Leisure Boat Industry Langkawi

The Study on the Leisure Boat Industry in Langkawi, Kedah:
Capabilities and Contribution of the Industry to the Regional Economy
UNIVERSITI KUALA LUMPUR

MALAYSIAN INSTITUTE OF MARINE ENGINEERING TECHNOLOGY
THE STUDY ON THE LEISURE BOAT INDUSTRY IN LANGKAWI, KEDAH:

CAPABILITIES AND CONTRIBUTION OF THE INDUSTRY TO THE
REGIONAL ECONOMY
DISEMBER 2015
RESEARCHER:
MUHAMAD SYAFIQ MAULA AHMAD RAZHAN
SUPERVISORS:
ASSC. PROFESSOR HAMZAH A. JAMAL
MDM. AMINATUL HAWA YAHAYA
Dataran Industri Teknologi Kejuruteraan Marin

Bandar Teknologi Maritim, Jalan Pantai Remis
32200 Lumut, Perak
Tel: +605-690 9000
Fax: +605-690 9091/9092
Email: enquiries.mimet@unikl.edu.my
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MUHAMAD SYAFIQ MAULA
FOR EDUCATIONAL PURPOSES ONLY
LIST OF FIGURES ix
LIST OF FIGURES AND TABLES 3
LIST OF ABBREVIATIONS 4
ABSTRACT 5
CHAPTER 1 : INTRODUCTION
1.1 Background Research 6
1.2 Research Objectives 6
1.3 Problems Statement 7
1.4 Scope of Research 7
CHAPTER 2 : LITERATURE REVIEW
2.1 Introduction 8
2.2 Langkawi, the Jewel of Kedah 8
2.3 Defining Yacht as Leisure Boat 9
2.3.1 Types of yachts 9
2.4 Langkawis Recreational Boat Industry 9
2.4.1 Marinas 10
2.4.2 Brokers 11
2.4.3 Boats Husbandry 11
2.4.4 Shipyards 12
2.4.5 Repair and Construction Services 12
2.4.6 Surveyor 12
2.4.7 Special Marine Paint 13
2.4.8 Books/ Charts/ Flag/ Custom Made Flag/
Boat Labelling 13
2.4.9 Anchorage and Mooring Area 13
2.4.9.1 Hole in the wall Mooring 14
2.4.9.2 Telaga Harbour Mooring 14
2.4.9.3 Outside Telaga Harbour 14
2.4.9.4 Bass Harbour 15
2.4.10 Study and Training Institution 15
2.5 Malaysia Maritime Economy 15
2.5.1 The Internal and External Factors Impacting
the Yachting Industry in Malaysia 16
2.5.2 Recent Economical History of Boating Industry 17
2.5.3 The Growth of Recreational Boat Industry 18
2.5.4 International Boat Manufacturing Countries 19
CHAPTER 3: METHODOLOGY
3.1 Introduction 20
3.2 Research Design 20
3.3 Population and Sample 21
3.3.1 Survey Population 21
3.3.2 Sampling Design 21
3.4 Method of data Collection 22
3.4.1 Types of Questions in Questionnaire Design 22
3.4.1.1 Open Ended Questions 22
3.4.1.2 Closed Ended Questions 22
3.4.2 Design of Questionnaire 22
3.5 Data Processing and Analysis 23
3.5.1 Data Analysis using software SPSS 24
3.5.2 Descriptive Analysis 24
3.5.3 Statistical Mean 24
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3.5.4 Correlation Coefficient Analysis 25

3.6 Interview Session 26
3.7 Research Planning xx
3.8 Chapter Summary 26
CHAPTER 4: DATA ANALYSIS
4.1 Introduction 26
4.2 Purpose of Data Analysis 26
4.3 Data Analysis 27
4.3.1 Questionnaire 27
4.3.2 Interview Session 28
4.4 General Information of Data Analysis 29
4.4.1 Duration of the Business has been Operated 30
4.4.2 Location of the Business Located 31
4.4.3 Types of Business Offered in Langkawi 32
4.5 Issues of the Leisure Boat Industry in Langkawi 35
4.6 Challenges of the Leisure Boat Industry in Langkawi 38
4.7 Capabilities of the Leisure Boat Industry in Langkawi
to the Regional Economy 42
4.8 Contribution of the Leisure Boat Industry in Langkawi
to the Regional Economy 46
4.9 Correlation Analysis
4.9.1 Introduction of Correlation Analysis 49
4.9.2 Correlation Analysis between Issues and
Capabilities of Leisure Boat Industry 50
4.9.3 Correlation Analysis between Challenges and
Contribution of the Leisure Boat Industry 51
4.9.4 Correlations Analysis between Issues and
Challenges of the Leisure Boat Industry 51
4.9.5 Correlation Analysis between Section of
Capabilities and Contributions 52
4.9.6 Summary of Correlations Coefficient for the
Sections Issues, Capabilities, Challenges and
Contributions of Leisure Boat in Langkawi 52
4.10 Interview Analysis 54
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS

5.1 Introduction 58
5.2 Conclusion 58
5.3 Recommendation 62
REFERENCES 64
APPENDIX A 66
APPENDIX B 69
APPENDIX C 74
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Figure 1.4 The location maps of Langkawi 7

Figure 2.3.1 Types of Yachts 9
Figure 2.4 Marine Leisure Industry Sector 10
Figure 2.4.2 Location of Pippen Marine 12
Figure 2.4.4 Boustead Langkawi Shipyard Sdn. Bhd 13
Figure 2.4.8 Courtesy Flag for Langkawi Registered Vessel 14
Figure 2.4.9.2 Telaga Harbour Mooring Area 16
Figure 2.5.3 Gross Domestic Product by Industry Segment 18
Figure 3.7.1 FYP 1: Flow Chart and Activities xx
Figure 3.7.2 Process Flow of FYP 1 xx
Figure 4.3.1 15 Scale of Likert Scale 27
Figure 4.4 Langkawi Anchorage Area 34
Figure 4.5.4 Boustead Langkawi Sdn. Bhd. 37
Figure 4.6.4 Essex Credit 41
Figure 4.6.5 Singapore Yacht Show (SYS) 42
Figure 4.7.1 Yacht with Customized L.E.D. 45
Figure 4.7.2 Royal Langkawi International Regatta 2015 46
Figure 4.8.4 Fishing Location in Langkawi, Kedah xx
Table 2.5.1.1 Internal Factors Impacting Malaysian

Yachting Industry 16
Table 2.5.1.2 External Factors Impacting Malaysian
Yachting Industry 17
Table 3.7.1 FYP Part 1: Flow Chart and Activities xx
Table 4.4.1.1 Duration of Business 30
Table 4.4.1.2 Chart of Duration of Business Operated 31
Table 4.4.2.1 Table of Business Location and Quantity 31
Table 4.4.2.2 Chart of Location of Business 32
Table 4.4.3.1 Sample of Berthing Price at RLYC 32
Table 4.4.3.2 List of Respondent Based on Operations and
Services 33
Table 4.5.1 Mean Analysis for Issues of Marine Leisure
Industry 35
Table 4.5.2 Frequency Table for Highest Mean of Issues in
Marine Leisure Boat Industry in Langkawi Kedah 36
Table 4.5.3 Frequency Pie Chart of the Highest Mean of Issues
Section 36
Table 4.6.1 Mean Analysis for Challenges in Leisure Boat
Industry in Langkawi, Kedah 39
Table 4.6.2 Frequency Table of the Highest Mean of the
Challenges of Leisure Boat Industry in Langkawi 39
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Table 4.6.3 Frequency Pie Chart of the Highest Mean

of Challenges Section 40
Table 4.7.1 Table of Mean Analysis of Capabilities of Marine
Leisure Industry in Langkawi, Kedah 43
Table 4.7.2 Frequency Table of the Capabilities of Marine
Leisure Industry in Langkawi, Kedah 44
Table 4.7.3 Frequency Pie Chart of the Highest Mean of
Capabilities Section 44
Table 4.8.1 Mean Analysis for Contribution Sections 47
Table 4.8.2 Frequency Table of the Highest Mean of
Contribution Section 47
Table 4.8.3 Frequency Pie Chart of the Highest Mean of
Contributions Section 48
Table 4.9.1.1 Correlation Value 49
Table 4.9.1.2 Correlation Coefficient Formula 50
Table 4.9.2 Correlation Table between Section Issues and
Capabilities 50
Table 4.9.3 Correlation Table between Section of
Challenges and Contribution 51
Table 4.9.4 Correlation Table between Section of Issues and
Challenges 51
Table 4.9.5 Correlation Table between Section of
Capabilities and Contributions 52
Table 4.9.6 Correlation Relation between Issues, Challenges,
Capabilities and Contribution 52
Table 5.2.1 Capabilities of Leisure Boat Industry in Langkawi 59
Table 5.2.2 Internal Issues in Langkawis Marine Leisure
Boat Industry 60
Table 5.2.3 Challenges Faced by Local 61
Table 5.2.4 Contribution of the Industry to the Regional
Economy 61
AMIM Association of Marine Industry Malaysia

BNM Bank Negara Malaysia
NGO Non-Governmental Organisation
MIMA Maritime Institute of Malaysia
SWOT Strengths, Weaknesses, Opportunities and Threats
LYIR Langkawi International Yacht Registry
GDP Gross Domestic Product
SPSS Statistical Package for Social Science
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This research, The Study on the Leisure Boat Industry in Langkawi, Kedah: Capabilities and
Contribution of the Industry to the Regional Economy has the objectives to identify the issues
and challenges of Leisure Boat Industry in Langkawi and to determine the capabilities and the
contribution of this industry in generating the local economy. Marine leisure boat industry in
Langkawi, Kedah has slower growth compared to Singapore and Thailand. So, this research
will explore the potential of this industry to compete with regional countries. This research also
provides the government and private sector in Langkawi, Malaysia a recommendation to
improve this industry to be one of the important industry in South East Asia. However, the
government and private sector in Langkawi, Kedah must cooperate to solve the issues and
challenges that arise in this industry by taking and advantages on capabilities and
contributions from this industry.
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1.1 BACKGROUND RESEARCH

