Kuala lumpur: Budget 2027 should consider establishing a formal information-sharing framework that enables offshore support vessels (OSVs) to serve as an additional 'third eye' in safeguarding Malaysia's waters and critical offshore energy infrastructure, said Perdana Petroleum Bhd.
According to BERNAMA News Agency, managing director Jamalludin Obeng highlighted that numerous Malaysian OSVs operate or stand by across offshore oil and gas fields at any given time, providing an additional layer of observation over strategic offshore areas. He emphasized that these vessels are continuously manned, equipped with marine communication and navigational systems, and are operated by experienced seafarers who understand the offshore environment. Crew members may be among the first to observe unusual vessel movements, unauthorized approaches towards offshore installations, marine pollution, navigational hazards, distressed vessels, or other abnormal activities around Malaysia's offshore infrastructure.
Jamalludin, who is also a former two-term president of the Malaysia Offshore Support Vessel Owners' Association, clarified that OSVs should not replace the functions of the Malaysian Maritime Enforcement Agency, Royal Malaysian Navy, Marine Police, or other enforcement bodies. However, he suggested that these vessels could become important 'eyes and ears at sea' through an appropriate reporting and coordination framework. He proposed that Budget 2027, scheduled to be tabled in Parliament on Oct 9, could establish a Maritime Industry-Government Information and Reporting Framework connecting OSV operators with the relevant maritime and security authorities.
Participation under the framework could include standardized reporting protocols, dedicated communication channels, and appropriate training for vessel masters and senior officers to recognize and report maritime security concerns. This would allow Malaysia to leverage an existing commercial fleet that is already operating across its offshore waters every day. More importantly, Malaysia's offshore oil and gas installations are critical national assets. OSVs routinely operate around these installations, forming part of the broader ecosystem protecting the continuity of Malaysia's offshore energy production.
Jamalludin also stressed the importance of maintaining a strong, modern, and predominantly Malaysian-controlled OSV fleet from national security, energy security, and maritime sovereignty perspectives. On fleet rejuvenation, he proposed that Budget 2027 establish a dedicated Maritime Fleet Renewal Financing Scheme supported by government guarantees or development financial institutions such as Bank Pembangunan Malaysia Bhd and Export-Import Bank of Malaysia Bhd. The scheme could provide Malaysian vessel owners with longer financing tenures, competitive interest rates, and partial government guarantees to acquire modern vessels.
Additionally, Jamalludin proposed incentives such as accelerated capital allowances or investment tax allowances for new Malaysian-owned vessels with higher technical capabilities, improved fuel efficiency, and lower emissions. Simplified stamp duty and import or sales tax exemptions on vessel-financing instruments and qualifying marine equipment would further reduce the transaction cost of fleet renewal. He also suggested reinvestment incentives for companies that dispose of older vessels and reinvest the proceeds in newer vessels.
On the domestic shipbuilding industry, Jamalludin proposed a shipbuilding competitiveness fund to help Malaysian shipyards invest in automation, digital shipbuilding technology, modern fabrication equipment, engineering capabilities, and specialized workforce development. He stressed that incentives alone are insufficient, as Malaysian shipyards must remain commercially competitive in pricing, construction schedules, quality assurance, and delivery reliability.
Jamalludin also called for accelerated capital allowances, green investment tax allowances, matching grants, or soft financing to support the acquisition of lower-emission vessels and the retrofitting of existing vessels. The incentive framework should be technology-neutral and practical, with an emphasis on measurable reductions in fuel consumption and emissions.
To support Malaysian OSV operators' expansion overseas, he proposed a dedicated Maritime Export and Regional Expansion programme involving EXIM Bank Malaysia and other government-backed financing agencies. Support could include export credit guarantees, working-capital facilities, bid bonds, performance guarantees, and competitive vessel financing for Malaysian companies pursuing offshore contracts overseas. Malaysia should aim to develop not only strong domestic OSV operators but also regional maritime champions capable of exporting Malaysian offshore expertise, vessels, and services internationally.