Malaysia’s Nam Cheong to put up new shipyard in Labuan

Malaysian offshore support vessel builder Nam Cheong is set to invest RM60 million (US$14 million) to turn the Labuan Halal Hub Complex in Kiamsan, Labuan, into a new shipyard.

Nam Cheong had emerged as the winner in a tender for the lease of the 7.3-hectare seaside complex, which was originally built to serve as a one-stop halal warehousing, storage, and distribution centre.

Becoming operational in 2011, the complex has been reportedly utilised well below its maximum capacity after officials of Malaysia’s Ministry of Federal Territories confirmed that many of the facilities within were not built in accordance to their original specifications and were therefore unusable.

Nam Cheong wholly-owned subsidiary Nam Cheong Dockyard and Labuan Corporation, a state-owned enterprise under the Ministry of Federal Territories, recently signed a memorandum of understanding (MOU) regarding the long-term lease of the complex to re-develop its existing facilities. The two companies are expected to sign a definitive agreement before the end of the year.

Construction of shipyard facilities will commence this January and is expected to be completed by the end of 2021. Following completion, Nam Cheong’s shipbuilding activities in China and Indonesia will be relocated to the Labuan complex.

Nam Cheong’s new facilities at Labuan will include: a warehouse that will serve as a supply base; yard utilities; waterfront bulkhead facilities for ship repairing, ship berthing, and fabrication workshops; and a training centre for workers.