Dr Renco Yong
SIBU (Nov 6): Sarawak Association of Marine Industries (Samin) hopes that the Malaysian government will continue supporting the marine industry despite no special allocation for industry players in Budget 2022.
In press statement yesterday, it said the marine industry was the backbone of Malaysia’s economy and crucial to its strategic interests.
“Samin takes note of the various tax incentives, guarantees and funding facilities offered by the government and financial institutions to businesses including small and medium enterprises (SMEs), micro, small and medium enterprises (MSMEs) and start-ups.
“In addition, there is an allocation to develop and enhance human capital especially in TVET-related skills and to encourage businesses to undertake digital transformation.
“However, it is glaring that there is no special allocation or incentives in Budget 2022 for the marine industry,” said Samin president Dr Renco Yong.
He said the marine industry’s importance to the wellbeing of the people and to Malaysia’s trade competitiveness and economic development could not be overemphasised.
He said 95 per cent of the nation’s trade (by volume) is carried by ships and through ports.
“Activities generated from oil and gas which are found offshore contribute 20 per cent to the nation’s GDP.”
A general view of Rantau Panjang shipyards. – Photo via WhatsApp/Dr Renco Yong
Meanwhile, a host of activities such as shipbuilding, ship repair, naval design, marine equipment manufacturing, maritime training and education are essential components of the marine industries, he said.
Given its importance to Malaysia’s economy, it is therefore imperative for the government to continue supporting the growth and development of the industry to ensure that our economy remain globally competitive and strongly integrated in the global supply chain, said Yong.
“We would love to see ‘goodies’ announced in Budget 2022 specifically for marine industry players to encourage their growth, enhance their capacity and human resources, improve their efficiency and productivity and prepare them for a more competitive digital economy,” he said.
Yong said the marine industry was vital to Sarawak’s resource-rich and commodities-dependent economy and would generate tremendous multiplier effects in terms of economic growth, employment, skills development and investment.
“Shipping – sea-based and riverine – facilitates much of the transportation of commodities produced in Sarawak to the markets and the distribution of cargos into and across the state.
“As such, the support of the federal and state governments in the form of incentives and favourable policies is crucial in helping industry players to grow and become competitive nationally and internationally,” he said.
He also said that Covid-19 pandemic had severely affected the business of marine industry players in Sarawak including Samin members, due to the economic downturn, movement control order (MCO) and social distancing requirements to curb the pandemic.
Many, he said, were barely surviving and were even at the throes of bankruptcy as the marine industry was hit hard by the pandemic.
He added the marine industry players were hopeful that the government would provide stronger policy push to help them stay on their feet during these challenging times through financial incentives, tax breaks, protection through the Cabotage Policy, institutional support and other means of policy intervention.
Samin, he added, shared its ‘wishlist’ for future budget with incentives on top of the list of incentives it would like to see offered to shipyards.
It also hoped the federal government would continue to support the state government to ensure projects already in the pipeline are completed.
These include the Tanjung Manis Marine Engineering Park in Paloh which has been earmarked under the 12th Malaysia Plan and the upgrading of Rantau Panjang Shipbuilding Industrial Area, he said.
from Borneo Post Online https://bit.ly/3mQR41M
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