EA Technique md Abdul Hak Md Amin was quoted as saying that the contracts complemented its current order book of MYR1.7 bn, which would help sustain it until 2025.
“It’s not all gloom and doom in the shipping and oil and gas industries.
“And if we manage to secure between 30% and 50% of the total amount, which is worth about MYR350m, it will definitely improve our order book,” he said.
On the shipbuilding and ship repairing segment, which is another business under EA Technique, Abdul Hak said the activities had slowed down due to the introduction of the Goods and Services Tax, which led to more expensive spare parts for the industry.
“We cannot compete with countries like China in that sense (shipbuilding and ship repairing) because of the expensive spare parts and there are a lot of shipyards that don’t have contracts right now,” he added.
The overcapacity of ships in the industry locally and globally back in 2007 has also contributed to the current situation, he said, adding that some ship orders were cancelled and put on hold at least until the market picked up.
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