In July 1988, Malaysians Government approved the removal of 35% of import duty of leisure
boat as proposed by the Association of Marine Industries of Malaysia (AMIM) and Bank
Industri Malaysia. The implementation of 35% of import duty deductions blowing up the
Malaysias leisure boat industry. During this period, Bank Negara Malaysia (BNM) provided
financing for the boat purchase.
In July 1997, East Asia faced a financial crisis that raised fears of a worldwide
economic meltdown due to financial infection. As the crisis feast, most of Southeast Asia and
Japan saw collapsing currencies, undervalued stock markets and other asset prices, and an
impulsive rise in private debt.
Since 1997 Asian Economic Meltdown, Malaysia develop an action plan to recover the
financial crisis. Marine tourism is important in generating the national economy. Its
encouraging the local in developing and providing activities and support services such as ship
repair, maintenance, and berthing. This activity is important to the government in generating
the regional economy.
This research will explore the marine leisure industries which provide support services
such as marinas, shipyards, registrations, supplies and other related activities which is related
to boating services and focusing on Langkawi. This research also to study the capabilities and
the contribution of this industries in generating the growing of the local economy. Based on
the research, the final section makes the recommendation for the government and non-
governmental organisations (NGOs) in the region for future development of leisure boat
industry in Langkawi.
1.2 RESEARCH OBJECTIVES
This is a research study to examine the leisure boat industries in Langkawi, Kedah. The
primary objectives for this research are:
1. To identify the issues and challenges of Leisure Boat Industry in Langkawi, Kedah,
Malaysia.
2. To determine the capabilities and the contribution of this industry in generating the
local economy.
3. To give recommendation for the government to increase the number of yachts
registered under LYIR.
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1.3 PROBLEMS STATEMENT
Langkawi has the international-class marinas and boating infrastructure that promotes the
country to become a well-known boating destination. The Malaysian government provides
incentives to the operators who offer support services such as maintenance, and berthing.
Beside of that, the government also includes a tax exemption from the rental income of leisure
boat which included leisure yacht and craft. The government also spent millions of dollars in
building marinas and promote Langkawi as the marine tourism destination.
Langkawi has several marinas equipped with facilities of international standards, however the
participation of local in leisure boat industries is poor. There is a lack of attentiveness among
the local about the boat facilities and boating due to the lack of knowledge among the public
about the significance of the leisure boating industries in developing the national economy.
This research is to study whether the leisure boat industries are able to give an impact and to
study whether it is capable in developing the regional economy.
1.4 SCOPE OF RESEARCH
The research is focuses on leisure boat industry such as boat dealers, marina operators and
other sector related businesses that are directly involved in the services related to leisure boat
in Langkawi, Kedah, Malaysia. In this research, Langkawis recreational boat industry consist
of boat marinas, brokers, personal crafts and outboards, chandleries, shipyards, hardware
with chandlery, repair and construction services, books / charts / flags / custom made flags /
boat labelling , study and training institution, and surveyor.
Figure 1.4: The location of Langkawi, Kedah, Malaysia
(Source: http://www.endemicguides.com/images/Map/Malaysia_map/
Kedah/Langawi_T.jpg [Accessed on 29th March 2015])
Langkawi, the Jewel of Kedah is a case study for this research. Langkawi archipelago
consist of approximately 104 islands is located 30km off the Kedah coast. The island is part of
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the state of Kedah, which is adjacent to the Thailand border. Langkawi is the suitable location
for the research because it consists of marinas and services which are providing a world class
facility in boating industries.
2.1 INTRODUCTION
The Langkawis marine leisure boat industry is a sector can be regarded as a particularly to
the strategic sector. It provides the basic means of selling and support services for the leisure
boat in Langkawi, Kedah. Leisure boat industry provides high level of employment for various
subcontractors and it also operates as an important economic multiplier with spin-offs into
other sectors.
According to the Nazery Khalid et al. (2007), the Malaysian government has recognised the
important of the marine tourism by the developing and providing encouragement to operators
activities and providers of supporting facilities such as berthing and maintenance.
The government also supporting the industry by tax exemption from rental income of leisure
boat and yachts. The government has done this effort as a result of the pleasant island of
Langkawi has turn to haven for the yacht.
In this sense, Langkawis leisure boat industry can be defined as a very complex support
services sector composed of an array of different sub-sectors.
2.2 LANGKAWI, THE JEWEL OF KEDAH

On 15 July 2008, Sultan Abdul Halim of Kedah had consented to the change of name to
Langkawi the Jewel of Kedah in conjunction with his Golden Jubilee Celebration. Langkawi is
an archipelago of 104 islands in the Andaman Sea, some 30 km off the mainland coast of
northwestern Malaysia. The islands are a part of the state of Kedah, which is adjacent to the
Thai border.
According to the Langkawis district officers, the number of populations in Langkawi is 103,075
persons. The largest of the islands is the eponymous Pulau Langkawi with a population of
some 64,792, the only other inhabited island being nearby Pulau Tuba. The populations of
Langkawi are Malays and other ethnic groups consist mainly Chinese, Indians and Thais.
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2.3 DEFINING YACHT AS LEISURE BOATS

According to Langkawi International Yacht Registry Act 2003, yacht means a yacht used for
sports, pleasure and recreation, and includes a commercial yacht and private yacht. Yacht is
different if compared to the ship because it is mainly used for the leisure purposes. Generally
yacht came in apparent of luxury, or recreational vessel. Lately the term came with motor boats
for primarily pleasure purposes as well. Generally, the range of the length is from 39 feet up
to hundreds of feet.
2.3.1 TYPES OF YACHTS
Types of Yacht
Sailing Yachts Motor Yachts
Example: Day Cruiser

Example: Day Sailing
Yacht, Weekender Yacht,
Yacht, Weekender Yacht,
Cruising Yacht, Sport
Cruising Yacht, Luxury
Fishing Yacht and Luxury
Yacht and Racing Yacht.
Yacht.
Figure 2.3.1: Types of Yachts
2.4 LANGKAWIS RECREATIONAL BOAT INDUSTRY
The Langkawis recreational boating industry consist more than 30 companies that provide
goods and services of value to the local boaters and international boaters. The industry can
be segmented into a number subsectors in the boating value chain.
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Marine Leisure
Industry
Market Support Services
Malaysian
Visiting Yachts Marinas Shipyards
Market
Superyachts Charter Resorts Registrations
Marine Tourism Insurance Training
Supplies
Figure 2.4: Marine Leisure Industry Sectors (Shen, 2010).
2.4.1 MARINAS
Marinas provide wide ranges of product and services of the boating subsectors, either directly
or by housing other co-located companies. They are differentiated from other subsectors by
their location on water and usually the facility of moorage space. They often sell fuel, boats,
boating accessories, food and other sundries. They may have accommodation available,
either in a building or campground. In such cases, the marina may be a secondary business
to the accommodation business. Some of the example Marinas available in Langkawi are
Telaga Harbour Marina, Rebak Marina, Royal Langkawi Yacht Club, and Awana Porto Malai
Resort.
2.4.2 BOAT BROKERS
This subsectors sells predominately used boats, although new boats are possible. They differ
from boat sales and service stores in their more limited range of services. In Langkawi, there
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are 2 companies who provide the service of brokerage. Pippen Marine which is located in
Royal Langkawi Yacht Club and Dynamite Cruises and Travel Sdn. Bhd.
FIGURE 2.4.2: Location of Pippen Marine
(Source: http://yachthub.com/yacht-broker-boatdealer
/kedah/langkawi/pippen-marine/50 [Accessed on 29th March 2015]
2.4.3 BOATS HUSBANDRY
Boats husbandry or chandleries is refer to a service by an agent which is appointed by the

owner of the ship to make necessary repairs, boats housekeeping, attend to the management,
equipment, and other concerns of the ship which is usually authorized to act as the general
agent of the owners, in relation to the ship in her home port. Examples of chandleries are
Peninsular Yachts and Nautical Bits Sdn. Bhd.
2.4.4 SHIPYARDS
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Shipyards is a place where the yachts is being repaired or maintenance. Boustead Langkawi
Shipyard is one of the example of shipyard located in the Langkawi. Formerly, Boustead is
known as Wave Master. Boustead Langkawi Shipyard may afford full superyacht and mega-
yacht repair and refit facilities. This shipyard also has berthing facilities for yachts from 13 to
70 meters (Source: http://www.blsy.com.my). Another example of shipyard is B&V Marine Sdn
Bhd. which is formally known as Asia France Marine Ltd.
FIGURE 2.4.4: Boustead Langkawi Shipyard Sdn. Bhd.

(Source: http://www.blsy.com.my [Accessed on 15th April 2015])
2.4.5 REPAIR AND CONSTRUCTION SERVICES
Boats need to be maintenance and repairs. Repair and maintenance services can be done at
the sea or in the port according to the requirement needed. Ship-owner may choose to hire a
service for repair and construction for the boat. Some of the example are Elite Yacht and
marine Services, Electronic Repairs and Parts, and Semangat Hi-Tech Sdn. Bhd.
2.4.6 SURVEYOR
In Langkawi also there is a service in performing marine surveys for pre-purchase and
insurance inspections. The survey also available for the existence boats for purchasing the
insurance as required from the insurer. Champion Marine Services Sdn. Bhd. is the only single
surveyor available based in Langkawi.
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2.4.7 SPECIAL MARINE PAINT
Varieties of international paints, anti-fouling, varnishes and Sikkens is available at the

International Paints which is located at Jalan Keilbang, Kuah. Some of the chandleries and
most of hardware shops with chandleries is also available in purchasing this special marine
plant. The quality of this paint is high but the price is expensive.
2.4.8 BOOKS / CHARTS / FLAGS / CUSTOM MADE FLAGS / BOAT

LABELLING
One of company who provide charts and other boat accessories is S.K. Intertrade. S.K.
Intertrade is allocated in Kuah is a place where they are selling sea charts, navigational book
and flags, custom made flags and also boat labelling. The other services provided are cruising
guides, large digital scanning, AutoCAD colour plotting, book binding, laminating and more.
FIGURE 2.4.8: Courtesy Flag for Langkawi Registered Yacht

(Source: http://www.burmaboating.com/aventure [Accessed on 15/4/2015])
2.4.9 ANCHORAGE AND MOORING AREA
There are plenty of anchorage area and mooring area available around the Langkawi. Some
of them are free. Some of the anchorage area has a good facilities provided for the yachters
such as rubbish disposal, showers and toilet, wireless internet, fuelling and many more.
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2.4.9.1 HOLE IN THE WALL MOORING
Located at Langkawi Geopark in Kilim Mangrove Forest. The service provided such as free
water, internet at half hour rate if own laptop, free transport for customer to/from Kalim Jetty,
security and boat watch. The mooring fees is RM300 per month and preferred for a long term.
2.4.9.2 TELAGA HARBOUR MOORING
Telaga Harbour Mooring charges is according to the length of overall. It is implemented for
both monos and catamarans. If the length is below than 12 meters, the charge is RM542 per
month. If the length is over than 12 meters, the charge is RM677 per month. Mooring fees is
included dinghy landing, water, hot showers, toilets, wireless connections, rubbish disposal,
yachters lounge with TV and books.
FIGURE 2.4.9.2: Telaga Harbour Moorings Area
(Sources: https://ssl.panoramio.com/photo/11766380
[Accessed on 15th April 2015])
2.4.9.3 OUTSIDE TELAGA HARBOUR
It is protected behind two sand islands. From here, it is 300 meters to dinghy at Telaga Marina.
The landing fees is RM5 per day or RM20 per week which is including hot showers, toilet,
rubbish disposal & yachters lounge with TV and books. Wireless internet is RM5 per day,
RM18 per week or RM30 per month.
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2.4.9.4 BASS HARBOUR
They are patches where the anchor will not hold in gusts over 20 knots, which may occur from
May to November. The fees is RM8 per day for landing the dinghy at Royal Langkawi Yacht
Club. Showers and toilets cost extra RM5 per day. The wireless internet facilities is RM35 per
month.
2.4.10 STUDY AND TRAINING INSTITUITION
This subsector provide educational program for boaters. Some of the training provided by RYA
Training Center are Day Skipper Course, Coastal / Yacht Master Course, and Yacht Master
Ocean Course. This training center is owned and managed by Barry Wickett.
RYA is a well-known training centre around the world which provided the training on the
yachting. Some of the training is focusing on weather forecasting, victualling, engine
maintenance, sail selection and handling, passage planning, watch keeping, navigation and
pilotage.
2.5 MALAYSIA MARITIME ECONOMY
Maritime Institute of Malaysia (MIMA) study in 1994 found that maritime sector contributed
13% of the total value of output to the economy in 1990 ( Abdul Aziz, Jamli and Wong, 1997).
Petroleum refineries and other petroleum and coal products and inlane marine related
industries contribute 5% in the economy. Without this sector, the contribution to the industry
is around 8%.
Since 1957, the development of Malaysian manufacturing sector has become increasingly
important. The rapid growth recorded in the 1970s and 1980s. From a share of 13.1% of GDP
in 1970 it is increasing to 28.8% in 1992. In 1996, the amount is increasing to 34%.
According to Malaysias Economy in the Nineties by Jomo K.S., manufacturing sector has
grown in significance as a foreign exchange earner in line with the governments intention of
reducing Malaysias dependence on primary exports. From 11.9% share of exports in 1970 it
grew to 69.8% in 1992 and to about 80% in 1997.
The future of Malaysias maritime economy is mainly a function of the future of Malaysian
trade, since the nations foreign trade and even domestic trade between Peninsular Malaysia
and East Malaysia are almost completely dependent on the availability of maritime
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transport facilities. It would not be an exaggeration to say that perhaps 90% of the total value
of the countrys external trade is shipped by the way of maritime transport. In terms of volume,
an even higher proportion would be depenent on maritime transport (Othman, 1996).
2.5.1 THE INTERNAL AND EXTERNAL FACTORS IMPACTING THE

