The country’s shipping sector is undergoing some rough times, with some companies closing down after failing to obtain financing for operations.

For those still running, they are struggling, according to president of Malaysia Shipowners Association (Masa) Nordin Mat Yusoff.

Despite improvements in the world economy over the last five years, he noted that “strong winds are still hitting the sector.”

He also attributed the drop in business to many companies no longer requiring ships for cargo transportation.

“This situation is made worse with the mushrooming of new cargo ships in the market and also the high cost of operations brought by the fuel price hike,” he said at the 35th anniversary celebration of Sabah and Sarawak Shipowners Association (SSSA) here on Saturday night.

Nordin said the combination of the two factors was really adverse to the industry.

“This is the challenge that we are facing in this sector, which requires high capital.”

However, he underlined shipping as an important sector in Malaysia as 95% of businesses relied on freight services and the supporting offshore supply vessels (OSVs) for the port operations.

“Without these forwarding carriers, the country’s economy which substantially relies on the export revenues from oil and gas, could be hard hit,” he said.

The association, he added, in realising this would continue to work hard in looking after the interest of its members.

The event, where Second Finance Minister Datuk Seri Wong Soon Koh was also present, was attended by representatives from China, South Korea, Singapore, the Philippines, Indonesia and Brunei. It was also to commemorate the completion of SSSA’s new building.

In his address, Wong advised shipowners to maintain their enterprising spirit even when facing current difficulties.

“I know shipping has gone through several periods of stagnation due to the prolonged slowdown of trades, but according to a recent survey, shipbuilding will soon emerge as one of the better sectors (in Malaysia) slated for recovery,” he told guests.

Noting that the SSSA had come a long way since its inception more than three decades ago, Wong hoped that with brilliant ideas, ship entrepreneurs would persist in maintaining their business.

“If they all could work together with help from SSSA and its associates, they would be able to make bigger, more prosperous strikes.”