Accra:First paragraph of the news story.

According to BERNAMA News Agency, Budget 2027 includes measures aimed at easing financing constraints faced by Malaysian shipowners. The government has extended the income tax exemption for Malaysian shipping companies until 2036 and introduced fixed stamp duty rates on loans for the purchase or construction of Malaysian vessels.

The fixed 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 expected to reduce ship financing costs, particularly for locally built vessels, and foster the development of domestic shipping capacity.

Maritime analyst Nazery Khalid noted that these measures could support the growth of local shipping capacity in sectors such as energy, bulk commodities, and container shipping, aligning with Malaysia's increasing trade volumes and economic expansion.

Additionally, the incentives may help reduce Malaysia's reliance on foreign vessels and foreign exchange outflows while addressing local shipowners' calls for more supportive financing conditions. Smaller operators might also benefit from accelerated digitalisation to stay competitive amid global supply chain shifts and rising energy costs.

Nazery emphasized the importance of investing in modern vessels with environmentally friendly features to meet the International Maritime Organisation's greenhouse gas emission standards, supporting the country's net-zero goals. He also highlighted the challenges faced by maritime cadets in securing training berths on commercial vessels, proposing that the government link financing access to the provision of training berths. This initiative could address the shortage of training opportunities and encourage more young Malaysians to pursue maritime careers.