YACHTING INDUSTRY IN MALAYSIA
SWOT analysis is a structured method used to estimate the strengths, weaknesses,

opportunities and threats in the research. According to Nazery Khalid in Setting Sail Setting
Sail: Positioning Malaysia as a Yachting Haven (2008), yachting in Malaysia do has its own
internal and external factors which give an impact in the yachting industry in Malaysia.
STRENGTHS WEAKNESSES
Sufficient yachting infrastructures Lack of critical mass of local

and support services. boaters.
Naturally well-endowed i.e. long Lack of coordination among
coastline, calm waters, islands, marinas in organizing events.
year-long sailing. Lack of sustained marketing /
Many land-based attractions to promotion.
leverage on. Little emphasis on environmental
Strong Government support. issues.
Relatively low-cost advantage. Some marinas poorly located (i.e.
Tax incentives for yacht and boat too far from commercial centers).
purchase. Lack of financing support to buy
boats.
Too many marinas, too few
attractions.
TABLE 2.5.1.1: THE INTERNAL FACTORS

IMPACTING MALAYSIAN YACHTING INDUSTRY
OPPORTUNITIES THREATS
Increasing popularity of marine Stiff competition for tourist dollars.

tourism. Keen competition from regional
Growing yachting traffic in SEA marinas i.e. Vietnam, Thailand,
region. Singapore.
More high-end yachts sailing in the Capacity overhang due to glut of
region. marinas.
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Growing public awareness / interest. Perception of threat in regional

Tourist influx from tourism waters.
campaigns (i.e. Visit Malaysia Year Environmental concerns due to
2007). reckless development.
Strategic location to be in the loop of Exposed to natural disaster (i.e.
races. tsunami.)
TABLE 2.5.1.2: THE EXTERNAL FACTORS

IMPACTING MALAYSIAN YACHTING INDUSTRY
2.5.2 RECENT ECONOMICAL HISTORY OF BOATING INDUSTRY

The value of the leisure boat shipment was $18.21 billion in the year 20019 and expected to
grow $27.8 billion by 2015 according to Global Recreational Boating Industry Analysis and
Forecast 2010-2015 by Lucintel. It is expected to grow 8.9% of the compound annual growth
rate in the five years (2010-2015). The growth is expected to be the biggest in Europe and
Asia Pacific region. This is because of the increasing of the demand for the luxury cruiser and
mega yacht in Europe.
During the economic crisis, boating industry suffered like almost all other industries. In 2009
the leisure boat industry was down in every continent due to the economic recession. This
recession gives a big impact to the European countries and Asian countries also. European
countries faced the biggest troubles during the recession compared to the other countries.
Poland is for an example.
According to the Polish Boating Industry Report 2010, the declination of production in Poland
is approximately more than 50%. The rate of ability to manufacture 22,000 boats decrease to
10,000. The reducing of the number in production reduce their employment by up to 70%.
Some of the firm did not survive in the crisis and have been closed or sold to the competitors.
Some of the firm are Norwegian Askeladden (bankruptcy and rebuild with new owner),
German Dehler (owned by Hanse Yachts) and French Dufour and Grand Soleil (merged with
Bavaria).
Malaysias leisure boat industry grow significantly from 1990 to 1997. During this period, Bank
Negara Malaysia provided financing for boat purchase to the local. On 1997, Malaysia is also
affected by the economic crisis in Asia, which is started from Thailand. Since 1997, there has
been no boat financing provided by the bank. The Malaysian boat market suffered extremely
due to the economic crisis. (Shen, 2010)
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2.5.3 THE GROWTH OF RECREATIONAL BOAT INDUSTRY
Recreational boating is a significant industry to the Canadian economy. According to The

Economic Impact of Recreational Boating in Canada 2012, the recreational boating sector
contribute $5 billion to the national GDP. The revenue from this industry is about 8.9 billion.
Canadas recreational boating industry consist of 4,400 companies that provide goods and
services to the boating industry. It is consist of accessories manufactures, boat and
accessories dealers, marina operators, repair and maintenance shops, schools and boat
clubs, and other interrelated industry.
Figure 2.5.3: GROSS DOMESTIC PRODUCT BY INDUSTRY SEGMENT

(Source: The Economic Impact of Recreational Boating in
Canada 2012)
The recreational boating industry also giving an impact to the Canadian economy such as
fishing, outfitters, and tourism. According to the study, in 2010 recreational anglers spend $1.1
billion on boating equipment, another $254 million on fishing equipment, and another $200
million on fishing supplies. Fishing vacation expenditures totalled more than $2.3 billion; $395
million on package deals, $194 million on fishing services, $925 million on transportation, and
$789 million on food and lodging.
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2.5.4 International Boat Manufacturing Countries
In terms of domestic boat building United States of America is the biggest boat building country
in the world by far. North American boat market has always been bigger than the market in
Europe but Europe exceeded North American market in dollar value for the first time in 2010.
In the year 2010 there was 517 630 boats built in the USA only and the next biggest
manufacturing country was France with 24 739 units built mainly because of the big brand
Groupe Beneteau which is one of the largest boat manufacturing companies in the world.
After those two biggest the next on the list are Poland with 16 610 units and Italy with 12 010
units. Italy has also two of the biggest companies in the world. Azimut-Benetti owns numerous
boat brands and is the world leader in private luxury boating. Ferretti Group is also a major
and very important yacht building company from Italy. (Kleinitz, 2012.)
When observing the total turnover of boating industry and the number of companies around
the world USA still remains the biggest with the turnover of 68,741.87 million euros and 1125
boat builders.
Next biggest in turnover is United Kingdom with 3,543.30 million euros but relatively small
amount of 380 boat builders. Italy and France complete the top four with the turnovers worth
3,336.00 and 2,950.50 million euros.
Those two on the other hand do not have as many boat builders as the next two on that list;
Turkey with 450 boat builders and Australia and Germany both with 400 boat building
companies. (Kleinitz 2012.)
19
3.1 INTRODUCTION
Research Methodology is a collective term for the structured process of conducting research.
Research involves formulating the problem to be investigated, selecting a suitable research
design, choosing and applying appropriate procedures for data collection and analyzing and
communicating the process and findings through a written report. According to Beer (1999),
the research methodology refers to the research decisions taken within the framework of
specific determinants unique to the research study.
This chapter will focus on the nature of the research design, sampling procedure, data
gathering methods and measuring instruments, data analysis and ethical considerations.
Integration of trustworthiness, validity, reliability and triangulation will take place throughout
this chapter. The methodological theory will also be linked to the actual fieldwork conducted
by the researcher in order to indicate the implementation of the proposed goal and objectives
listed in chapter one.
This chapter therefore focuses on how the research goal and can be implemented by using
specific research methodological procedures and methods. In analyzing and presenting data,
SPSS was used. SPSS comprises remarkable capabilities and flexibility in analyzing huge
data within a short time.
3.2 RESEARCH DESIGN
Research design is a framework or blueprint that specifies the procedures necessary to obtain
the information needed to structure and solve the research problem (Suhaili, 2014). According
to Madata (2011), research design is the base which proceeds towards the study of the
problem after formulating the research problems. A research design can therefore be said to
be an arrangement of conditions for the collection and analysis of data. In other words, the
research design is very important because it determines the success or failure of research.
In addition, the research design articulates what data is required, what methods are going to
be used to collect and analyze this data, and how all of this is going to answer the research
question. Design process begins by defining the research problem followed by the research
approach: a conceptual framework, research questions, hypotheses, and the information
needed.
20
For this research, I am using inferential statistics to analyze the data. The sample is taken
from the representative population of people and then estimate the result to the entire
population. By using this type of statistics, it allow the researches to make well-reasoned
inferences about the populations in questions. By using this method, the larger the sample
size, the better the result. There are trade-offs in time and money when it comes to obtaining
a large sample. So, there is a few limitations for this research that limit the number of data
gained.
3.3 POPULATION AND SAMPLE
For this research, the survey population and sampling design must be related to the title of the
research to achieve its objective and to make sure the distribution of the questionnaire is still
inside the scope.
3.3.1 SURVEY POPULATION
A population is defined as all elements that include such individuals, object

and events that meet the sample criteria for inclusion in a study. Hungler (1999),
defined population as the totality of all subjects that conform to a set of specification,
comprising the entire group of person that is of interest to the researcher and to whom the
research result can be designed (as cited by Ibrahim, 2013).
The target population comprised Langkawis marine leisure industry. It is including

marinas, brokers, chandleries, hardware, repair and maintenance, construction services, and
surveyor. The researcher used a random selection process to build the survey population
(i.e. the people or company whom will participate in the survey).
3.3.2 SAMPLING DESIGN
This research is based on purposive sampling technique, the alternative use of

probability sampling is not considered due to limited time and resources. Many researchers
recommended that the sample size larger than 30 and less than 500 are appropriate for
maintain the quality and reliability of the research. Since, the marine industry in the Langkawi
are scattered the researcher used the random sampling method at giving every sector in the
target population have an equal chance of being selected.
The questionnaires were distributed to at least 50 sectors in Langkawi which is related

to the marine leisure industries and were identified through the survey approach at the location
of the research area.
21
3.4 METHOD OF DATA COLLECTION
The method of data collection flows from the research design. Questionnaires are
commonly used to obtain important information about the population. Each item in the
questionnaire was developed to address a specific objective, research question or hypothesis
of the study. In this study, the questionnaires will be tick by the interviewer in the interview
session with the leisure boat sector representative in the Langkawi. Besides that, a semi-
structured interview was also being carried out with the selected respondents .
3.4.1 TYPES OF QUESTIONS IN QUESTIONNAIRE DESIGN
There are two types of questionnaires, which is Open Ended Format and Closed
Ended Format.
3.4.1.1 OPEN ENDED QUESTIONS
Open ended questions are those unstructured question in which possible answer are not
suggested, and the respondent answers it in his or her own words. Such questions usually
begin with a how, what, when, where, and why. In other words, there are no predetermined
set of responses, and the participant is free to answer however he chooses.
The open-ended questions, it has some advantages in comparison to close ended,

such as allowing respondents to include more information, including feelings, attitudes and
understanding of the subject. This allows researchers to better access the respondents true
feelings on an issue.
3.4.1.2 CLOSED ENDED QUESTIONS
Closed-ended questions are more easily analyzed. Every answer can be given a
number or value so that a statistical interpretation can be assessed. Closed-ended questions
are also better suited for computer analysis. Obviously, there needs to be sufficient choices to
fully cover the range of answers but not so much that the distinction between them becomes
unreliable.
For this study, researcher used the design of Importance Question and Likert Question as to
measure the variable associated with the marine leisure industry.
22
Basically in importance questions, the respondents are usually asked to rate the importance
of a particular issue, on a rating scales of 1 to 15. These questions can help researcher
understand things that hold significance to the respondents and help researcher to grasp what
are the things that hold importance to the respondents.
Likert scales are a common ratings format for surveys. Respondents rank quality from high to
low or best to worst using five, seven, or fifteen levels. Likert-Scales are given scores or
assigned a weight to each scale, usually from 1 - 15. The purpose of the Likert-Scale is to sum
the scores for each respondent (the response average), and the intent of the Likert-Scale is in
that the statement will represent different aspects of the same attitude.
3.4.2 DESIGN OF QUESTIONNAIRE
The questionnaire consisted four sections which enabled to collecting data. Those
sections are designed based on research question to achieve the research objectives.
The questions are divided into following sections.
I. Section A contained business background information. The example of the data are
the name of the business, location of the business and etc.
II. Section B contained descriptive questions to identify the issue and challenges of
leisure boat industry in Langkawi. The Likert Scale is used to answer this questions.
III. Section C contained questions to identify the capabilities and contribution of the
leisure boat industry to the regional economy.
3.5 DATA PROCESSING AND ANALYSIS
The empirical data was collected for the study and analyzed in detail. Some descriptive
analyses were conducted. The first step for the data analysis was descriptive analysis. The
researcher provides forms of analysis useful for the evaluation of data obtained from the
questionnaires.
They included the following:
Respondents
The objective of the study
Profile of the respondents
Issues and challenges of the business in leisure industry
Capabilities and contribution of the leisure industry sector to the regional
economy.
23
3.5.1 DATA ANALYSIS USING SOFTWARE SPSS

