Govt to launch insurance plan for ship owners

  • Nation
  • Tuesday, 02 Jun 2015

PUTRAJAYA: Good news for local small ship owners.

The Government will launch the Malaysia Protection and Indemnity (P&I) Club for ships below 300 gross tonnes before the end of the year.

Transport Minister Datuk Seri Liow Tiong Lai (pic) said the insurance would cover a wide range of liabilities including death, personal injury, property damages and wreck removal.

“Even the abandonment of seafarers is covered,” he said when launching the Malaysian Shipowners’ Association (Masa’s) new office at Precinct 8 on Tuesday.

Liow said he was coordinating with the Finance Ministry for a startup grant of RM4mil for the club.

“This will enable the Malaysia P&I Club to offer an affordable and competitive insurance premium to small ship owners involving third party liabilities,” he said.

Liow added that the ministry was also preparing a comprehensive paper to support the appeal for a 100% tax exemption for shipping companies to be retained.

“We must justify why the 100% tax exemption should be stay and its correlation with the Malaysian shipping in the global market.

“The retention of the 100% tax is also crucial for Malaysian shipping to be competitive and sustainable in this hugely competitive world shipping market,” he said.

In the 2012 Budget, the Government planned to reduce the tax exemption from 100% to 70% of their statutory income.

However, the Government deferred the plan until this year following the appeal by the Transport Ministry and Masa.

Liow also said with Malaysia’s shipping industry not being spared from the global economic slowdown as well as world financial crisis, shipowners should focus on developing maritime human capital.

“It could be through up­skilling and re­skilling to enhance efficiency, effectiveness, competitiveness and productivity of maritime’s most invaluable resource, its people.

“When the market rises again, those who are best prepared with the assets, capacity and personnel will be the first to reap the benefit of the recovery in global economy and sea borne trade,” he said.

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