Malaysia remains open to foreign stake in strategic assets: Loke
Citing MMC Corp Bhd's divestment of its stake in MMC Ports Holdings Bhd to foreign entities, seen as a pragmatic approach to corporate restructuring and foreign investment in the transport sector, he said Malaysia has long allowed foreign stakes in its ports.
'Regarding the concession, our position and policy are very clear – similar to Westports Holdings Bhd and MMC, foreign partners are allowed, but only up to a 49% stake,' Loke told reporters at the opening ceremony of Malaysia Maritime Week 2025 today.
However, he emphasised that Malaysian companies must retain at least a 51% stake in any port concession to ensure local control.
Loke added that any divestment of shares to foreign entities must be reported to and approved by the Ministry of Transport and the Public Private Partnership Unit. 'This is because it involves their concession.'
Loke said the divestment of shares to foreign companies is not a new development.
'For instance, at the Port of Tanjung Pelepas (PTP), a 30% stake has long been held by Mærsk Line,' he noted.
He added that the ongoing discussions about MMC Group potentially divesting shares to foreign partners are purely commercial decisions made by the company.
'MMC currently holds concessions for Penang Port, Northport, PTP and several others. These matters fall under the company's commercial discretion,' Loke said.
MMC Port Holdings – a wholly owned subsidiary of MMC Corp Bhd, which is controlled by tycoon Tan Sri Syed Mokhtar Albukhary – is planning a major divestment exercise as part of its upcoming initial public offering (IPO).
The company, which operates several key ports including PTP, Northport, Penang Port and Johor Port, is expected to sell up to a 30% stake through an offer for sale.
According to reports, MMC Ports aims to raise about US$2 billion (RM8.5 billion) from the IPO, which would value the entire group at nearly US$7 billion (RM29.6 billion).
In 2024, MMC Ports handled about 18 million TEUs across its major container ports, and it is the largest container port operator in Malaysia. The group also managed non-containerised cargo (bulk and breakbulk), totalling around 36.5 million tonnes in 2024, making it the second-largest non-container operator in Malaysia after Bintulu Port.
Further, a 30% port tariff hike set to take effect this month is expected to enhance earnings and support the valuation story ahead of the IPO.
Moving on, Loke hopes ongoing negotiations with the United States on potential imposition of a 25% tariff on Malaysia from Aug 1 will help mitigate the impact on the country's maritime industry and ensure it remains competitive.
He said the maritime sector is performing well, supported by higher trade volumes at ports operated by MMC Corp and Westports.
'Currently, we are doing well. If you look at our ports, they are performing strongly because volumes have increased,' he said.
'We are awaiting the announcement by Lloyd's List this August that will confirm that Port Klang is among the top 10 busiest ports in the world,' he added.
Loke said the government is doing its utmost to leverage all available diplomatic channels to secure a better deal with the US. 'We are using our diplomatic advantages to negotiate a better outcome so that we can hopefully mitigate any negative impact.'
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