SUBANG JAYA: The government is implementing targeted strategies to reduce Malaysia’s trade deficit in the transport services sector, focusing on enhancing local industry capabilities.
Transport Minister Anthony Loke Siew Fook highlighted the need to strengthen high-performing domestic sectors, particularly oil and gas services, to improve export potential.
Loke acknowledged Malaysia’s reliance on foreign shipping lines as a key challenge, noting that 96.4% of the country’s trade is seaborne.
“Most of our exports and imports depend on international shipping firms because our local container shipping industry lacks global reach,“ he said after launching Malaysia Maritime Week 2025.
Global shipping consolidation has left smaller economies like Malaysia struggling to compete.
However, Loke emphasised efforts to leverage domestic strengths, such as expanding oil and gas logistics services using local vessels.
“By increasing service exports in sectors where we excel, we can gradually narrow the trade gap,“ he added.
Malaysia’s transport services deficit widened to RM9.3 billion in Q1 2025, driven by maritime transport costs.
Despite being a top trading nation with world-class ports, the country remains dependent on foreign shipping, contributing to a persistent services deficit.
The transport and storage sector grew 9.5% year-on-year in Q1 2025, reflecting strong demand for freight and logistics services.
Loke stressed that boosting local maritime capabilities aligns with broader efforts to improve Malaysia’s balance of payments. – Bernama
