A memorandum of understanding (MOU) was signed between three shipyard Malaysian companies and a Singapore company to build the first green offshore supply vessel (OSV) in Malaysia.

Association of Marine Industries of Malaysia (AMIM) is facilitating the collaboration between the significant local shipbuilding and ship repair (SBSR players) – Grade One Marine Shipyard (GOMS) Sdn Bhd, Muhibbah Marine Engineering (MME) Sdn Bhd and Shin Yang Shipyard (SYS) Sdn Bhd – and Singapore company, Evolution Concepts (EC) Pte Ltd.

It is an official strategic partnership to build the first green offshore supply vessel (OSV) locally and supply it to the global market.

The MoU signing was held in Kuala Lumpur earlier today, graced and witnessed by  Dato’ Sri Norazman Ayob, Deputy Secretary General (Industry) at the Ministry of International Trade and Industry (MITI).

This MoU would see the aforementioned parties leveraging on each other’s strengths to build the first green OSV in Malaysia; whereby the Malaysian companies (GOMS, MME, and SYS) would provide the shipyard facilities and end-to-end vessel construction while the Singapore company (EC) designs the vessel, incorporating the green technology.

The project, which tentatively commences in 2023 would enrich the SBSR industry and indirectly, the oil and gas sector. With this, Malaysian SBSR companies are proven capable of building green vessels and are ready to receive orders.

The project costs approximately USD25 million and is expected to take around 18 to 24 months to be completed, from the designing to the building phase.

Dato’ Sri Norazman said that the project would significantly transform the shipping industry worldwide, consistent with the global standard. “As climate change and sustainability are rapidly shaping the world’s economic growth and trade, the Malaysian Government reckons the importance of the progressive concepts of green energy, energy conservation, environmental protection and sustainable development, as encapsulated in the Environmental, Social, and Governance (ESG) standards as well as the Sustainable Development Goals (SDGs) advocated by UNESCO.

AMIM’s President, Soo Jee Main said that this sustainability approach to OSV vessels would reinforce Malaysia’s position as one of the key global SBSR players. “Malaysia’s maritime and SBSR industry are recognised globally where we came fourth in the top 5 economies with the highest Liner Shipping Connectivity Index (LSCI) 2021 according to UNCTAD (United Nation Conference of Trade and Development).