Logistics

Malaysia’s strategic role in ASEAN’s transport landscape emphasizes its strong infrastructure and evolving trade dynamics. From 2018 to 2022, enhancements to port and airport facilities ensured a stable network, with Port Klang as the key hub for logistics. Containerized shipments made up 79.7% of port activities in 2021, reflecting significant investment in infrastructure. The air cargo sector has also shown resilience, particularly through KLIA Terminal 1. With a projected CAGR of 2.3% from 2024 to 2030, Malaysia’s transport sector is set for sustained growth, reinforcing its position in ASEAN’s economic integration and global markets.

Malaysia’s land freight transport sector is poised for significant growth, driven by infrastructure investments and strategic initiatives. With a 9.13% CAGR in port container traffic, projects like the East Coast Rail Link and the Pan Borneo Highway enhance connectivity, reinforcing Malaysia’s role as a key logistics hub in Southeast Asia. Ports such as Port Klang and Tanjung Pelepas facilitate efficient goods movement, while the increasing number of registered goods vehicles underscores the sector’s importance. Projected to reach 63.9 million TEUs by 2030, Malaysia is well-positioned to capitalize on global trade opportunities and drive economic development.

The Malaysian air freight industry shifted to greater imports from 2013 to 2015, with KLIA leading cargo volume. The sea freight sector grew from 353 million tonnes to 436 million tonnes, with exports exceeding imports. Key commodities are machinery/electrical and mineral/fuel products, mainly traded with Singapore and China. Future growth is expected with 5 new ports planned, but challenges include adapting to global trends, environmental policies, and a skilled labor shortage.

Freight transport by road dominates Malaysia’s land transport, contributing 79% to the gross output, which hit RM21.2 billion in 2015—a 53% increase from 2014. This sector is projected to grow at a CAGR of 11.47% to RM36.5 billion by 2020, driven mainly by Selangor, which accounts for 40% of the output. Malaysian government support for road development is expected to further boost growth in the industry. However, declining volumes at Malaysian ports, particularly due to shifts to Singapore, and a critical lorry driver shortage (20%-30%) pose significant challenges. Overall, the industry growth remain optimistics despite various challenges.