Shipbuilding / Ship Repair Industry Strategic Plan 2020 STATUS REPORT

Shipbuilding / Ship Repair
Industry Strategic Plan
2020
STATUS REPORT
2nd October 2012
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1
Content
Recap
Industry
y Performance
Action Taken
Number of
effective
slides:
16
Challenges
Way Forward
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Content
Recap
Industry
y Performance
Action Taken
Challenges
Way Forward
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3
Recap
Since the last forum held in 2010, shipbuilding / ship repair sector
of the maritime industry has gone through several key milestones
Stakeholders
Briefing
2010
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2012
4
Recap
SBSR Strategic Plan 2020 - our vision is to be a major player in
the small to medium-sized
medium sized shipbuilding market; substantially
contributing to the nation’s economy
OBJECTIVES
to capture 80% of local new build market
to capture 2% of global new build market
to capture 3% of Selat Melaka repair market
to capture 80% South China Sea offshore
repair market
to focus development initiatives on niche
market
k t involving
i
l i <120
<120m vessels
l
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Recap
SBSR Strategic Plan 2020 - in our quest to achieve the set
objectives,
objectives seven (7) Strategies and forty (40) Action items have
been identified
STRATEGIES
1. Establish business friendly policies that support the growth of the industry
2 Strengthen
2.
St
th institutional
i tit ti
l framework
f
k
3. Reinforce regulatory framework to assure the integrity of SBSR companies
and quality of their products
4. Attract and prepare adequate and capable workforce
5 Apply local design and adopt new shipbuilding / ship repair technologies
5.
6. Improve financial & incentive packages and promote inward investment
7. Upgrade competency and level of sophistication of the industry
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Content
Recap
Industry
y Performance
Action Taken
Challenges
Way Forward
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Industry Performance
In 2011, SBSR industry generated RM7.05 billion in revenue,
provided more than 30,000
30 000 jobs & attracted investments worth
~RM6 billion approved by MITI
Export & Import:
Ships, Boats & Floating Structures
Number of vessels imported by local
shipowners is reducing in the last 3
yyears - g
good sign
g to local shipbuilders
p
6
Imports 5
Exports 4
RM Billions
Downtrend in exports indicates that
local shipyards have not been able
to capture foreign new build market
due to global economic slowdown capturing domestic new build market
i th
is
therefore
f
essential
ti l
3
2
1
0
2007
2008
2009
2010
2011
2012 (Jan ‐
July)
Source : MITI
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Industry Performance
Number of vessel build by local yards is relatively consistent in
the last 3 years whilst gross tonnage is on an uptrend
Although the size of vessels is increasing, the complexity of the product may
not necessarily
y be in accordance with our target
g
Out of RM2.4 billion worth of vessels built last year, 14% are OSVs - slightly
lower than the previous year
Local Build - Vessel Type
No. of
vessel
Total GRT - New Build
200
200
OTHERS
180
180
160
140
OFFSHORE
140
120
PASSENGER
100
SPECIALTY SHIP
80
Th
housands
GOVERNMENT
160
TANKER
60
100
80
60
BULKER
40
40
CONTAINER
20
N. COASTAL
0
2005
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120
2006
2007
2008
2009
Source : Marine Department
2010
2011
20
0
2007
Proprietary and Confidential
2008
2009
2010
Source : Marine Department
2011
9
Content
Recap
Industry
y Performance
Action Taken
Challenges
Way Forward
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Action Taken
Several action items identified in SBSR Plan 2020 are currently
implemented through an EPP under Business Services NKEA
Strategy Strategy
1
Policy
1 3 imports
1.3
i
t off raw material
t i l andd marine
i equipment
i
t
Strategy 4
Human Capital
4 2 enhancement of blue collar training
4.2
4.3 bridging program for graduate engineers
4.4 establishment of apprentice programs
Strategy 5
Design & Technology
5.2 developing indigenous OSV design
Emerging Malaysia
g/
as Shipbuilding
Ship Repair Hub
Strategy 7
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Industry Enhancement
7.4 improve river draft around SBSR clusters
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Action Taken
MITI is positively responding to the industry’s request to ease the
process of importing raw materials (Action 1
1.3)
3)
raw materials certified by internationally recognized
Classification bodies are exempted from SIRIM
sample testing
applicable to all materials for use in SBSR and
marine
i equipment
i
t manufacturing
f t i activities
ti iti
propose introduction of ‘Certificate of Recognition’
(COR) to replace Bona-Fide scheme
1
• Exporter send invoice &
mill cert / Cert of Origin to
local companies
2
• C
Companies
i submit
b it above
b
documents, relevant forms
& ‘COR’ to Customs
3
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• Goods allowed out from
port
12
Action Taken
Adequate supply of capable workforce (both white & blue collars)
is key to the growth of SBSR industry (Actions 4.2,
4 2 4.3,
4 3 4.4)
4 4)
MOHR and MARA are currently engaged to develop
National Occupational Skill Standard (NOSS) for
specific skills of high demand
Suitable shipyards are being identified to participate
in SLDN apprentice program
Ministry of
Human Resource
MIGHT Meteor has been tasked to undertake
MIGHT-Meteor
bridging programs for graduate engineers through
TeSSDE / LEADER Series
AMIM has been appointed by MOHR as Industrial
Lead Body (ILB) to chart the direction of HCD for
