The domestic shipping licence fee imposed on foreign vessels operating in Malaysian waters will be revised up to 200 per cent as the current rate is considered too "low".

Deputy Transport Minister, Datuk Aziz Kaprawi, said the current charges set for foreign vessels were RM200 for the first net register tonnage (NRT) and 40 sen for the subsequent NRT.

"The implementation will be done in six months' time and the revised rate is not for those on transhipment or those which came to berth, unload and sail on, but this is for ships that are operating and working in Malaysian waters.

"We hire and charter (the ships) for drilling purposes, transporting oil and others. They are called as domestic shipping," he told Bernama.

These foreign vessels, which are dedicated for oil and gas-related job in Malaysian waters, are hired at a minimum charter rate of RM4,000 and even up to RM30,000 per day.

"What we charged is too low, so sometimes such vessel is more lucrative,"he added.

Asked whether the timing of the fee rate revision is suitable with the current fluctuations of the oil prices, Abdul Aziz said, the rate revision was still relevant as oil and gas companies had the option of using local vessels.

"Sometimes, it's just an excuse to use a foreign vessel whereas there is only a small difference in specification between a local vessel and a foreign one but the former is a bit expensive," he added.

According to the Ministry of Transport's Industrial Report, local offshore support vessels (OSVs) have increased to 263 units in 2014 versus 207 units five years ago while oil tanker ships grew to 201 units in 2014 vis-a-vis 193 units in 2010.

It was reported that OSVs plying shallow waters were seen to be more resilient in the face of the price slump.

The global benchmark Brent crude futures saw a dramatic decline and it was recently traded at US$38.91 (US$1=RM4.05) per barrel as compared to a record peak of US$145 in 2008.

Abdul Aziz also pointed out that OSVs and other local vessels were required to pay corporate tax, sailors their income tax while higher rate was imposed on these ships owners to secure financing facilities as compared with companies overseas.

"For example, the same ships from Singapore will not be imposed corporate tax, nor will the sailors pay income tax. For them, even the financing is between two to three per cent," he added.