Data analysis is the process of systematically applying statistical and logical
techniques to describe, illustrate, and evaluate the data (Anonymous, 2014). In this study, it
requires processing and analyzing all the answers by respondents feedback using statistical
method namely Statistical Package for the Social Science (SPSS) Version 21.
Generally, SPSS is a computer program used for survey authoring and deployment,
data mining, text analytics, statistical analysis, and collaboration and deployment SPSS is
among the most widely used programs for statistical analysis in social science. Descriptive
statistics are often used to describe the basic features of the data in a study. It provides simple
summaries about the sample and the measures. Together with simple graphical analysis, form
the basis of virtually every quantitative analysis of data.
The SPSS has the versatile capabilities and flexibilities of analyzing huge data within
seconds and generating an unlimited range of simple and sophisticated statistical results
including simple frequency distribution tables, polygons, graphs, pie charts, percentages,
cumulative frequencies, binomial and other distributions.
3.5.2 DESCRIPTIVE ANALYSIS

Descriptive statistics generally include measures of central tendency (mean, median, and
mode) and measures of dispersion (variance, standard deviation, etc.) (Source: Descriptive
vs. Inferential Statistics: Whats the Difference? 2011).
For this research, the background of the sample is on the industries which are related to the
marine leisure. It is involved marinas, yacht brokers, dinghies, chandleries, shipyards,
hardware, repair and construction services and many more which related to the leisure boat
activities. For this research, estimated 50 questionnaires will be distributed to the leisure
boat industries and the scope for the sample is located in Langkawi, Kedah only.
The questionnaire for this research is adopted from An Examination of the Marine Tourism
Business Sector in the West of Ireland: Capabilities and Contribution to Regional Economy by
Carina Ginty.
Section B consisted of issues and challenges of leisure boat industries while section C
consisted of capabilities and contribution of the leisure boat industries to the regional economy.
3.5.3 STATISTICAL MEAN
24
The statistical mean has a wide range of applicability in various types of experimentation. This
type of calculation eliminates random errors and helps to derive a more accurate result than a
result derived from a single experiment.
Statistical mean is popular because it includes every item in the data set and it can easily be
used with other statistical measurements. However, the major disadvantage in using statistical
mean is that it can be affected by extreme values in the data set and therefore be biased. The
statistical mean is widely used not only in the fields of mathematics and statistics, but also in
economics, sociology and history. It gives important information about a data set and provides
insight into the experiment and nature of the data.
The other terms used to measure central tendency (an average) are median and mode. In a
normal distribution the statistical mean is equal to median and mode. The statistical mean can
also be used to interpret statistical data. Some important properties make statistical mean very
useful for measuring central tendency.
For this research, the statistical mean will be implemented to establish the normal distribution
for these sector:
a) Capabilities of Leisure Boat Industry in Langkawi

b) Challenges of the Leisure Boat Industry in Langkawi
c) Contribution of Leisure Boat Industry in Langkawi
d) Issues of the Leisure Boat Industry in Langkawi
3.5.4 CORRELATION COEFFICIENT ANALYSIS
A correlation coefficient is a statistical measure of the degree to which changes to the

value of one variable estimate change to the value of another. Positive correlation is happened
when the value increases or decreases in simultaneously. In negatively correlations, the value
of one increases as the value of the other decreases.
Correlation coefficients is the values between +1 and -1. A coefficient of +1 indicates a perfect
positive correlation: A change in the value of one variable will estimate a change in the same
direction in the second variable. A coefficient of -1 indicates a perfect negative correlation: The
changes in the value of one variable estimate a change in the opposite direction in the second
variable. Lesser degrees of correlation are expressed as non-zero decimals. A coefficient of
zero indicates there is no visible relationship between fluctuations of the variables.
25
From the research, the relations need to be tested are:
R1: Is there any relation between Issues and Capabilities Section?
R2: Is there any relation between Challenges and Contributions Section?
R3: Is there any relation between Issues and Challenges Section?
R4: Is there any relation between Capabilities and Contributions Section?
3.6 INTERVIEW SESSION
The interview session with Malaysia Marine Department will give the real view of the
current situation about the Langkawi Marine Leisure Industry.
3.7 Chapter Summary
Chapter three explained the research methodology and research design used in the
study. It has presented the survey population, area of the research where the study was
conducted. Sampling design and procedures used in the study have also been covered.
Measurement procedures, methods of data collection for the study and the methods which
were used to process and analyze the data collected have also been explained. The expected
results of the study were also explained in this chapter.
4.1 INTRODUCTION
This research The Study on Leisure Boat Industry in Langkawi, Kedah: Capabilities and
Contribution of the Industry to the Regional Economy has been done in Langkawi Island,
Kedah. 30 samples have been taken randomly to answer questionnaire provided to achieve
the objectives of this research. Interview session also has been done by the Malaysia Marine
Department to develop a recommendation as a suggestion for the government to improve the
marine leisure industry in Langkawi.
26
The data collected from the questionnaires is analysed by Statistical Package for the Social
Science (SPSS) software to gain mean, standard deviation and correlation to fulfil the
expected outcome for this research.
4.2 PURPOSES OF DATA ANALYSIS
The main purposes of the data analysis are:
To identify issues and challenges of Leisure Boat Industry in Langkawi, Kedah

To determine the capabilities and contribution of this industry in generating the local
economy
To provide recommendation for the government to increase the number of yacht
registration under Langkawi International Yacht Registry.
4.3 DATA ANALYSIS
Two methods used in gathering data for this research. Questionnaire and interview
session.
4.3.1 QUESTIONNAIRE
A questionnaire has been distributed in several places in Langkawi such as Kuah, Ayer
Hangat, Padang Matsirat and its randomly to any business which is related to the marine
industry such as marinas, brokers, chandleries, hardware, and etc. 30 samples has been
collected around Langkawi for this research.
In the questionnaire, there are two types form of questions; open ended and close ended
questions. In the open ended section, respondents need to fill up business details such as
duration of business operated, year of the business operated and etc.
In the close ended questions section, respondents need to rate a series of questions based
on the Likert Scale. Likert scale is a psychometric scale that describes the degree of
agreement of the question. The general scale consists of five ranges consist of Strongly
Disagree, Disagree, Natural, Agree and Strongly Agree.
FIGURE 4.3.1: 15 SCALE OF LIKERT SCALE
To achieve this objectives, the questionnaire has been developed according to several
sections.
27
Section A: General Information
- Business duration
- Business location
- Business / services provided
Section B: Issues and Challenges
- Capital to expand the business

- Budget for marketing and promotion
- Condition of facilities and equipment
- Skilled workforce
- Growth in regional demand
- High cost of labour
- Competition between regional nations
- Boat ownership among the local
- Government responsibilities in promoting destination
- Financing support from banks
- Increasing of foreign labour
- Legislation applied in Langkawi
Section C: Capabilities and Contribution
- Capability in boat building and manufacturing

- Capability in repairing, refitting and maintenance
- Offering boat sales and brokerage
- Offering yacht chartering
- Capability to provide material and services
- Providing tourism promotion along business
- Offering chandleries and management in Langkawi
- Competitive market to the regional country
- Contributing to national GDP
- Generating new market for the marine industry
- Promoting yachting event in Langkawi
- Promoting Langkawi as the yachting and sailing destination
- Promoting Langkawi as fishing and tourism industry
The data is analysed by using Statistical Package for the Social Science (SPSS) software in
order to define the outcome from the data collected.
4.3.2 INTERVIEW SESSION
28
Interview session has been done with Marine Department of Langkawi to fulfil the expected
outcome of this research. The expected outcomes are:
Developing an action plan for the government to increase the number of boat
registration in Langkawi
Developing a SWOT analysis to make an improvement of the local marine industry
and making Langkawi competitive able to the regional countries such as Singapore
and Thailand.
The questions developed for the interview session is a guideline to achieve objectives for this
research. The questions for the interview session are:
1) Did Langkawi Yacht Industry has high technology facilities?

2) Did the government plays a role in promoting Langkawi as the leisure boat
destination?
3) How many yachts has been registered with Langkawi International Yacht Registry
(LIYR)?
4) How many percentage of local yacht registered under LYIR?
5) What are the advantages registered with Langkawi International Yacht Registry?
6) How much is the cost of register for a yacht under LYIR?
7) What are the documents need to prepare if the yacht registered under LIYR to sail
in other countries?
8) Is the boat registered under LIYR need to inform home port if the boat want to sail
overseas?
9) Did yacht registered under LIYR has limited country to sail?
10) If the foreigner registered their yacht under LIYR, does he has to comply the law
designated by Malaysia government only or also need to comply with the local law
of the previous country of the origin applicants?
11) The owner of the yacht registered under LYIR is subjected to Langkawi
International Yacht Registry Act or Malaysia Shipping Ordinance 1952, or both?
12) Does the foreigner registered under LIYR charged the same rate as local
residents who registered yacht under LIYR?
13) Does the applicant have to attend any courses to register their boat under LYIR?
14) Does the operators for the yacht registered under LIYR require any
qualification/certificate/ license to operate yacht?
15) Does yacht registered under Langkawi International Yacht Registry is covered
under Malaysian.
16) If the owner of a sailing boat at risk, how the owners want to get help?
29
17) What are the challenges faced by the Marine Department on the issue of a yacht
in Langkawi?
This questions has been developed to achieve the objectives of this research and as a
guideline to develop suggestions and recommendations for the government in improving the
leisure boat industry in Langkawi.
4.4 GENERAL INFORMATION DATA ANALYSIS
In the section of general information, the data will be analysed by the duration of the business
has been operated, the location of the business operated and types of business offered. The
data has been collected randomly and 30 samples of respondents has been taken for this
research.
4.4.1 DURATION OF THE BUSINESS HAS BEEN OPERATED
In the 30 samples that has been taken, 43.33% is belong to the companies or businesses
which has been operated more than 13 years. There are a lot of advantages for the companies
which has been operated in a longer time.
Duration of Business Quantity
1 until 3 1
4 until 6 3
7 until 9 4
10 until 12 9
13 and above 13
TABLE 4.4.1.1: TABLE OF DURATION OF THE BUSINESS
The first advantage is the longer the business has been operated, the broader and deeper
network of contacts they had. The older of the business operated created numerous of
personal or company network in their business. So, it could increase the wider network for the
company.
The second advantage is the experience. Other companies have more experience compared
to the new one. The company might learn from the past and the company might produce a
30
skilled workforce in their company. So, the company might have a professional labour, skill
which is not available in the other company. So, it is beneficial to the company.
The old company might have a better workforce. Older companys manager or leader can not
only pull from their larger personal network, but they also have the advantage of observing
other peoples work ethics from afar. They can potentially watch the other tendencies of others
over years or even decades, and then choose the best employees to surround themselves
with. So, this advantage is hard to gain in the new business operated.
Duration of Business Operated (years)

