Rm500mil fund proposed for shipbuilding, repair sector
KUALA LUMPUR: The Malaysian IndustryGovernment Group for High Technology (Might) is proposing to the Government for an instant funding to the tune of RM500mil to be allocated for Might’s high-tech sector’s growth, shipbuilding and ship repair.
Might president and chief executive officer Mohd Yusoff Sulaiman said the revolving fund would be channelled through venture fund institutions for distribution to local companies keen to enter Might’s high-tech sector. “Might will be the manager of the fund. The RM500mil fund size will be the initial fund injection. We’re looking at increasing the fund size when the need arises,” he told Bernama.
Mohd Yusoff said the fund is to support small and medium-scale enterprises, with direct funds to support new businesses.
He said currently Bank Pembangunan had been providing funds for shipowners to own vessels. “By increasing vessels ownership, this will ultimately increase services for ship repair and shipbuilding,” he said.
Mohd Yusoff said the industry, regarded as a sunset industry as it was left out of the limelight in recent years, needs a further boost from the industry and the Government.
“It’s not in the recent promoted list of activities and products eligible for pioneer status and Investment Tax Allowance, which took effect from January 2011,” he said
Mohd Yusoff said there was a lot of potential in this industry and Malaysia had the capability as processes within other industries such as aerospace and automotive can be applied to the shipbuilding industry.
“Two cranes on top of the Freedom Tower, one of the highest buildings in New York City is actually built by Favelle Favco, the crane division of the Malaysian shipbuilder, Muhibbah Engineering,” he said.
Thus, he said, Malaysian shipbuilders should be given more “visibility” as they are capable to be major global players.