The ministry said the fund is a strategic policy measure to drive the sector’s competitiveness and capability through a “more structured and future-oriented domestic industry”.

“Through MSDF, Malaysia is expected to reduce dependence on foreign vessels, strengthen the national shipping sector’s competitiveness and build a sustainable, resilient and competitive shipping ecosystem to support the nation’s aspiration to be a regional maritime hub,” it said in a statement.

The ministry said the maritime sector remained the “linchpin of the nation’s economic growth”, noting that 96.4% of Malaysia’s trade is handled through sea routes.

It said Malaysia’s trade performance in 2024 recorded imports and exports worth RM2.879 trillion, generating a trade surplus of RM136.88 billion, the highest since 1998.

The ministry also highlighted the sector’s achievements, with Port Klang ranked among the world’s 10 busiest container ports by Lloyd’s List International, while Port of Tanjung Pelepas was the fifth most efficient port globally under the World’s Container Port Performance Index.

It also said Malaysia has the highest maritime shipping connectivity in the world, according to the 2025 Global Liner Shipping Connectivity Index released by the United Nations Conference on Trade and Development.

The ministry said under the 13th Malaysia Plan, the government will continue to strengthen the domestic shipping industry by helping local shipping companies with ship financing facilities.