15
Number of Business
13
10
9
5
1 3 4
0
Duration of years
1 to 3 4 to 6 7 to 9 10 to 12 13 above
TABLE 4.4.1.2: CHART OF DURATION OF BUSINESS OPERATED
4.4.2 Location of the business located
According to the data analysed, around 17 of samples is taken in Kuah, Langkawi. Kuah is the
main town of Langkawi. Kuah is located at the southeast of the island and it is the arrival point
for most of the ferries.
Location Quantity
Kuah 17
Ulu Melaka 0
Bohor 0
Ayer Hangat 4
Kedawang 0
31
Padang Matsirat 2
Other: 7
TABLE 4.4.2.1: TABLE OF BUSINESS LOCATION AND QUANTITY
One of the main reason why most of business is located at Kuah because of the location of
Royal Langkawi Yacht Club (RLYC) which is also located in Kuah. Royal Langkawi Yacht Club
is one of the excellent marina which is available in Langkawi.
The marina can accommodate mega yachts up to 70 meters besides of providing electricity,
fuel, Wi-Fi internet and other facilities to the yachts and yachters. So, the services provided by
this marina attracts many tourist to berth their yacht in this marina. Immigration and Customs
also located in Kuahs Jetty which only few minutes walk from RLYC marina.
LOCATION OF THE BUSINESS
7
Kuah
Ulu Melaka
Bohor
Ayer Hangat
2
Kedawang
0 17
Padang Matsirat
Other:
4
00
TABLE 4.4.2.2: CHART OF LOCATION OF THE BUSINESS
4.4.3 TYPES OF BUSINESS OFFERED IN LANGKAWI
There are three marinas in Langkawi, Rebak Marina, Royal Langkawi Yacht Club and Telaga
Harbour Marina. Some of the marinas facilities are providing fuel, water and electricity, Wi-Fi,
32
maintenance services, laundry, telephone and fax services and etc. Berthing fees depend on
the marina itself. Below is an example of berthing fees at Royal Langkawi Yacht Club.
Price in RM Per day Per week Per month
42 feet Mono Hull 55.00 343.75 1342.50
42 feet Catamaran 60.50 378.12 1476.75
*Price based on type and length of the boat. Accurate fees need to request from RLYCs
office.
TABLE 4.4.3.1: SAMPLE OF BERTHING PRICE AT ROYAL LANGKAWI YACHT CLUB.
Some of the marinas provided chandleries services. Chandleries or ships husbandry is a

service providing maintenance and supplies for boat or ships in port. They act as general agent
of all the co-owners of a ship. They have contracts on behalf of the co-owners for all necessary
services, equipment and supplies. Some of the general functions of the ships husbandry are
to direct all proper repairs, equipment and outfits of the ships, boat cleaning, providing
supplement for the yacht such as fresh water, electricity and garbage disposal and many more.
Type of Business Operated
Marinas -
Brokers -
Dinghies / Inflatables / Personal Craft and Outboards 2
Chandleries 1
Shipyards -
Hardware 20
Repair 10
Maintenance 6
Books/charts/flags/boat labelling -
33
Surveyor -
Other 5
TABLE 4.4.3.2: LIST OF RESPONDENTS BASED ON OPERATIONS AND SERVICES.
Yachters has choices to berth their yacht. They have options to berth their yacht at the
marinas which is well equip with facilities or they can berth for free at certain anchorage area
in Langkawi area.
FIGURE 4.4: LANGKAWIS ANCHORAGE AREA
(SOURCE: http://www.langkawi-gazette.com /Anchorages/images/anchorages.gif

[Accessed on 15 April 2015])
34
4.5 ISSUES OF THE LEISURE BOAT INDUSTRY IN LANGKAWI
Std.
Questions N Minimum Maximum Mean Deviation
Did your company has

lack in capital to
30 1.00 15.00 8.8667 3.32942
expand your
business?
Did your company

shortage of hi-
30 1.00 14.00 7.9000 4.00302
technology facilities
and equipment?

limited budget for
30 2.00 15.00 8.5333 3.76676
marketing and
promoting your
business?
35

shortage of skilled
30 1.00 15.00 8.1000 3.59454
workforce?
Did your company

faced a slower growth
30 1.00 15.00 8.5333 3.65526
in regional demand?
Did your company

faced a high cost of
30 2.00 14.00 9.1000 2.35401
labour?
TABLE 4.5.1: MEAN ANALYSIS FOR ISSUES OF MARINE LEISURE INDUSTRY IN

LANGKAWI, KEDAH.
Did your company faced a high cost of labour?
Percent Valid Cumulative

Percent Percent
Freq. %
Valid Strongly 1 3.3 3.3 3.3

Disagree
Disagree 1 3.3 3.3 6.7
Neutral (Mid) 15 50.0 50.0 56.7
Neutral (High) 1 3.3 3.3 60.0
Agree (Low) 1 3.3 3.3 63.3
Agree (Mid) 7 23.3 23.3 86.7
Agree (High) 3 10.0 10.0 96.7
Strongly Agree 1 3.3 3.3 100.0
Total 30 100.0 100.0
36
TABLE 4.5.2 FREQUENCY TABLE FOR HIGHEST MEAN OF ISSUES IN MARINE

LEISURE BOAT INDUSTRY IN LANGKAWI.
Did your company faced a high cost of labour?

Strongly Disagree
1 1 1 Disagree
3
Neutral (Mid)
Neutral (High)
7
Agree (Low)
15 Agree (Mid)
1 Agree (High)
1
Strongly Agree
TABLE 4.5.3: FREQUENCY PIE CHART OF THE HIGHEST MEAN OF ISSUES SECTION
Mean is used synonymously to refer to one measure of the central tendency either of a
probability distribution or of the random variable characterized by that distribution
According to the data analysed, the highest mean for the issue faced by leisure boat industry
in Langkawi is company or business faced a high cost of labour. The value of 9.1000 is the
highest mean value for this section.
FIGURE 4.5.4: BOUSTEAD LANGKAWI SHIPYARD SDN. BHD.
There are a lot of factors why some of the companies is affected by the high cost of labour.
The first factor that the company should be consider is the location. The location of the
company will impacts its labour costs. Company that setup business in economically
depressed areas often have lower labour costs than company located in places where the cost
37
living is higher. Langkawi cost of living is much higher compared to Thailand and Bali,
Indonesia which has same industry of leisure boat industry.
The second factor of why the companies faced a high labour cost is the supply and demand.
Supply and demand comes into priority when the company want to set the wages. If a shortage
of workers exist in the business, the company have to pay relatively high labour cost.
Oppositely, if there is a surplus of skilled workers, the company will have a lower labour cost.
For example, Langkawis marine industry has limited company who is capable to do
maintenance and boat repair. If that company has shortage of skilled labour when needed,
company has to hire contract workers from another company which will increase the labour
cost.
The third factor of why companies faced a high cost of labour is worker efficiency. When
workers spend time dealing with poorly maintained equipment, unproductive meetings and
shortages of essential materials, it will increase the cost of labour. Inefficient scheduling may
result overtime to the workers and increase the labour cost.
During the survey, some of the companies admit that they has low high technology equipment
in their production area. With high and latest technology equipment, the project duration will
be reduced and it could help the company to decrease the cost of labour.
4.6 CHALLENGES OF THE LEISURE BOAT INDUSTRY IN LANGKAWI
Questions N Minimum Maximum Mean Std. Deviation
Did your business

having a growing
30 5.00 14.00 10.9333 2.46259
competition from
regional nations for
marine tourism
market?
Do you think that low

boat ownership
30 2.00 15.00 8.8333 4.08600
among the locals is
one of the challenges
in marine leisure boat
industries?
38
Do you think the

government has
30 2.00 15.00 7.6333 3.61494
done their
responsibilities in
promoting Langkawi
as the Leisure Boat
Destination?
Do you think
financing support
30 8.00 15.00 13.0333 2.14127
from the banks is
important?
Do you think the

increasing of foreign
30 1.00 15.00 10.2000 4.19688
labour give impacts
to the regional
economy?
Do you think that the

legislation applied in
30 2.00 15.00 8.4667 2.89748
Langkawi is affected
to the marine
industry?
TABLE 4.6.1: MEAN ANALYSIS FOR CHALLENGES IN LEISURE BOAT INDUSTRY IN

LANGKAWI, KEDAH.
Do you think financing support from the banks is important?
Frequency Percent Valid Cumulative

Percent Percent
Valid Neutral 3 10.0 10.0 10.0
Agree 5 16.7 16.7 26.7
39
Strongly 2 6.7 6.7 33.3

Agree
(Low)
Strongly 14 46.7 46.7 80.0

Agree (Mid)
Strongly 6 20.0 20.0 100.0

Agree
(High)
Total 30 100.0 100.0
TABLE 4.6.2 FREQUENCY TABLE OF THE HIGHEST MEAN OF THE CHALLENGES OF

LEISURE BOAT INDUSTRY IN LANGKAWI, KEDAH.
Do you think financing support from the banks is

important?
3
6
Neutral
5
Agree
Strongly Agree (Low)
2 Strongly Agree (Mid)

Strongly Agree (High)
14
FIGURE 4.6.3: FREQUENCY PIE CHART OF THE HIGHEST MEAN OF CHALLENGES

SECTION
The highest mean analysis for the section of challenges on leisure boat industry in Langkawi
is the importance of bank support in marine industry. The mean value is 13.0333 which is the
highest in this section. It is followed by 10.9333 where it stated that most of the companies in
Langkawi having a growing competition from regional nations for the marine tourism industry.
40
Marine leisure industry need a financial support from banks who can offer marine loans,
bareboat charters, sale/leasebacks, first lien cash flow loans and asset-backed revolving lines
of credit for a variety of purposes, including permanent financing, construction financing, asset
monetization, turnarounds and special situations such as recapitalizations, restructurings and
distressed purchases.
FIGURE 4.6.4: ESSEX CREDIT; ONE OF THE FINANCIAL COMPANY WHO PROVIDE
LOANS IN BOAT PURCHASING.
The bank plays important role in the marine industry. Financial institution in Malaysia should
provide a financial program for the local to increase the ownership of boats. The increasing of
the local boat ownership may increase the local business in boating industry in Langkawi
instead of promoting Langkawi as the boating and yachting destination to the world.
Langkawis marine leisure industry is very competitive to the regional country such as
Thailand, Singapore and Indonesia. There are thousands of way to be more competitive able
to the regional country.
41
FIGURE 4.6.5: SINGAPORE YACHT SHOW (SYS), SENTOSA COVE, SINGAPORE
Instead of providing good facilities to the yachters, skilled workforce is important too. Marine
industry in Langkawi should has technology in boat manufacturing, building or maintenance
which is equivalent or higher than regional country.
Non-government bodies such as marinas and government need to participate in promoting

Langkawi to attract more foreigner to sail and berthing in Langkawi that indirectly contribute to
the income for the country. Government also need to promote foreign yachters to register their
yacht under Langkawi International Yacht Registry which will contribute to the income for the
country. These are the advantages found only in Malaysia that is not available in neighboring
countries.
4.7 CAPABILITIES OF THE LEISURE BOAT INDUSTRY IN LANGKAWI

TO THE REGIONAL ECONOMY
Questions N Minimum Maximum Mean Std.

Deviation
Did your company/

business capable in
30 1.00 15.00 6.4333 4.42316
boat building and
manufacturing?
42
Did your
company/business
30 1.00 15.00 8.3333 4.53594
has a capability to
provide boat
repairing/ refitting/
maintenance to the
boating industry in
Langkawi?
Did your company/

business offering boat
30 1.00 12.00 5.7333 4.20126
sales and brokerage
in Langkawi?
Did your company/

business offered
30 1.00 15.00 4.8333 4.34768
chartering of yachts in
Langkawi?
Did your company/

business capable to
30 7.00 15.00 12.2333 2.35889
provide material and
services in Langkawi
area?
Do you provide any

tourism promotion/
30 1.00 15.00 9.5000 4.23247
travel agency services
along your business?
TABLE 4.7.1: TABLE OF MEAN ANALYSIS OF CAPABILITIES OF THE MARINE

LEISURE INDUSTRY IN LANGKAWI.
43
Did your company/ business capable to provide material and services in

Langkawi area?

