Malaysia offers shipyard tax perks

Malaysia offers shipyard tax perks

Malaysia’s Ministry of International Trade and Industry (Miti) has introduced new tax incentives for shipbuilders and ship repair yards.

Miti said in a statement yesterday new companies can either opt for pioneer status which comes with a 70% of income tax exemption on statutory income for five years or an investment tax allowance of 60% on the first qualifying capital expenditure incurred within five years.

Malaysia has 100 shipyards, of which six are deemed large. Shipbuilders’ heavy focus on offshore-related construction has seen orders dry up in the past couple of years. Within Southeast Asia, Malaysia faces great competition when it comes to shipbuilding with neighbours in Indonesia, Singapore, Vietnam and the Philippines all having significant yard facilities.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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