Kuala Lumpur:A 10-year extension of income tax exemptions is anticipated to attract more shipping companies to register their vessels in Malaysia, according to Transport Minister Anthony Loke.

According to BERNAMA News Agency, the income tax exemption for Malaysian shipping companies will cover the years 2027 to 2036, providing the maritime sector with enhanced certainty for long-term investment planning. Previously, companies had to renew their tax exemptions every two years, which created uncertainty and discouraged investments, including in vessel purchases.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the extension during the tabling of the 2027 Budget in the Dewan Rakyat, themed 'Reaching For The Skies, While Anchored On Our Values'. In addition to the tax exemption, the government has introduced fixed stamp duty rates for financing vessel purchases or construction. Financing up to RM100 million will attract a RM2,000 stamp duty, while amounts exceeding RM100 million will incur a duty of RM5,000, a significant reduction from the previous 0.5% charge.

This reduction in stamp duty is expected to make shipping investments more attractive and encourage new vessel construction, benefiting both shipping companies and the broader maritime industry. The measures are likely to spur investment in vessel ownership and boost Malaysia’s domestic shipping and shipbuilding industries, including in Sibu, Sarawak.

Malaysian Shipowners' Association (MASA) chairman Mohamed Safwan Othman welcomed the extension, noting that it provides shipowners the long-term certainty needed to purchase or build vessels in Malaysia and register them under the Malaysian flag. He expressed gratitude to Loke for his efforts in securing this longer tax exemption period.