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KUALA LUMPUR – The RM1 billion Maritime and Logistics Scheme announced in Budget 2023 on Friday is an excellent first step toward boosting the maritime industry’s growth, but more needs to be done to accelerate the industry’s transition to green shipping, according to the Malaysia Shipowners’ Association (Masa).
“We are glad that the government is still allocating funds to the maritime industry.
“However, we believe it somehow falls rather short, as the industry needs more funds to start our journey towards green shipping as per the International Maritime Organisation’s ambition,” said chairman Mohamed Safwan Othman.
Safwan emphasised that the importance of pushing for green shipping is comparable to Malaysia’s focus on sustainable development and green technology, which received substantial budget allocations for 2023.
Budget 2023, presented by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, has reaffirmed the government’s commitment to green technology, enhancing the Green Technology Financing Scheme by increasing the guarantee value to RM3 billion until 2025 and expanding the scope of financing to include the electric vehicle sector with a 60% guarantee limit.
“The distribution of the (maritime and logistics) fund is of the utmost importance, as the majority of industry participants are still in limbo about the fund mechanism and fund utilisation rate,” he explained, adding that it is worth mentioning that the fund’s value was reduced to RM1 billion for (2021-2023) from RM1.5 billion allocated for 2018-2020.
The Maritime Development and Logistics Scheme aims to revitalise and revive the shipping industry.
In tabling Budget 2023 yesterday, Tengku Zafrul said the RM1 billion scheme’s scope has been expanded to support oil and gas, shipbuilding, and ship repair.
Budget 2021, tabled in November 2020, extended the Maritime Development and Logistics Scheme, Sustainable Development Financing Scheme, Tourism Infrastructure Scheme and Public Transport Fund until December 31, 2023, with a fund size of RM3.7 billion.
Meanwhile, in 2019, the government relaunched the RM1.5 billion Maritime Fund through Bank Pembangunan Malaysia Bhd aimed at modernising the country’s maritime sector. – Bernama, October 10, 2022