Budget 2027 prolongs shipping tax relief and introduces fixed stamp duty
Vessel financing will carry stamp duty of RM2,000 for loans up to RM100 million and RM5,000 for larger loans.
Budget 2027 will keep Malaysian shipping companies fully exempt from income tax through the year of assessment 2036, alongside a new fixed stamp duty structure for vessel financing. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the measures when presenting the budget in the Dewan Rakyat.
Borrowing to buy or build Malaysian vessels will incur RM2,000 in stamp duty when loans do not exceed RM100 million. For loans exceeding RM100 million, the duty is RM5,000.
Speaking to Bernama, maritime analyst Nazery Khalid said the incentives could make ship financing less costly, with locally constructed vessels particularly benefiting. He cited demanding collateral conditions and repayment terms that were out of step with vessels’ useful lives as financing obstacles.
Nazery said the measures could strengthen domestic shipping capacity for energy, bulk commodities and container cargo. They could also curb reliance on foreign ships, reduce foreign exchange outflows and allow smaller operators to digitalise more quickly.
On maritime training, he suggested making financing from government-owned financial institutions or budget-funded maritime allocations conditional on shipping companies offering cadets onboard training places. Cadets needed those places to gain practical experience and qualify as professional seafarers, he said. However, Nazery acknowledged that providing training berths was a commercial choice that the government might be unable to mandate.
