New Funding Needed for Malaysia's Maritime Sector

Monday, March 12, 2007
The local maritime industry needs additional funding as the New Shipping Financing Fund (NSFF) will soon be exhausted. Total loans dispensed under the RM1 billion NSFF have reached RM914.2 million. The money was used to buy 58 vessels, of which eight were tankers, nine container ships, nine cargo ships, 20 offshore support vessels, 11 tugboats and one barge.

Bank Pembangunan Malaysia Bhd's vice president and head of maritime business development and advisory, Norulhadi Md Sahariff, said the bank provided about RM641 million in loans last year alone because of increased offshore activities and the International Maritime Organisation (IMO) requirement that all single-hull tankers be replaced with double-hull.

In 2001, the Government allocated RM1 billion to further develop the shipping and shipyard industries. The fund was aimed at further stimulating growth of these two industries to transform Malaysia into a maritime nation. The NSFF is managed by Bank Pembangunan, which is owned by the Minister of Finance Inc. This was after a RM1.3 billion fund, the Malaysian Shipping Finance Fund, was given in 1993, which was fully disbursed.

Of the loans approved for the maritime sector from 1999 to 2006, RM1.4 billion was approved for 281 ships. No loans were approved for shipyard and maritime-related activities. Industry players said the sector needs at least another RM2 billion allocation to achieve the objective of making Malaysia a significant maritime nation. Marine Department director-general Captain Ahmad Othman, who spoke at the conference, said the Government is thinking of allocating a further RM300 million to help increase the number of double-hull tankers to carry palm oil out of the country. There is currently a shortage of Malaysian-owned double-hull tankers to transport palm oil. Source: Business Times

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Danish Maritime Days Themes Announced

Four themes at this year’s Danish Maritime Days will highlight some of the most important challenges and opportunities which the global maritime industry is facing, organizers said.

CMA CGM Proceeds with NOL Takeover after China Okay

CMA CGM, the world's third-largest container shipping firm, is to go ahead with its planned acquisition of Singapore's Neptune Orient Lines (NOL) after receiving regulatory clearance from China,

Singapore Exchange in Talks to buy Baltic Exchange

Baltic Exchange privately owned by 380 shareholders. The Singapore Exchange (SGX) is in exclusive talks to buy London's Baltic Exchange, which has been at the

Finance

STX Shipbuilding Likely to Enter Court-lead Restructuring

South Korean shipbuilder STX Offshore & Shipbuilding Co Ltd will likely need to enter court-supervised receivership due to financial difficulties, the firm's lead

Statoil Says Sees European Gas Prices Bottoming Out

Norway's Statoil does not expect European gas prices to fall much further as rising demand from the power generation sector would offset an expected increase in liquefied natural gas (LNG) supply,

Baltic Index Down on Lower Demand for Larger Vessels

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Wednesday hurt by sluggish demand for large vessel sizes.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1227 sec (8 req/sec)