Transport Ministry creates Malaysia Shipping Development Fund to boost local shipping industry, reduce foreign vessel dependence and support maritime hub goals.
PUTRAJAYA: The Ministry of Transport will establish the Malaysia Shipping Development Fund as a sustainable financing mechanism for the national shipping sector.
This statutory trust created under Act A1551 aims to support growth without relying entirely on annual government allocations.
The fund will enable development of the local shipping industry while enhancing industrial technology and capacity.
It will also grow the maritime workforce in a more structured and sustainable way.
“This initiative represents a strategic policy step by the government to drive competitiveness,” the ministry said in a statement.
Malaysia expects to reduce dependence on foreign vessels through the fund’s implementation.
The fund will strengthen national shipping sector competitiveness while building a resilient shipping ecosystem.
This supports Malaysia’s aspiration of becoming a regional maritime hub.
The announcement coincided with the first National Shipping and Port Council Meeting of 2025.
The meeting deliberated seven policy papers that will become government policies in 2026.
Malaysia’s maritime sector handles 96.4% of the country’s trade through seaborne routes.
The nation achieved RM2.88 trillion in total trade during 2024 with a RM136.88 billion surplus.
Malaysia remains committed to global decarbonisation efforts as an IMO member.
The ministry is developing a green bunkering framework with Australia to promote low-carbon fuels.
This includes supporting LNG, biofuel and methanol use to reduce ship emissions.
The ministry will continue strengthening the national shipping sector through local company support.
It will empower the Ship Building and Ship Repair industry while focusing on investment attraction.
Malaysia aims to become a bunkering hub in the Asia-Pacific region by 2030.
This involves reforming ship registration and strengthening maritime training institutions. – Bernama
