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7 April 2017 Singapore Yacht Show
ONE°15 Marina Singapore
ASIAN MARKET UPDATES MALAYSIA
COUNTRY REVIEW MALAYSIA
SU LIN CHEAH Spinnaker International Pte Ltd
Singapore
• Independence in 1957 • Federation of 13 States and 3
Federal Territories; Parliamentary democracy with a Constitutional Monarchy
• Legislation: Federal and State level
• Official/National Language: Bahasa Malaysia
• Business Language: English
• Official Religion: Islam • Justice system: Based on British law
in tandem with Shariah court
• Ethnic Races include: Bumiputera, Chinese, Indians
• Vernacular Languages include: Mandarin, Cantonese, Hokkien, Tamil, depending on ethnic race
Source: Commonwealth of Nations
MALAYSIA Country Brief
Land Mass: 330, 290 sq km Coastline: 4, 675 km Land borders shared with: • Thailand • Indonesia • Brunei
Sources: Department of Statistics Malaysia extracted Mar 2017)
MALAYSIA Country Brief
Population Density by State, Malaysia 2010
• GDP (current): US$ 276.9 bil • GDP growth: 5% (2015) • GDP Forecast: 4.2% (2016 est) • GDP per capita: US$ 8,746 (2016 est) • Unemployment rate: 3.4% • Diversified economy • Currency: Ringgit • Gini coefficient: 0.41
• The mean Urban household income per month in 2014 was RM 3,921 from RM 2,465 in 2012, a CAGR of over 7% over the same period.
• HNWI Population: 65,000 (2015) • HNWI Wealth: US$ 422 billion
New Economic Model (2015) • Strategic reforms to move the
economy to high income and higher value- added activities in industry and services.
• The reforms include a shift in emphasis to relying more on private sector initiative.
Sources: Department of Statistics Malaysia extracted Mar 2017); The World Bank (Country Report, Sept 2016); Capgemini Wealth Report 2015
MALAYSIA Country Brief
Ref Exchange rate: US$1 : Malaysian Ringgit 4.41
Source: Capgemini Financial Services Analysis 2016
Urban Centres
Sources:: Department of Statistics Malaysia extracted Mar 2017; Marine Department)
MALAYSIA Urban Centres, Distributive Trade & Harbours
Commercial Harbours H • Dermaga Tg Lembung • Kuala Perlis • Teluk Ewa Jetty • Penang Port • Lumut Port • Telok Intan
• Port Klang • Port Dickson • Sungai Udang Port • Malacca Port • Muar • Tanjung Pelepas • Mersing
• Kuantan Port • Kemaman Port • Kertih Port • Tumpat • Kota Bharu • Kuching Port • Rajang Port
• Bintulu Port • Miri Port • Labuan Port • Kota Kinabalu Port • Sapangar Bay Oil
Terminal • Kudat
• Sandakan • Lahat Datu • Kunak • Semporna
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• Klang Valley (7.2 mil)- Kuala Lumpur, Petaling Jaya, Putrajaya, Shah Alam, Klang
• Kinta Valley (1 mil)- Ipoh • Penang (1.5 mil) • South Johore – Johor Baharu
(1.4 mil)
• Central Peninsular – Kuantan, Pahang (400K)
• East Coast Peninsular (1mil)– Kuala Terengganu, Terengganu, Kota Bharu, Kelantan
• Kuching, Sarawak (320K) • Kota Kinabalu, Sabah (700K)
Tourism is a major revenue stream for Malaysia (est 15% of GDP) and the country’s marine attractions are a major feature. Its KPIs include visitors on cruise liners and visitors to the marine parks.)
Source: http://ctatlas.reefbase.org
MALAYSIA Marine Tourism & Cruising
Number of Marine Parks (MPAs): 50 (total area: 5,725 sq km) Number of Islands: 878 (over 500 still unnamed)
Source: Armada Sportfishing (for illustrative purposes only)
MALAYSIA Sportfishing
Credit: Armada Sportfishing
Sources: Department of Statistics Malaysia (extracted Mar 2017);; Marine Department; open sources
MALAYSIA Marina Clubs & Government Marinas
Marina Clubs M Government Marinas G • Batu Uban, Penang (35) • Pulau Indah, Selangor (100) • Melaka (40) • Kuching, Sarawak Facilities not officially listed include: Muar, Johore; Pulau Duyung, Terengganu (refer Marine Dept www.marine.gov.my)
• Tanjung Pengelih, Johore • Pulau Tioman, Pahang • Tanjung Gemok, Pahang • Labuan Marina
• Royal Langkawi Yacht Club • Awana Porto Malai Resort • Rebak Marina, Langkawi • Telaga Harbour, Langkawi • Straits Quay, Penang • Lumut Int’l Yacht Club, Perak
(closed)
• Marina Island, Pangkor • Royal Selangor Yacht Club • Admiral Marina & Leisure Club,
Port Dickson • Sebana Golf & Marina Resort,
Johore
• Senibong Cove, Johore • Puteri Harbour, Johore • Miri Marina, Sarawak • Sutera Harbour, Kota Kinabalu,
Sabah • Kudat Golf & Marina Resort,
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Summary of Registries • Langkawi International Yacht
Registry • Terminable Certificate of Registry –
registration of vessels <150GRT and under 24m. Valid 5 years.
• Boat Licence (Boat Rules 1953) for for vessels <500 GRT. Malaysian individuals and entities only.
