SUBANG: The value of Malaysia’s trade transported by air surpassed that moved by sea during the first five months of 2026, driven by high-value products such as semiconductors, electrical and electronics (E&E) products and pharmaceuticals that are typically transported by air.
According to Department of Statistics Malaysia (DOSM) figures presented by the Ministry of Transport, the value of goods transported by air reached RM644.08 billion between January and May this year, exceeding the RM618.02 billion moved by sea during the same period. Land transport accounted for RM192.82 billion over the period.
Transport Minister Anthony Loke Siew Fook said the development should not be interpreted as a shift away from maritime trade as Malaysia remained heavily dependent on shipping in terms of cargo volume.
“From the perspective of trade volume, Malaysia still depends primarily on sea transport. Most cargo used for exports and imports continues to move by sea,” he told reporters at the groundbreaking ceremony of the Subang MRO Logistics Complex at Subang Aerotech Park today.
However, he said the value of goods transported by air had risen due to the increasing importance of high-value, low-volume products.
“There are certain components and products that rely heavily on air transportation. These include chips, semiconductors, electrical and electronics products and pharmaceuticals. These products are transported using air cargo services,” he said.
Loke said air cargo had become an increasingly important component of Malaysia’s trade and logistics strategy, adding that the Cabinet had recently tasked the Ministry of Transport with leading efforts to streamline airport processes and improve the country’s competitiveness in air cargo.
“We are currently working together with Malaysia Airports to ensure that the time required for cargo handling, particularly customs clearance, can be shortened. If these processes can be accelerated, Malaysia will become a more competitive location for air cargo transportation,” he said.
He added that approximately 75% of Malaysia’s air cargo trade value was attributable to Penang International Airport due to the concentration of semiconductor manufacturers in the state.
“Most of the semiconductor industry in Malaysia is based in Penang. That is why air cargo plays such an important role there,” he said.
To diversify air cargo activity beyond Penang, Loke said the government aimed to position Kuala Lumpur International Airport as a regional Asean air cargo hub and was also working with the Sabah state government to establish an air cargo base at Kota Kinabalu International Airport’s Terminal 2.
He said similar efforts were underway at Senai Airport in Johor.
Asked whether the government had set a target for air cargo growth, Loke said Malaysia saw no need to impose a ceiling on the sector given its relatively low base and substantial growth potential.
“The potential is very large. The sky is the limit. The potential of Malaysia’s aerospace industry, including air cargo, is huge.”
“In the past, we did not fully utilise our strategic advantages,” he said.
