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OFFSHORE support vessel (OSV) operator Perdana Petroleum Bhd has called on the government to introduce targeted capital investment incentives in Budget 2026 to support Malaysia’s marine services sector as it faces rising operational costs and a push towards decarbonisation.
“We need a policy framework that encourages marine service providers to renew their OSV fleet, as the average fleet age now stands at about 14 years. Fleet renewal is vital for the sector’s long-term sustainability,” said managing director Jamalludin Obeng in an interview with Bernama.
He suggested tax incentives such as accelerated capital allowances or targeted reliefs, citing the mismatch between the high cost of new vessels and volatile charter rates.
Jamalludin also supported the introduction of green vessel financing and related initiatives to drive investment in hybrid and low-emission assets, aligning with Malaysia’s target to achieve net-zero emissions by 2050.
“The cost of adopting green or hybrid assets remains a barrier. Incentives would help companies move forward and accelerate industry decarbonisation,” he said.
He added that government-backed financing schemes — co-funded with commercial banks — could ease capital constraints for domestic offshore operators.
On taxation, Jamalludin called for a clearer framework around the Sales and Service Tax (SST) on OSV services, which he said contributes to cost uncertainty.
“While we understand the government’s aim to broaden the tax base, a fairer and more consistent SST regime is needed,” he said.
Perdana Petroleum also urged the government to maintain capital expenditure from Petronas and production sharing contractors, saying this would help ensure revenue visibility and strengthen supply chain resilience.
“Policies that strengthen local participation — including vendor development programmes and stronger local content enforcement — would ensure Malaysian players remain firmly anchored in long-term upstream projects,” he added. October 6, 2025