Percent Percent
Valid Neutral (Low) 1 3.3 3.3 3.3
Neutral (Mid) 4 13.3 13.3 16.7
Agree (Low) 4 13.3 13.3 30.0
Agree (Mid) 6 20.0 20.0 50.0
Strongly (Mid) 13 43.3 43.3 93.3

Agree

(High)
Total 30 100.0 100.0
FIGURE 4.7.2: FREQUENCY TABLE OF THE CAPABILITIES OF MARINE LEISURE

INDUSTRY IN LANGKAWI.
Did your company/ business capable to provide

material and services in Langkawi area?
2 1 Neutral (Low)
4
Neutral (Mid)
4 Agree (Low)
Agree (Mid)
13
Strongly (Mid) Agree
6 Strongly Agree (High)
FIGURE 4.7.3: FREQUENCY PIE CHART OF THE HIGHEST MEAN OF CAPABILITIES

SECTION
44
Langkawis marine leisure industry is capable to provide material and services according to
the highest mean obtained from mean analysis table for this section. The value 12.2333 is the
highest mean in this section.
The ship owner might get advantages in Langkawi because many sector of business are
capable to provide material and equipment for yachts without needed to import them from the
other countries which took longer in time. So the yacht owner is can get the supplier in a short
time from the local business available in Langkawi.
FIGURE 4.7.1: YACHT WITH CUSTOMIZED LED.
Langkawi is capable to provide material and equipment for the yachts such as paint, thruster,
Global Positioning System (GPS), Light-Emitting Diode (LED), flags, boat labelling, charts,
engines and other equipment for the yacht needed. Langkawi also capable to supply material
and equipment during the seasonal demand. The demand is increasing greatly when there is
a yachting event such as Royal Langkawi International Regatta 2015.
45
FIGURE 4.7.2: ROYAL LANGKAWI INTERNATIONAL REGATTA 2015
4.8 CONTRIBUTION OF THE LEISURE BOAT INDUSTRY IN

LANGKAWI TO THE REGIONAL ECONOMY
Questions N Minimum Maximum Mean Std.

Deviation
Did Langkawi Marine

Leisure Industry
30 8.00 15.00 12.1667 2.26035
being competitive
market to the
regional country?
Did Langkawi Marine

Leisure Industry is
30 8.00 15.00 11.8333 2.56076
affordable in
contributing to the
national GDP?
By the growing of the

marine leisure
30 6.00 15.00 11.9000 2.77116
industry is generating
46
the new market for

the marine industry?
The growing of the

marine leisure
30 6.00 15.00 12.1667 2.80496
industry is helping to
promote international
yachting event such
as regatta?
The growing of
Langkawi's Marine
30 6.00 15.00 12.5000 2.73861
Leisure Industry is
helping to promote
Langkawi as the
international sailing
and yachting
destination?
The growing of the

Langkawi's Marine
30 4.00 15.00 12.5333 2.71310
Leisure Industry will
helping to promote
fishing activities and
tourism industry?
TABLE 4.8.1: MEAN ANALYSIS OF THE CONTRIBUTION SECTION
The growing of the Langkawis Marine Leisure Industry will helping to

promote fishing activities and tourism industry?

Percent Percent
Valid Disagree 1 3.3 3.3 3.3
47
Neutral (Low) 2 6.7 6.7 10.0
Neutral (Mid) 1 3.3 3.3 13.3
Agree (Low) 1 3.3 3.3 16.7
Agree (Mid) 5 16.7 16.7 33.3
Agree (High) 3 10.0 10.0 43.3

(Mid)

(High)
Total 30 100.0 100.0
TABLE 4.8.2: FREQUENCY TABLE OF THE HIGHEST MEAN OF CONTRIBUTIONS

SECTION
The growing of the Langkawis Marine Leisure Industry will

helping to promote fishing activities and tourism industry?
1 Disagree
2
8 1 Neutral (Low)
1
Neutral (Mid)
Agree (Low)
5
Agree (Mid)
Agree (High)
3 Strongly Agree (Mid)

9
Strongly Agree (High)
FIGURE 4.8.3: FREQUENCY PIE CHART OF THE HIGHEST MEAN OF

CONTRIBUTIONS SECTION
In the section of contribution of the Langkawis marine leisure industry, the highest mean of
this section is the industry is capable to promote Langkawi as fishing and tourism industry.
48
Langkawi provide the best experience in deep sea fishing for the anglers. The anglers could
choose variable service provided by the local for the best fishing experience in Langkawi.
Instead of providing services in fishing industry, it also generates income for the local industry.
So, fishing industry is one of the main industry in Langkawi which contribute to the regional
economy in Langkawi.
Langkawi is famous with beautiful tropical islands in Southeast Asia. Yachting events, yacht
registry in Langkawi and travel promotions done by the government and non-government
agencies is helping in promoting Langkawi as a beautiful place for yachting destination.
4.9 CORRELATIONS ANALYSIS
4.9.1 INTRODUCTION OF CORRELATION ANALYSIS
Correlation is the analysis of the statistics that provide an estimate on the relationship between
two measurement are also been known as the variable. Correlation looks at the relationship
between two variables, if two variables are related to each other than variables are said to be
correlated. This analysis helps deriving the degree and the direction of such relationships both
variables.
Pearsons correlation coefficient requires both variables to be measured on an interval or

ration scale, and the calculation is based on the actual value. A correlation that close to number
+1 has a significant strong relationship while a correlation close to 0 has no significant
relationship between the variables.
Correlation Value Qualitative Description of

the Strength
-1 Perfect Negative
-1 until -0.75 Strong Negative
-0.75 until -0.5 Moderate Negative
-0.5 until -0.25 Weak Negative
-0.25 until 0.25 No linear association
0.25 until 0.50 Weak Positive
0.50 until 0.75 Moderate Positive
0.75 until 1 Strong Positive
1 Perfect Positive
49
TABLE 4.9.1.1: CORRELATION VALUE
( )( )
=
[ 2 ( )2 ][ 2 ( )2 ]
Where:
N = total of pairs of scores

= sum of the product paired scores
= sum of x scores
= sum of y scores
2 = sum of squared x scores
2 = sum of squared y scores
FIGURE 4.9.1.2: CORRELATION COEFFICIENT FORMULA
4.9.2 CORRELATIONS ANALYSIS BETWEEN ISSUES AND

CAPABILITIES OF LEISURE BOAT INDUSTRIES IN LANGKAWI, KEDAH
In this research, I would like to test the relation of the coefficient between the issues and
capabilities of Leisure Boat Industries in Langkawi, Kedah.
B D
B Pearson Correlation 1 0.493**
Sig. (2-tailed) 0.006
D Pearson Correlation 0.493** 1
**. Correlation is significant at the 0.01 level (2-tailed).
FIGURE 4.9.2: CORRELATION TABLE BETWEEN SECTION ISSUES AND

CAPABILITIES
50
From the data analysed by SPSS software, the correlation coefficient between issues and
capabilities of Leisure Boat in Langkawi, Kedah is 0.493. There is enough evidence at the 1%
level of significance to conclude that there is a significant linear correlation between the
sections of issues and capabilities of leisure boat industry in Langkawi. The value correlation
is positive. This positive correlation shows that the relationship between these two variables
move simultaneously.
4.9.3 CORRELATIONS ANALYSIS BETWEEN CHALLENGES AND

CONTRIBUTION OF THE LEISURE BOAT INDUSTRY IN LANGKAWI
C E
C Pearson Correlation 1 -0.295
Sig. (2-tailed) .114
E Pearson Correlation -.295 1
TABLE 4.9.3: THE CORRELATION TABLE BETWEEN SECTION OF CHALLENGES (C)

AND CONTRIBUTION (E).
According to the data analysed, the correlation coefficient between challenges and
contribution is 0.295. The data is not significant. The value of -0.295 is closer to 0 which
means close to no linear association. Since this value is not significant, it concludes that
there is no relation between section challenges and contribution of leisure boat in Langkawi.
4.9.4 CORRELATIONS ANALYSIS BETWEEN ISSUES AND

CHALLENGES OF THE LEISURE BOAT INDUSTRY IN LANGKAWI
B C
B Pearson Correlation 1 0.320
C Pearson Correlation 0.320 1
51
TABLE 4.9.4: THE CORRELATION TABLE BETWEEN SECTION OF ISSUES (B) AND
CHALLENGES (C).
According to the data analysed, the correlation coefficient between issues and challenges is
0.320. The data is not significant. The value of 0.320 is weak positive and closer to 0 which
means close to no linear association. Since this value is not significant, it concludes that there
is no relation between a section of issues and challenges of leisure boat in Langkawi.
4.9.5 CORRELATION ANALYSIS BETWEEN SECTION OF CAPABILITIES

AND CONTRIBUTIONS.
D E
D Pearson Correlation 1 -0.524**
E Pearson Correlation -0.524** 1
** Correlation is significant at the level 0.01 level (2-tailed).
TABLE 4.9.5: THE CORRELATION TABLE BETWEEN SECTION OF CAPABILITIES (D)

AND CONTRIBUTIONS (E).
According to the data analysed by SPSS, the value of correlation, r is

(-0.524). The value is moderately negative and the correlation between these two sections is
significant. There is enough evidence at the 1% level of significance to conclude that there is
a significant linear correlation between the sections of the capabilities and contribution of
leisure boat industry in Langkawi.
4.9.6 SUMMARY OF CORRELATIONS COEFFICIENT FOR THE SECTIONS

ISSUES, CAPABILITIES, CHALLENGES AND CONTRIBUTIONS OF
LEISURE BOAT INDUSTRY IN LANGKAWI.
Relations Pearson Correlation Sig. (2-

tailed)/
Issues & Capabilities BD 0.493 0.006

significant at 0.01 level
Challenges & Contributions CE -0.295 0.114
Issues & Challenges BC 0.320 0.084
Capabilities & Contributions DE -0.524 0.003
52
significant at 0.01 level
TABLE 4.9.6: CORRELATION RELATION BETWEEN ISSUES, CHALLENGES,