• Malaysian Ship Registry under Merchant Shipping Ordinance 1952
• Malaysian International Ship Registry (Labuan)
• Further information: Marine Department (www.marine.gov.my)
Sources: AMIM Presentation - ABF2015
MALAYSIA Overview of Regulations
Import Controls, Regulations and Taxes • Import rates range from 0% to 50%. Customs duties applied
to the dutiable value of the imported goods. • Goods & Services Tax of 6% implemented in 2015 • Yachts / boats (complete) : 0% duty • Boat parts : 10% import duty / 5% excise
Export Incentives (general) • Rebate on imported parts if the completed product is
exported. • Exemption of income for increased exports for:
• Malaysian international trading company • Allowance for increased exports • Exemption of income for significant increase in export,
penetration of new markets and for Export Excellence Award
• Exemption of income for increase in export of manufactured motor vehicles, automobile components or parts
• Double deduction for promotion of exports • Double deduction for qualifying expenses in promotion
export of all services
Regulatory authorities (main) • Ministry of Transport (primary) • Ministry of Natural Resources and
Environment • Ministry of International Trade &
Industry
• Marine Department • Department of Marine Park • Dept of Fisheries Government agencies • Malaysian Industry-Government
Group • Maritime Institute of Malaysia
(MIMA) Industry Representation (default) Association of Marine Industries of Malaysia (AMIM)
MALAYSIA Marine Industry: Regulators and Agencies
Sources: Open sources
Key Activities • Manufacturing of government
vessels (armed forces, enforcement, support) and commercial vessels (oil and gas, offshore transport and supply, ferries, tourist transfer)
• Repair and refit • Engines, parts and accessories -
supply and maintenance • Manpower – recruitment and
training • Surveying
Issues • Shipping sector facing potential
downturn; yards need to diversify to high-value work or change business model. The commercial sector is not able to fully meet the needs of luxury pleasure crafts and recreational boating
• Regional competition: Phuket, Singapore
Sources: AMIM Dec2016 report; Commercial Industry discussion
Capability: Build up to 30,000 DWT Repair up to 450,000 DWT Export (2014): Singapore, India, Indonesia, USA, UAE
104 Shipyards
85 Non-shipyards
Shipbuilding & Repair
189 Companies
Source: Ministry of Int’l Trade & Industries
MALAYSIA Government & Commercial Marine Business
Malaysia is 2-stroke market (82% of total imports) Applications: Enforcement, transport, tourism. Angling Estimated 90% of imports sold into market
Propulsion & Power (Rec) Outboards: • Yamaha • Mercury • Suzuki • Evinrude • Honda • China brands Inboard: • Volvo • Mercruiser • Yanmar • Cummins
Diesel: • Volvo • Caterpillar • Yanmar • Cummins • MAN • MTU Power: • Onan • Kohler • Cummins
2016 OBM Imports 11,209 units
2 STROKE <30hp
2 STROKE 31 - 90hp
4 STROKE 135> hp
4 STROKE 20 - 135 hp
MALAYSIA Recreational Marine Business: Local Build
*Semi-knock down import; local assembly
Source: Open sources
Overview • Types: • Sport boat • Small cabin cruisers • Motoryachts (custom) • Houseboats (custom)
• Propulsion: • Boats and cruises: mainly
outboards >90hp - 300hp; single or twin;
• Motoryachts and larger: Diesel • Purpose: Sportfishing, day tripping,
lacal marine tourism
• Local production either on demand or limited quantities
• Semi-knock down imports from Europe or South America, assembled on demand
• No official registration or records of numbers
Overview • Competitive environment • Exclusive positioning and client
profile • Lack of a “middle market” due to
the (lack of) financing and relative high cost of ownership
• Regional sales coverage is essential; cross-border sales inevitable
Issues for Manufacturers seeking representation • Challenge in meeting
Manufacturer’s requirements for dealership appointment with regards to stocking, forecasting and purchase commitments. E.g. stocking is not viable due to investment required, holding costs and devaluation
Sources: Industry discussion
MALAYSIA Recreational Marine Business: Imports
Types • Sport Boats 20’ – 30’ OBM, Sterndrives • Sport Cruisers 24’ – 36’ OBM, Sterndrives, Diesel • Motoryachts 40’ – 90’ Diesel • Catamaran Sail 40’ – 70’ Diesel • Catamaran Motor 40’ – 70’ Diesel • Sailing Yachts 26’ – 60’ Diesel
Active brands in the market
Sources: Open source
MALAYSIA Recreational Marine Business: Promotions
International Regattas Dealer Events
?
Marine Shows
Maritime Events*
*Government and Commercial events
MALAYSIA Strategic Plan for Growth
Sources: Industry discussion
Growth Drivers • Growth-promoting
Regulation • Financial Structures • Infrastructure • Manpower
Engagement – internal/External • Industry initiated and driven • Government engagement • Business engagement • Public engagement • Regional and international synergies
Evidenced-based Impact Assessments • Market Intelligence • Statutory statistics • Industry performance data
Economic Benefits • Contribution to national economy • Economic impact at local level • Business diversification or change to high
value activities • Improvement in quality of life
The Horizon
MALAYSIA
• Leadership
• Collaboration
• Synergy
THANK YOU
Government: • Ministry of Transport Malaysia • Ministry of International Trade & Industry Malaysia • Ministry of Environment & Natural Resources • Department of Survey & Mapping Malaysia • Department of Statistics Malaysia • Marine Department Malaysia • Fisheries Department Malaysia • Customs & Excise Department Malaysia • Economic Planning Unit Malaysia • Malaysia Industry-Government Group • Maritime Institute of Malaysia
Private • Association of Marine Industries of Malaysia
MALAYSIA References