms that are genuinely competitive with foreign bids.
Nevertheless, he stressed that incentives alone will be insufficient as Malaysian shipyards must also remain commercially competitive in pricing, construction schedules, quality assurance and delivery reliability.
Jamalludin also called for accelerated capital allowances, green investment tax allowances, matching grants or soft financing to support the acquisition of lower-emission vessels and the retrofitting of existing vessels.
The incentives could cover fuel-efficient engines, hybrid propulsion and battery systems, energy-management technology and other solutions that could demonstrably reduce fuel consumption and emissions.
He said the incentive framework should be technology-neutral and practical, with an emphasis on measurable reductions in fuel consumption and emissions instead of prescribing a single technology.
Export and Regional Expansion Programme
To support Malaysian OSV operators’ expansion overseas, he proposed a dedicated Maritime Export and Regional Expansion programme involving EXIM Bank Malaysia and other government-backed financing agencies.
Support could include export credit guarantees, working-capital facilities, bid bonds, performance guarantees and competitive vessel financing for Malaysian companies pursuing offshore contracts overseas, he said.
"Malaysia should aim to develop not only strong domestic OSV operators but also regional maritime champions capable of exporting Malaysian offshore expertise, vessels and services internationally,” he added.- Bernama