CAPABILITIES AND CONTRIBUTION.
There is a significant relation between the section of issues and challenges. The higher the
number of activities and services of Langkawis Leisure Boat Industry capable to do, the higher
the numbers of issues arise in the industry.
For example, Langkawi Boustead Heavy Industry Sdn. Bhd. is capable to provide
yacht repair and maintenance services. The shipyard is able to handle 10 superyacht at a
time. So, during the peak season, the company needs a high number of skilled and workforce
labour to handle large number of customers.
The company needs to hire contract labour to handle their large number of customers. This
situation makes the company to face some of the internal issues. The company need to pay
high cost of labour work and they also required more high technology facilities and equipment.
According to the data analysed, there is a significant relation between the section of
capabilities and contributions. In this relation, the value is
(-0.524) where one of this variable is contrast between each other. There is a lot of factors
why this value is negative.
The first factor influenced the value of the correlation coefficient to become negative
is the scope of the sections. Most of the questions in the section capabilities are focusing on
the services that this industry capable to do, but the scope of the contribution is focused on
the promotion of Langkawi as a yacht destination and generating of new industry to be
competitive able to the regional economy. If the researcher changes the scope of the
contribution section to the services in this industry capable to provide to the local, the value
might be significantly positively. However, the value negative obtained from the result does
not change the relation or influence any assumption between these two sections.
The second factor influenced the value of the correlation to become negative is
because of the contribution of this industry. The objectives of this research are to identify the
issues and challenges of leisure boat industry in Langkawi, Kedah and to determine the
capabilities and the contribution of this industry in generating the local economy. If we look at
the data analysed and the data gained from the interview session, the benefits of this leisure
boat industry mostly goes to the foreigner.
The data gained from the interview session, around 75% of yacht registered under the
Langkawi International Yacht Registry compared to the local registered. Percentages from
1000 yachts registered under the Langkawi International Yacht Registry shows that even this
53
industry is capable to do a lot of services to the yacht or leisure boat, the services provided by
Langkawis industry most benefit to the foreigner who is the majority of the yachts owner. This
negative value of correlation efficient of this relation between capabilities and contribution, the
researcher assumes that, the Langkawis Marine Leisure Industries has the highest
capabilities in this industry, however it has the lowest contribution towards the local people
from this region.
The Langkawis Marine Department also stated in the interview session where some of the
yachters throw their rubbish directly to the sea because they want to save the cost from
dispose it properly by the marinas available in Langkawi. This statement shows that even
Langkawis Marinas is able to do waste management services to the yachters, but some of
the yachters prefer to throw it directly to the sea to save the cost of the yacht operation; so
there is no contribution to the local industry if yachters keep throwing the rubbish into the sea.
In Langkawis anchorage area, yachters have many options to berth their yacht at the marina
or anchoring their yacht at free anchoring area. This situation is shown that Langkawi is able
to provide an anchoring area to the yachters, however, there is no income to the local industry.
Some of the anchorage location in Langkawi which are mostly free are Tanjung Rhu
Anchorage Area, Datai Bay Anchoring, Pantai Cenang Anchoring, Sunset Bay Anchorage and
Pulau Bumbon Besar Anchorage.
4.10 INTERVIEW ANALYSIS
The interview session has been done with Marine Department of Langkawi to fulfil the
expected outcome of this research. Below is the answer from the interview session.
1) Did Langkawi Yacht Industry has high technology facilities?
Answer:
We are a little bit behind if compared to Singapore and Thailand. Our boating industry is good
in terms of efficiency and navigational aids. Currently, the jetty terminal could afford to manage
between 800 1000 passengers at a time. If the new terminal is ready, the number of
passengers which could afford is 3000 for domestic and 500 for international passenger.
In Singapore, fibre boat is allowed to operate up to 10 years only. Comparing to aluminium

boats which is up to 13 years and for steel boat where the maximum years operated is 15-18
years respectively. In Langkawi, this rules is not applied and most of boats operating in
Langkawi is obsolete.
Currently, Langkawi cannot accommodate a large number of yachts. Marine Department has
proposed to increase the number of anchorage area in Langkawi and to extend the size of the
current berthing and anchoring area.
54
2) Did the government plays a role in promoting Langkawi as the leisure boat
destination?
Answer:
Government do assist in promoting Langkawi as the yacht destination through several bodies
such as LADA (Lembaga Pembanggunan Langkawi), MATTA (Malaysian Association of Tour
& Travel Agent) and through local marinas.
3) How many yachts has been registered with Langkawi International Yacht Registry
(LIYR)?
Answer:
Approximately 1000 yachts has been registered under Langkawi International Yacht Registry
which is based in Langkawi.
4) How many percentage of local yacht registered under LYIR?
Answer:
Approximately 25% yacht registered from the local.
5) What are the advantages registered with Langkawi International Yacht Registry?
Answer:
The boat can sail around the world. There is no limit of sailing. It also benefits in promoting
Langkawi as boat destination.
6) How much is the cost of register for a yacht under LYIR?
Answer:
The cost of register is depend on the size and length of the yacht. It is also depend on how
the ship owner registered their yacht whether directly to marine department or through agents
(usually RM500 for agents fee). For example, the cost of registration for a yacht under 24
meters is RM1120 for first-time registration and first year annual renewal fee RM380. The total
payment need for the registration is around RM1500 RM1520. For the next following year,
the boat owner just need to pay RM380 annually.
7) What are the documents need to prepare if the yacht registered under LIYR to sail in
other countries?
Answer:
Boat owner are compulsory to prepare port clearance documentation to marine department.
When the boat arrive at the next port, he must to report to the local authority. This process is
55
often called check-in and check-out. It involves many parties such as Immigration, Customs
and Marine Department.
8) Is the boat registered under LIYR need to inform home port if the boat want to sail
overseas?
Answer:
No. The boat owner just need to do port clearance in the current port and report to the next
port of destination only (port-to-port declaration).
9) Did yacht registered under LIYR has limited country to sail?
Answer:
No, the yacht registered can sail internationally.
10) If the foreigner registered their yacht under LIYR, does he has to comply the law
designated by Malaysia government only or also need to comply with the local law of the
previous country of the origin applicants?
Answer:
According to the procedure, if the foreigner need to register their yacht, the first step to do is
to delete the previous registry. The documents need to provide by the ship owner are Bill of
Sale, Birth Certificate, Certificate of the Owner by the court or any document to prove the
owner of the yacht.
After the yacht has been registered under LYIR, the yacht is comply with LYIR Act only. The
previous act from previous country registered is not applicable.
11) The owner of the yacht registered under LYIR is subjected to Langkawi International
Yacht Registry Act or Malaysia Shipping Ordinance 1952, or both?
Answer:
In terms of manning, it is subjected to MSO 1952. Langkawi International Yacht Registry is a

part of MSO 1952 where it is established on 2003. In the court, LYIR is read after MSO 1952.
12) Does the foreigner registered under LIYR charged the same rate as local residents
who registered yacht under LIYR?
Answer:
56
Yes, the rate is same between local and foreigner. The registration rate will be different
according to the entity of the yacht registered; whether is registered under individual or
company. However, the annual renewal remain the same.
13) Does the applicant have to attend any courses to register their boat under LYIR?
Answer:
No.
14) Does the operators for the yacht registered under LIYR require any
qualification/certificate/ license to operate yacht?
Answer
Yacht operator is not required Certificate of Competency (COC). This is because LYIR is not
for commercial use. So the owner could operate his own yacht. There is a special registration
for a boat/yacht which is for commercial use such as water taxi, etc. For boat/yacht for
commercial uses, COC is compulsory because it is involving passenger. LYIR involve an
individual who has their own insurance. Therefore yacht registered under LYIR is not required
to have COC.
15) Does yacht registered under Langkawi International Yacht Registry is covered under
Malaysian protection?
Answer
All registered yacht under LIYR is covered by APMM (Agensi Penguatkuasaan Maritime
Malaysia) and marine police. It is similar to any other Malaysias registered vessel.
16) If the owner of a sailing boat at risk, how the owners want to get help?
Answer:
Just like SOLAS adopted by the other ships, yachts as well use flair as distress signals instead
of a horn, radio and so on. So, during the registration of yachts, the Malaysia Marine
Department will make a survey / inspection of equipment as specified in SOLAS in MSO 1952.
All of the safety equipment such as safety jackets and lifebuoys is inspected by the marine
department before the yacht is qualified to be entitled to register under the Langkawi
International Yacht Registry.
17) What are the challenges faced by the Marine Department on the issue of a yacht in
Langkawi?
Answer:
There is a lot of issue of yacht in Langkawi.
57
One of the issues is a yacht from the outside enter the territorial waters of Langkawi /
anchorage area, without making check-in and checkout. This means the owner of the yacht
does not inform the marine department when entering Malaysias water; Langkawis
anchorage area. These actions should be monitored by the marine police and APMM since
APMM is the enforcement body who is responsible for the Malaysias water. However, no
action be taken by the government because of the tourism factor in Langkawi.
Garbage is another issue in Langkawi. Yacht owner or yacht operator needs to pay to dispose
their garbage through the service provided by the marina. However, the yacht operator refuses
to pay in order to save their cost; so they simply throw their rubbish into the sea.
5.1 INTRODUCTION
The research The Study on Leisure Boat Industry in Langkawi, Kedah: Capabilities and
Contribution of the Industry to the Regional Economy has been completed to achieve the
objectives. In this research, the researcher has identified the issues and challenges of the
Leisure Boat Industry in Langkawi.
This research has been done in Langkawi, Kedah. 30 questionnaires have been distributed
randomly through Langkawi to collect the data to be analysed to gain the result. The
researcher also had an interview with representatives from the Malaysia Marine Department
to gain more knowledge to complete this research. By completing this research, the researcher
may list out the internal issues faced by Langkawis marine leisure industry, and the external
challenges which give impacts to the Langkawis marine leisure industry. In addition, the
researcher also may list out the capabilities and the contribution of this industry in generating
the regional economy. This research also will provide suggestion and recommendation for
government and non-government bodies together to improve the potential of the marine
leisure boat industry in Langkawi, Kedah.
Marine Leisure industry has been defined into two section; market and support services. This
both industry contribute in generating the local economy which benefits to the local. However,
58
there are issues and challenges need to overcome by this industry in benefits the regional
economy.
5.2 CONCLUSION
Data analysis shows that most of businesses related to the marine leisure boat
industry in Langkawi is more than 13 years of operated. This number of years operated shows
that this industry is capable to provide services to the marine leisure boat industry in Langkawi.
No Services Mean
1. Providing material and services 12.233
2. Providing tourism promotion / travel agency services along the 9.500

businesses.
3. Boat repairing / refitting / maintenance to the boating industry. 8.333
4. Boat building and manufacturing. 6.433
5. Boat sales and brokerage. 5.733
6. Yacht chartering. 4.833
TABLE 5.2.1: CAPABILITIES OF LEISURE BOAT INDUSTRY IN LANGKAWI.
Table 5.2.1 shows that this industry is capable to do a lot of services which related to the
leisure boat industry such as providing material and services, tourism promotion and travel
agency promotion, boat repairing, refitting, and maintenance, boat building and manufacturing,
boat sales and brokerage and yacht chartering. According to the highest mean, most of the
business which is easier to find in Langkawi is hardware business which is a business who is
providing material and equipment for the boat. This capabilities attracts the foreigner to sail
their yacht in Langkawi because of the services available in Langkawi.
However, government and private sector should concern to the lowest service provided by this
sector. Private and government sector should cooperate with some of the yacht manufacturing
company such as Grand Bank, which has manufacturing factory at Pasir Gudang, Johor in
increasing the scope of the yacht market area. This cooperation will benefit both parties in
increasing the number of services provided in Langkawi, Kedah.
Malaysia has thousands of creative web developers. They should be innovative in creating a
website and software in promoting business involving marine leisure boat industry. This
59
website and software are helping this industry in generating their economy rapidly and widely.
People easier to access the services provided and do comparison of prices easily between
the service providers. This web services benefit the customer to find the service that they want
easier and the provider could easily promote their product and services through the web. This
web service is helping this industry in promoting and marketing the services besides helping
this industry stretch widely.
Langkawi might has a lot of businesses operated which providing services to the yachts and
boats in Langkawi. However, there is a lot of internal issues needs to overcome by this industry
to survive in this regional economy. The government and private sector should cooperate
together to find an alternative to solve these issues.
No Internal Issues Mean
1. High cost of labour 9.100
2. Lack of capital in expand business 8.867
3. Slower growth in regional demand 8.533
4. Limited budget for marketing and promoting 8.533

business.
5. Shortage of skilled workforce. 8.100
6. Shortage of high technology facilities and 7.900

equipment
TABLE 5.2.2: INTERNAL ISSUES IN LANGKAWIS MARINE LEISURE BOAT INDUSTRY
Higher cost of labour is the highest factor in Langkawis Marine Leisure Boat Industry. Most of
companies faced a high cost of labour, which will affect the price of material and services
offered in Langkawi. However, this does not affect the customer from the overseas because
of the low value of Ringgit Malaysia (MYR) compared to the United States of America Dollar
(USD). However, the government should provide a subsidiary and taxes exception in
purchasing the materials to the local owner.
The government also should encourage the local banks in providing loans for the local
business involved in the marine leisure boat industry in expanding their business in this South
East Asian. The expanding of the business is helping this industry to be a competitor to the
regional economy.
60
Marine leisure boat industry in Langkawi Kedah faced several challenges in operating their
business. The table below shows the challenges faced by this industry in Langkawi, Kedah,
Malaysia.
No Challenges Mean
1 Financing support from the bank 13.033
2 Growing competition from regional nations 10.933
3 Increasing of foreign labour 10.200
4 Low ownership among the locals 8.8333
5 Government responsibilities in promoting Langkawi 7.633

as Leisure Boat Destination.
TABLE 5.2.3: CHALLENGES FACED BY LOCAL
The financial support from the bank is important in starting up a business, expanding the
business and also promoting and marketing the business in this industry. The financial support
from the bank is also important to the local to own the boat and it is important for the local
economy to have a higher percentage of the boat among the local in generating the economy
rapidly. The government should encourage the local banks and also National Bank of Malaysia
to provide a loan for the locals to own the yacht. By increasing the number of the yacht owners
among the locals, it is helping the locals in generating the economy in the other sectors such
as insurance, chandleries, management and many more.
Contributions Mean
1 Promoting fishing and tourism industry 12.533
2 Promoting Langkawi as the international sailing and 12.500

yachting destination
3 Promoting international yachting event such as Royal 12.167

