KUALA LUMPUR: Malaysia’s shipping industry sees its outlook remaining positive as the nation is well-positioned to benefit from the reshoring and realignment of global supply chains, supported by its strategic location along the Straits of Malacca, competitive energy costs and established port infrastructure.
Ahead of Budget 2026, Shipping Association Malaysia (SAM) chairman Ooi Lean Hin said the industry is hopeful of stronger facilitation measures to ensure that Malaysia sustains its momentum in maritime growth.
Shipping has also been identified under the government’s blue economy agenda in the 13th Malaysia Plan (13MP), which outlines plans to acquire 136 vessels, equivalent to about 840,000 gross registered tonnes (GRT).
Ooi said Malaysia ticked many of the right boxes to attract companies seeking alternatives to China, as the United States reduces its reliance on Chinese goods. “China used to account for about 70% of US imports, but that has since fallen to around 50 to 55%. Vietnam, Indonesia, Thailand and Malaysia are among the Southeast Asian nations benefiting from this realignment,” he told The Nation programme on Bernama TV recently.
He said Malaysia’s position is further reinforced by strategies and initiatives by the Ministry of Investment, Trade and Industry to attract investors, with cargo throughput now standing at about half of Singapore’s volume. “This is a significant achievement, reflecting Malaysia’s growing importance in regional trade flows,” he added.
Ooi said the positive momentum has also translated into greater cargo movement across the hinterland, which grew by about 11% annually. He noted that for Malaysia, the post-Covid period has been marked by stronger shipping activity, with cargo growth driven by demand recovery and companies seeking to diversify supply chains. The positive trend in Malaysia’s shipping sector, he noted, runs parallel to developments in the global industry, which has faced multiple shocks since 2020.
“When Covid-19 happened, it created major supply chain disruptions. Port congestion, full warehouses and equipment shortages led to a serious shortfall in shipping capacity. This pushed freight rates higher and resulted in unprecedented earnings for shipping companies,” he said, adding that geopolitical tensions have further reshaped global shipping.
“Then came the Russia-Ukraine war, and the conflict in Gaza triggered the Red Sea crisis, as Houthis attacked vessels transiting the Suez. Many ships were forced to divert around the Cape of Good Hope, which reduced capacity and again pushed demand above supply. As a result, shipping lines remained highly profitable,” he explained.
Ooi noted that from 2021 to 2025, the container liner segment, in particular, enjoyed five strong years. However, he cautioned that uncertainties remain, especially from trade wars and tariffs that began in 2018 and continue to reshape global supply chains. However, he warned that last-mile connectivity issues could hamper long-term growth.
“The hinterland or gateway cargo is growing by a compounding 10% to 11% every year, which means in six to seven years, the volume will double. Yet road infrastructure to the ports has not kept pace. Truck operators who used to manage four trips a day are now struggling to complete two, with the risk of dropping to just one if congestion worsens,” he warned.
Ooi stressed that while incentives for night cargo movement were helpful, they were insufficient to resolve the issue, and called for more investments in highways and port access roads to safeguard Malaysia’s competitiveness in regional shipping.
“Shipping accounts for more than 80% of global trade transportation. With healthy ports and a competitive maritime sector, Malaysia can ensure sustainable growth and solidify its role as a regional maritime hub,” he said. – Bernama