SBSR industry
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Action Taken
Indigenous OSV design is essential to maximize local content in
the targeted niche market (Action 5
5.2)
2)
Discussions with local design houses and system
designers / providers are on going
Project duration - 2 years from design to prototype
Boustead to formalize a group of design team
Specification of OSV required by OSV owners and
P t
Petronas
are being
b i compiled
il d
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Action Taken
Permanent solution to siltation problem at Kuala Baram will
further grow SBSR activities in Miri (Action 7.4)
7 4)
State Government and Authorities are reviewing various options proposed by
the consultant & technical experts - channeling siltation out to deeper water &
maintaining draft at least 8m
Project funding option is yet to be finalized - 100% PFI & joint funding are
being considered
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Action Taken
In intensifying global marketing, MATRADE is collaborating with
AMIM members to facilitate international trade for SBSR industry
Specific Marketing Mission (SMM) - MATRADE’s
Business Trade in Singapore during Asia Pacific
Maritime Exhibition (Action 2.4)
Business Partnership
p Program
g
with Gyeongnam
y
g
Province of South Korea - potential collaboration
with renowned Korean shipbuilders & equipment
manufacturers (Action 7.2)
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Action Taken
Discussions with MOT and Marine Department are underway to
tighten Cabotage Policy and reinforce regulatory framework
In response to request made by East Malaysia traders to use more foreign
flagged vessels,
vessels MIGHT insisted MOT not to further relaxed the Cabotage
Policy - to date, remain status quo (Action 1.1)
Apart from resolving CoA issue,
issue proposal to use ‘Certificate
Certificate of Recognition
Recognition’
(COR) scheme to promote certain level of industry standard is well received
by Marine Department (Action 3.2)
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Action Taken
A proposal is to be tabled to MoF & MIDA to stimulate industry
growth by incentivising DDI and FDI (Action 6.3)
6 3)
Sector
Shipbuilding
Ship Repair
Training
Certification
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Activities
Incentive
Justification
Ship ddesign
Shi
i
engineering & R&D
PS/ITA & RA
Promote
P
t growth
th in
i high
hi h value
l marine
i ddesign
i andd engineering
i
i
business through DDI and FDI
Eqpt manufacturing
& assemblyy
PS/ITA & RA
Promote growth of local content in shipbuilding activities through
DDI and FDI
Ship construction
RA
Increase capability and capacity of local shipyards in capturing
international and domestic market through DDI only
Repair / Conversion
/ Upgrade / MRO
RA
Increase capability and capacity of local shipyards in capturing
international and domestic market through DDI only
Component MRO
PS/ITA & RA
Seafarers training
PS/ITA & RA
Technicians training
PS/ITA & RA
Design approval,
marine product
certification
RA
Promote growth in equipment / sub-system MRO activities though
DDI and FDI
Promote
P
t private
i t sector
t iinvestment
t
t in
i fulfilling
f lfilli the
th demand
d
d off marine
i
industry workforce requirement though DDI and FDI
Encourage locally established classification bodies to deepen their
activities beyond basic survey services
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Content
Recap
Industry
y Performance
Action Taken
Challenges
Way Forward
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Challenges
New Build & Equipment Market - specific actions have to be taken
to overcome the following challenges
Replacing foreign vessels currently serving the local
O&G sector - TERAJU
TERAJU’s
s target to increase Bumiputera
participation
Shipyards capability to satisfy shipowners’ quality, cost and delivery expectation
Capability of local players to market its own products without going through
third party / broker
Component and equipment manufacturers to qualify their products into marine
standard and meeting classification requirement
F i market
Foreign
k t penetration
t ti as a resultlt off FTAs
FTA entered
t d by
b Malaysia
M l
i
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Challenges
Ship Repair Market - specific actions have to be taken to
overcome the following challenges
Capturing repair and conversion markets from
vessels plying the Straits of Malacca
Capability of local players to be responsive and
achieve the required
q
turn around time
Availability of service providers in East Coast to
avoid OSVs resort to Batam facilities
East Malaysia shipyards to expand their capabilities
to offer repair services apart from new building
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Content
Recap
Industry
y Performance
Action Taken
Challenges
Way Forward
© MIGHT 2012
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22
Way Forward
Cooperation of all stakeholders are requested to enable the
following urgent initiatives to be undertaken next year
Financial contribution by the industry to enable more 6G welders to be produced
t fulfill
to
f lfill currentt d
demand
d off skilled
kill d ffabricators
bi t
b
based
d on MARA
MARA-Petronas
P t
model
d l
(Action 4.1)
Introduction of Export Rebate, income tax exemption for OSV seafarers and
import tax exemption for shipowners (Action 6.2)
Improving industry data capture system between local companies, Classification
B di
Bodies,
M
Marine
i D
Department,
t
t R
Royall C
Customs
t
and
d MIGHT (Action
(A ti 3
3.5)
5)
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Th k You
Thank
Y
www.might.org.my
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