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The Maritime Industry Authority is pushing for the enactment into law of bills that will modernize and provide incentives for the shipbuilding and ship repair industry
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The agency is urging lawmakers in the 20th Congress to pass the SBSR Development Bill and the SBSR Fiscal Incentives Bill
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There are four House bills on SBSR development and shipyard incentives
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MARINA said both bills, when enacted, will jumpstart the maritime industry by unlocking capital investment in SBSR and driving sustainable growth across related sectors
The Maritime Industry Authority (MARINA) is pushing for enactment into law of bills seeking to modernize and provide incentives for the shipbuilding and ship repair (SBSR) industry.
The agency is urging lawmakers in the 20th Congress to pass two bills. The first is the SBSR Development Bill that aims to employ a whole-of-government approach to create a policy environment conducive for the overall development of the industry. The second is the SBSR Fiscal Incentives Bill that aims to amend the country’s fiscal policy to provide companies incentives to invest in the SBSR industry.
There are currently four House bills with the same goals filed in the Lower House, MARINA administrator Sonia Malaluan said in a speech during the agency’s recent stakeholders’ forum.
Malaluan said MARINA is in close coordination with 1Tahanan Party List representative Nathaniel Oducado, author of House Bill (HB) No. 2597 (Shipyard Fiscal Incentives Act of 2025) and HB 2598 (SBSR Development Act of 2025).
Ilocos Norte 2nd district representative Angelo Barba and Oriental Mindoro 1st district representative Arnan Panaligan have also filed HB Nos. 1718 and 134, respectively, both titled the Shipbuilding Development Act of 2025.
During the same stakeholders’ forum, Engr. Nikko Ariel Non of the MARINA Shipyards Regulation Service said that for the past years, the Philippines has been recognized as one of the top shipbuilding nations in the world.
According to the United Nations Conference on Trade and Development Review of Maritime Transport Report 2024, the Philippines ranked fourth to China, South Korea, and Japan with an 805,938 gross tonnage production output in 2023.
This output, accounts for only 1.2% of the world’s production output.
Moreover, based on MARINA assessment, 66% of the country’s 408 shipyard facilities require rehabilitation. Of the total, 95% of shipyards conduct local repair and maintenance and only 5% shipbuilding–mostly for large and foreign-owned yards–for the export market.
Majority of Class B and C shipyards in the country are also outdated and underfunded.
“These challenges hinder growth of the industry, highlighting the limitation on capacity and capability due to lack of institutional support from the government,” Non said.
“We have the people, we have the skills. But skills and potential can only take us so far without strategic dedicated government support, our incredible potential will remain anchored, unable to set sail and compete on the world stage,” Non added.
Salient provisions of the SBSR Development Bill include institutional support for the industry by, among others, fast-tracking of permits and foreshore leases; financing programs; and development of the steel industry and other ancillary-related industries.
It also pushes for coordination among government agencies, research and development for shipbuilding and green technologies; conduct of progressive assessment of the SBSR capability and capacity; and shipbuilding for national defense.
The bill supports the establishment of maritime industrial parks as centers for SBSR and other maritime-related services.
Meanwhile, key provisions of the incentives bill include value-added tax (VAT) exemption on equipment and materials; income tax holiday (ITH) for the expansion/ upgrading of SBSR facilities and shipyard operations; tax credit on domestic capital equipment and materials; tax and duty exemption on imported capital equipment and materials; and tax incentives for green projects.
MARINA said both bills, when enacted, will jumpstart the maritime industry by unlocking capital investment in SBSR and driving sustainable growth across related sectors.
According to Organisation for Economic Co-operation and Development and the World Bank estimates, each direct job in shipbuilding creates three to five more indirect jobs, meaning that once fully-implemented, these bills have the potential to generate up to 100,000 direct and indirect jobs nationwide.
Moreover, MARINA said a developed SBSR industry will bolster the domestic shipping sector’s capacity to support agriculture, manufacturing, national defense and inter-island trade. It will also enhance disaster resilience and national food and supply chain security.
To support its push for the enactment of the bills, MARINA is seeking help from stakeholders. During the stakeholders’ forum, 45 shipyard industry stakeholders signed a manifesto of support for the immediate passage of the bills.
Gaudencio Morales of IMP Shipyard said the SBSR Development Bill will benefit not only shipbuilders and ship repairers but also shipowners across the country.
Meneleo Carlos III, chairperson of the Shipyard Association of the Philippines, said he is most excited about the incentives, particularly VAT-free importation of equipment and materials.
Currently, all bills on SBSR development are pending with the Lower House Committee on Trade and Industry while the fiscal incentives bill is with the Committee on Ways and Means. – Roumina Pablo
