Malaysia's Ports To Benefit From Supply Chain Shifts, Green Bunkering Push - AmBank
KUALA LUMPUR, July 17 (Bernama) -- Malaysia's port operators are poised to benefit from trade rerouting and increased transhipment activity despite elevated logistics costs, said AmBank (M) Bhd chief economist Firdaos Rosli.
He said that Malaysia's port sector has benefited from trade rerouting arising from geopolitical tensions in West Asia, reinforcing the country's role as a safe and efficient transhipment hub along the Strait of Melaka.
“Continued supply chain diversification and transhipment growth are expected to support port activities, although sustaining competitiveness will require ongoing investment in capacity expansion and strategic infrastructure projects,” Firdaos said during the media briefing titled “2HFY2026 Outlook: Resilient Growth, Rising Fractures” here today.
Port Klang and the Port of Tanjung Pelepas (PTP) recorded container throughputs of 15.14 million twenty-foot equivalent units (TEUs) and 14.03 million TEUs, respectively, in 2025.
In the first five months of 2026, container volumes at Port Klang and PTP grew by five per cent and eight per cent year-on-year (y-o-y), respectively.
At the same time, he said that Malaysia is strengthening its position as a regional green bunkering hub by adopting alternative marine fuels such as liquefied natural gas (LNG) and methanol.
“The government's Green Bunkering Regulatory Roadmap targets low-carbon fuels accounting for 40 per cent of maritime fuel consumption by 2050, while PTP has already undertaken LNG and methanol bunkering operations,” said Firdaos.
Meanwhile, the Baltic Exchange Index (BDI) surged above 120 per cent y-o-y twice in February and in May, and remains elevated at 64.6 per cent in June.
“Freight rates usually drop rapidly after a temporary disruption. However, shipping costs have sharply increased and have remained stable, indicating ongoing supply-side issues.
“This means that while the conflict in West Asia may not be directly impacting global oil markets anymore, it continues to affect transportation markets, especially maritime routes,” he said.
-- BERNAMA