Langkawi International Regatta?
4 Being competitive market to the regional country such 12.167

as Singapore and Thailand
61
5 Generating new market for the industry 11.900
6 Contribute to the national GDP 11.333
TABLE 5.2.4: THE CONTRIBUTION OF THE INDUSTRY TO THE REGIONAL ECONOMY.
Langkawis marine leisure boat industry has contribution to the regional economy. Some of
the industries promoting fishing and tourism industry in Langkawi and they are also promoting
Langkawi as the sailing and yacht destination. Government and non-government bodies
together promoting Langkawi as a tourism destination to attract more people to visit Langkawi
for benefits of the local economy.
According to the interview session with Malaysia Marine Department, Langkawis

marine leisure boat industry has lack of technology compared to Singapore and Thailand.
Kuahs jetty currently able to handle 800 1000 passenger in a time. After the new jetty is
constructed, the new jetty is able to handle 3000 passenger for domestics and 500 for
international passenger. The new jetty is estimate to start their operation in earlier 2017.
Researcher hope that this new jetty will increase the efficiency in handling passenger to
Langkawi Island.
Langkawi also has a shortage for anchoring area for the leisure boat. It is a
responsibilities for the government to provide sufficient anchoring area for the yachters.
However, most of the anchorage are for the yachters will benefits more to the foreign yachters
because of the large number of foreigner ownership of yachts compared to the local.
The increasing of the foreigner yachters into Langkawi may increase the income for
the local economy. An economy, which benefits from the present of the yachts such as
marinas, chandleries, hotels, repair and maintenance and many more. However, there are
also some of negative impacts to the Langkawi. According to the Marine Department, some of
the yachters are easily removed their rubbish from the yacht directly to the water, which caused
the water pollution because of improper waste management. Some of the yachters remove
waste directly to the water to reduce their cost operating the yacht. This bad activity may
pollute the nature beauty of Langkawi.
Some of the yachters also did not inform Marine Department (Harbour Master) when
they are entering Langkawi / Malaysia territorial water. This irresponsible attitude of the
yachters could give a bad impact to the Langkawi if the yachters bring along harmful
substances in their yacht.
62
So, NGOs must work alongside with government to overcome these issues and
challenges to make Langkawi as the best yachting destination with the best services provided
in the East Asia and perhaps the best in the world.
5.3 RECOMMENDATION
During the interview session, Marine Department stated that Langkawi has a shortage
of anchoring area. The government should expand more area for the yachts. Besides that, the
area must be equipped with proper facilities so it could benefits the yachters and create new
job opportunities.
Local people have the lowest number of yachts registered. To increase the number of
yacht ownership among the local, the government should encourage the banks to provide
financial support for local to own their own boat and yachts. Besides that, the government
should provide subsidiary for the local if they want to register their yacht under the Langkawi
International Yacht Registry. The lowest amount of registration fees might help to increase the
number of local yachts to be registered under Langkawi International Yacht Registry. Langkawi
International Yacht Registry should be able to compete famous yacht registry in the world such
as Red Ensign Group (UK MCAs Large Yacht Code), White List (maintained by the Paris
Memorandum of Understanding on Port State Control and other yacht registry available in the
world. Langkawi International Yacht Registry should be a one of the competitors between
these registries by increasing of quality and service provided.
The government should encourage the local people to own a personal yacht starting
from the school students. Co-curricular activities such as sailing a dinghy and windsurfing
should be introduced to the schools in Langkawi as a basic introduction to the children and
students to develop the interest towards the yacht and any marine leisure activity in Langkawi,
Kedah.
Malaysia Maritime Enforcement Agency (MMEA) and marine police should increase
their supervision on the Langkawis territorial water to make sure there are no yachts could
enter Langkawis water without permission from the harbour master of Langkawi. According
to marine department, some of the yacht did not do port clearance from the previous port and
entering Langkawis water without informing marine department. Serious action must be taken
such as penalties and compensation on the intruders. Marine Department must properly do a
regular survey of the yachts in Langkawis anchorage area and yachts entering Langkawis
area to make sure there is no illegal item or substances such as drugs, weeds and etc.
To maintain the good name of the Langkawis International yacht Registry in the eye
of the world, all of the yachts registered under the Langkawi International Yacht Registry must
63
be inspect properly. The yacht must be in a good condition beside of having complete
documentation for the registration. The yachts must be equipped with emergency safety
equipment as stated by SOLAS.
The Malaysia National Bank should provide incentive to any non-government bodies to expand
their business in this marine leisure boat industry. This incentive will increase the facilities and
services by Langkawis marine leisure industry so this industry is capable of competing with
regional country such as Thailand and Singapore.
Researcher hopes this research provide a guide for the government and related agency to
overcome issues and challenges of this industry in Langkawi and making this industry
profitable to the country not only benefits to the local economy.
Ariff, K. M. (1994). Malaysia's Economy in the Nineties. Pelanduk Publications.
Basiron, M. N., & Laut, J. R. (1991). MARINE TOURISM INDUSTRY-trends and prospects.
Compendium, 455, 261-070.
Boustead Langkawi Shipyard Sdn. Bhd. Retrieved April 15, 2015, from
http://www.blsy.com.my
Canadian Recreational Boating Economic Impact Study. Retrieved April 15, 2015,
from http://www.nmma.ca
Jomo, K. S. (1990). Beyond the new economic policy? Malaysia in the nineties. The
Sixth James C. Jackson Memorial Lecture presented at Griffith University, Brisbane, on, 2.
64
Langkawi District Officers Website. (n.d.). Retrieved May 14, 2015, from
http://webjabatan.kedah.gov.my
Lucintel (2010), Global Recreational Boating Industry Analysis and Forecast 2010-
2015. Retrieved April 15, 2015, from http://www.prnewswire.com/news-releases/reportlinker-
adds-global-recreational-boating-industry-analysis-and-forecast-2010-2015-111435169.html
Malaysian Shipbuilding & Ocean Industry Generates Growth to shape its Future,
MGCC Perspectives, volume 19, November/Disember 2013.
Nazery Khalid (2008). In Setting Sail Setting Sail: Positioning Malaysia as a Yachting
Haven.
Nazery Khalid, Armi Suzana Zamil, Farida Farid & Siti Nazatul Izura Ishak, An Assessment
of the Development of Marinas and Boating Activities in Malaysia (2007), Maritime Institute
of Malaysia.
Othman (1996). The Future of Malaysian Maritime Economy. Retrieved May 16,
2015, from http://portal.mim.org.my/resources/MMR/9812/981204.htm
Registration of Yacht under Langkawi International Yacht Registry. Retrieved June

22, 2015, from http://www.langkawi-gazette.com/marine-guide/my-boat-registration
Shen, Oh Kean. (2010). Marine Leisure Industry Sector. Maritime Institute of

Malaysia.
Types of Business Sector in Langkawi. Retrieved March 29, 2015, from

http://www.langkawi-gazette.com/marine-guide/maintenance-repair
Wong, H. W. (1997). The maritime economy of Malaysia. Pelanduk Publications.
65
APPENDIX A
Research Questionnaire
66
67
68
69
APPENDIX B
Manuscript
70
71
72
73
74
APPENDIX C
Poster
75

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Leisure Boat Industry Langkawi

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The Study on the Leisure Boat Industry in Langkawi, Kedah:

Capabilities and Contribution of the Industry to the Regional Economy

UNIVERSITI KUALA LUMPUR

THE STUDY ON THE LEISURE BOAT INDUSTRY IN LANGKAWI, KEDAH:

Dataran Industri Teknologi Kejuruteraan Marin

3.5.4 Correlation Coefficient Analysis 25

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS

Figure 1.4 The location maps of Langkawi 7

Table 2.5.1.1 Internal Factors Impacting Malaysian

Table 4.6.3 Frequency Pie Chart of the Highest Mean

AMIM Association of Marine Industry Malaysia

1.1 BACKGROUND RESEARCH

1.2 RESEARCH OBJECTIVES

1.3 PROBLEMS STATEMENT

1.4 SCOPE OF RESEARCH

Figure 1.4: The location of Langkawi, Kedah, Malaysia

2.2 LANGKAWI, THE JEWEL OF KEDAH

2.3 DEFINING YACHT AS LEISURE BOATS

2.3.1 TYPES OF YACHTS

Sailing Yachts Motor Yachts

Example: Day Cruiser

Figure 2.3.1: Types of Yachts

2.4 LANGKAWIS RECREATIONAL BOAT INDUSTRY

Market Support Services

Superyachts Charter Resorts Registrations

Marine Tourism Insurance Training

Figure 2.4: Marine Leisure Industry Sectors (Shen, 2010).

2.4.2 BOAT BROKERS

FIGURE 2.4.2: Location of Pippen Marine

2.4.3 BOATS HUSBANDRY

Boats husbandry or chandleries is refer to a service by an agent which is appointed by the

FIGURE 2.4.4: Boustead Langkawi Shipyard Sdn. Bhd.

2.4.5 REPAIR AND CONSTRUCTION SERVICES

2.4.7 SPECIAL MARINE PAINT

Varieties of international paints, anti-fouling, varnishes and Sikkens is available at the

2.4.8 BOOKS / CHARTS / FLAGS / CUSTOM MADE FLAGS / BOAT

FIGURE 2.4.8: Courtesy Flag for Langkawi Registered Yacht

2.4.9 ANCHORAGE AND MOORING AREA

2.4.9.1 HOLE IN THE WALL MOORING

2.4.9.2 TELAGA HARBOUR MOORING

FIGURE 2.4.9.2: Telaga Harbour Moorings Area

2.4.9.3 OUTSIDE TELAGA HARBOUR

2.4.9.4 BASS HARBOUR

2.4.10 STUDY AND TRAINING INSTITUITION

2.5 MALAYSIA MARITIME ECONOMY

2.5.1 THE INTERNAL AND EXTERNAL FACTORS IMPACTING THE

SWOT analysis is a structured method used to estimate the strengths, weaknesses,

Sufficient yachting infrastructures Lack of critical mass of local

TABLE 2.5.1.1: THE INTERNAL FACTORS

Increasing popularity of marine Stiff competition for tourist dollars.

Growing public awareness / interest. Perception of threat in regional

TABLE 2.5.1.2: THE EXTERNAL FACTORS

2.5.2 RECENT ECONOMICAL HISTORY OF BOATING INDUSTRY

2.5.3 THE GROWTH OF RECREATIONAL BOAT INDUSTRY

Recreational boating is a significant industry to the Canadian economy. According to The

Figure 2.5.3: GROSS DOMESTIC PRODUCT BY INDUSTRY SEGMENT

2.5.4 International Boat Manufacturing Countries

3.2 RESEARCH DESIGN

3.3 POPULATION AND SAMPLE

3.3.1 SURVEY POPULATION

A population is defined as all elements that include such individuals, object

The target population comprised Langkawis marine leisure industry. It is including

3.3.2 SAMPLING DESIGN

This research is based on purposive sampling technique, the alternative use of