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 November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Royston Appoints New US Distributor

Diesel power engineering specialist Royston has appoint a new U.S.-based distributor, citing growing interest in its advanced Enginei marine fuel management and monitoring systems.

SSI Hires Holder for US Sales

SSI has hired CAD/CAM specialist Robert Holder as part of its sales force in the U.S. market.    According to SSI, the hiring is intended to meet the expanding

MacGregor Wins Orders for Pusnes Deck Machinery

MacGregor, part of Cargotec, announced it has secured orders for a series of Pusnes deck machinery packages for several shipowners. The Pusnes equipment has been


R-22 Phase-out Presents Dangers and Expense -WSS

The shipping industry is facing price, supply and safety risks in the run-up to the global ban on R-22 (chlorodifluoromethane or HCFC) refrigerant, warns Wilhelmsen Ships Service,

U.S. Ups Philippines Aid as South China Sea Turmoil Builds

The United States has raised its military aid to the Philippines this year to $79 million, the U.S. ambassador said on Wednesday, as tension rises in the region

Asia Fuel Oil-Cracks, Spreads Tight; Bunker Prices Climb

Asia's fuel oil crack for benchmark 180-centistroke rebounded to a discount of $6.79 a barrel on Wednesday, gaining as bunker prices firmed on the possibility of

Maritime Contracts Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators 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: 0.0776 sec (13 req/sec)