Recovery for Malaysia's shipping sector is not expected till 2011.
Recovery for Malaysia's shipping sector is not expected till 2011. At the recently held Malaysia Shipowners" Association (MASA) annual dinner, Chairman Nordin Mat Yusoff reiterated the association's call to the government to help local shipping companies tide over the global economic downturn. He said the government's stimulus packages thus far did not specifically address the problems faced by the industry. Last month MASA submitted a memorandum to the government highlighting the effects of the downturn on their industry.
MASA has proposed a shipping fund to help companies with distressed assets, especially those with new ships on order who have problems meeting their contractual obligations with shipyards and banks. MASA has also asked that income tax exemption is extended to offshore supply vessels, dredgers, barges and tugs (excluding harbour tugs) as well.
The association maintains close rapport with the maritime division of the Ministry of Transport. Transport Minister Ong Tee Keat, whose speech was read out by a ministry representative at the event attended by some 800 people, acknowledged that these have been difficult times for the industry. He noted some 140 ships have been laid up in Malaysian waters, many of them being Malaysian registered vessels.