Accra:Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced an extension of the full income tax exemption for Malaysian shipping companies until the year of assessment 2036 during his presentation of Budget 2027 in the Dewan Rakyat. This budget, themed 'Reaching for the Skies, While Anchored On Our Values', also introduced fixed stamp duty rates on loans for purchasing or constructing Malaysian vessels.

According to BERNAMA News Agency, the stamp duty rates are set at RM2,000 for loans up to RM100 million and RM5,000 for loans exceeding RM100 million. These incentives are designed to support Malaysian shipowners by easing financing constraints, especially those experiencing stringent collateral requirements and mismatches between loan tenures and ships' useful lives.

Maritime analyst Nazery Khalid highlighted that these measures could significantly lower ship financing costs, particularly for locally built vessels. This could foster the development of domestic shipping capacity, especially in key sectors such as energy, bulk commodities, and container shipping, thus helping to cater to Malaysia's increasing trade volumes and economic growth.

Nazery also noted that the incentives might reduce Malaysia's reliance on foreign vessels, limit foreign exchange outflows, and fulfill longstanding local shipowners' requests for more supportive financing conditions. Additionally, they could help smaller shipping companies accelerate digitalization to remain competitive amid global supply chain shifts and rising energy costs.

He emphasized the need for shipping companies to invest in modern, environmentally friendly vessels to comply with the International Maritime Organisation's greenhouse gas emissions requirements, aligning with Malaysia's net-zero ambitions.

Furthermore, Nazery proposed that the government consider linking access to financing from institutions like Bank Pembangunan Malaysia Bhd and Export-Import Bank of Malaysia Bhd to the provision of training berths for maritime cadets. This could address the shortage of practical seagoing experience needed for cadets to qualify as professional seafarers, encouraging more young Malaysians to pursue maritime careers. However, he acknowledged that this remains a commercial decision for shipping companies.