KUALA LUMPUR, Oct 6 — Offshore support vessel (OSV) operator Perdana Petroleum Bhd has urged the government to introduce targeted fiscal incentives in Budget 2026 to sustain Malaysia’s marine support services sector amid rising operational costs and the industry’s transition towards decarbonisation.
“We need a policy framework that encourages marine service providers to renew their OSV fleet, as the average fleet age now stands at about 14 years. Fleet renewal is vital for the sector’s long-term sustainability,” managing director Jamalludin Obeng told Bernama.
He proposed tax measures such as accelerated capital allowances or targeted reliefs, noting that the high cost of new vessels is often misaligned with volatile charter rates.
The company also backed the introduction of green vessel financing and other initiatives to promote investment in hybrid or low-emission assets, in line with Malaysia’s 2050 net-zero target.
“The cost of adopting green or hybrid assets remains a barrier. Incentives would help companies move forward and accelerate industry decarbonisation,” Jamalludin said.
He added that government-backed financing schemes, co-funded with commercial banks, could help ease capital constraints for local offshore operators.
On taxation, Jamalludin noted that the current application of the sales and service tax (SST) on OSV services adds to cost uncertainty, and called for a more streamlined and transparent framework.
“While we understand the government’s aim to broaden the tax base, a fairer and more consistent SST regime is needed,” he said.
Perdana Petroleum further urged the government to maintain capital expenditure commitments from Petronas and production sharing contractors, saying this would provide revenue visibility and strengthen supply chain resilience.
“Policies that strengthen local participation — including vendor development programmes and stronger local content enforcement — would ensure Malaysian players remain firmly anchored in long-term upstream projects,” Jamalludin added.
