PUTRAJAYA: The Transport Ministry will establish the Malaysia Shipping Development Fund (MSDF), a statutory trust created under Act A1551, as a sustainable financing mechanism to support the growth and development of the nation's shipping sector.
In a statement on Thursday (Nov 6), the ministry said the MSDF will enable the development of the local shipping industry, enhance industrial technology and capacity, and grow the maritime workforce in a more structured and sustainable way, without relying entirely on annual government allocations.
"This initiative represents a strategic policy step by the government to drive the competitiveness and capability of the national shipping sector through the development of a more structured and future-oriented domestic industry.
"Through the implementation of the MSDF, Malaysia is expected to reduce dependence on foreign vessels, strengthen the competitiveness of the national shipping sector, and build a sustainable, resilient, and competitive shipping ecosystem to support the country's aspiration of becoming a regional maritime hub," said the statement.
The statement was issued in conjunction with the 1st National Shipping and Port Council (NSPC) Meeting of 2025, which, among others, deliberated on seven policy papers from the government and industry that will become government policies to be implemented in 2026.
Act A1551 (Merchant Shipping (Amendment) Act 2017) seeks to amend the Merchant Shipping Ordinance 1952 and to extend certain provisions of the Ordinance to Sabah and Sarawak, as well as to provide for related matters.
The ministry said the national maritime sector is the linchpin of Malaysia's economic growth, playing a crucial role in trade, with 96.4% of the country's trade conducted through seaborne routes.
The efficiency of Malaysia's maritime ecosystem was evident in 2024, when the nation's trade performance reached RM2.88 trillion in total imports and exports, generating a trade surplus of RM136.88bil, the highest since 1998.
The ministry added that Malaysia, as a member of the International Maritime Organisation (IMO), remains committed to global efforts to reduce carbon emissions (decarbonisation) in the maritime sector.
"In line with the decarbonisation agenda, MOT, in collaboration with Australia, has developed a policy and legal framework on green bunkering to promote the use of low-carbon alternative fuels such as LNG, biofuel, and methanol, in efforts to reduce greenhouse gas emissions from ships and support the maritime industry's transition toward clean and sustainable energy," it said.
The ministry added that it will continue to strengthen the national shipping sector by supporting local shipping companies and empowering the Ship Building and Ship Repair (SBSR) industry, focusing on attracting domestic and international investments.
"The national bunkering sector will also be developed to position Malaysia as a bunkering hub in the Asia-Pacific region by 2030. This includes reforming and streamlining the administrative framework and management of Malaysia's ship registration regime, strengthening national maritime training institutions, and implementing comprehensive reforms to maritime and shipping legislation," it added. - Bernama
