Laos and Malaysia establish strategic rail-sea trade link
VIENTIANE (Vientiane Times/ANN): Laos and Malaysia have established a strategic partnership to boost cross-border trade via a rail-sea route, with the exchange of a Memorandum of Cooperation between Penang Port Sdn Bhd (PPSB) and Thanaleng Dry Port (TDP) in Malaysia on Sunday.
The document was exchanged between MMC Port Holdings Sdn Bhd Chief Executive Officer Datuk Azman Shah Mohd Yusof and PTL Holding Co., Ltd. (PTLH) Chairman and Founder, Dr Chanthone Sitthixay, witnessed by Prime Minister Sonexay Siphandone and his Malaysian counterpart Datuk Seri Anwar Ibrahim, Bernama reported on the day.
The Lao Prime Minister is in Malaysia on an official visit that includes attending the 46th Summit of the Association of South-East Asian Nations (Asean) and related meetings, scheduled to take place on May 26-27, at the invitation of PM Anwar.
The partnership between the two companies is part of the broader effort to bolster economic ties between the two Asean members and the rest of the region.
PPSB is a subsidiary of MMC Port, while PTLH is the parent company of Vientiane Logistics Park Co., Ltd., which manages the Thanaleng Dry Port - Laos' integrated logistics centre and the single window customs clearance point on the Laos-China Railway.
The partnership is part of a broader initiative under the regional Pan-Asia Railway Network, integrating the China-Laos Railway to create a strategic trade route linking southern China through Laos and Thailand, to Malaysia's west coast.
Thanaleng Dry Port managing director Sakhone Philangam told Bernama that the collaboration marked a significant milestone in transforming Laos into a key logistics player, building on its landlocked status.
He expected that the partnership would benefit Laos economically, as the country's small-scale economy needs to rely on higher trade volumes through cooperation with regional players like Malaysia and China.
'In logistics, you need agglomeration and massification. We don't have that volume, so this partnership will enable us to tap into a larger logistics network,' he was quoted as saying.
The collaboration will involve the sharing of operational knowledge, joint marketing efforts, system integration, simplification of documentation processes, harmonisation of infrastructure, and short-term personnel exchanges.
MMC Port is a holding company that operates five ports across Peninsular Malaysia, namely the PPSB, Port of Tanjung Pelepas, Johor Port Bhd, Northport (Malaysia) Bhd, and Tanjung Bruas Port Sdn Bhd, making it Malaysia's largest port operator.
Meanwhile, PTLH is a major Lao conglomerate that operates a wide range of businesses including logistics, finance, railway, industrial and investment zones, and gold (Bullion Bank).
Azman Shah said the initiative, which is aligned with efforts to enhance ASEAN connectivity, will reduce transit times and logistics costs, improve supply chain efficiency, and boost regional economic growth.
'We are pleased to contribute to Thanaleng Dry Port's efforts to realise Laos' national strategy to transform from a land-locked country to a land-linked nation,' the CEO was quoted as saying.
This is the second partnership that the Thanaleng Dry Port has secured with a Malaysian company.
Earlier, it signed an agreement with Mutiara Perlis Sdn Bhd to facilitate inland port services, leveraging the existing multimodal integration including the rail network of which the TDP is a vital part.
Containing the standard-gauge Laos-China Railway and the one-metre gauge Laos-Thailand rail track that run side by side to enable seamless connection, Thanaleng Dry Port has facilitated rail freight expresses linking Malaysia to several Chinese cities, bolstering cross-border trade.
In 2024, total bilateral trade between Laos and Malaysia exceeded US$43 million, up from just US$30 million in 2023, according to the Lao Ministry of Foreign Affairs.
Malaysia is Laos' fourth-largest foreign investor, with total investments amounting to US$946 million across 88 projects, in sectors including renewable energy, transport, telecommunications, construction, banking and hospitality. - Vientiane Times/Asia News Network
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
44 minutes ago
- The Star
Manufacturing sector raises ‘triple blow' concerns
PETALING JAYA: A textile and apparel trade group has urged the government to engage with industry stakeholders to re-evaluate the tax scope of the expanded Sales and Service Tax (SST), which starts today. Malaysian Knitting Manufacturers Association president Wayne Lian said this is to ensure the policy is sustainable and flexible. He explained that the expanded SST will create a 'triple blow' to Malaysian businesses. Lian said the detrimental effects would be due to rising costs, higher tax burdens and inflation. He noted that the global geopolitical tensions have pushed up raw material and logistics costs, significantly compressing profit margins. 'However, beyond global instability, Malaysian businesses are also grappling with a series of domestic policy and cost burdens,' Lian said in a statement yesterday. He added that the manufacturing sector is facing multiple challenges through several policies that could affect their financial stability. 'In recent months, manufacturers have faced multiple challenges, including the increase in minimum wage, diesel subsidy rationalisation, higher electricity and natural gas tariffs, implementation of the e-invoicing system, mandatory 2% EPF contributions for foreign workers, fluctuations in currency exchange rates, and rising raw material prices. 'These cumulative factors have substantially driven up operating expenses, placing unprecedented strain on businesses, particularly small and medium enterprises,' he said. Lian also said that the tariffs imposed by the United States on a wide range of imported goods have disrupted the global trade flows and indirectly affected Malaysian businesses. 'At the same time, Malaysia is facing a surge in low-priced imports from China, as Chinese manufacturers, faced with overcapacity and global trade restrictions, are dumping products into regional markets. 'This practice is undercutting domestic industries and placing further pressure on local producers already struggling with tight margins,' he added.
The Sun
an hour ago
- The Sun
PM Anwar's first working visit to Italy from July 1-3
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim is scheduled to undertake a three-day working visit to Italy, his first to the country, according to a statement from Wisma Putra. The statement said that the visit, from July 1 to 3, is at the invitation of his counterpart, Giorgia Meloni. He will be accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke Siew Fook, Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, and Defence Minister Datuk Seri Mohamed Khaled Nordin. According to Wisma Putra, during the visit, the Prime Minister is slated to hold a bilateral meeting with Meloni at the Chigi Palace in Rome on July 3. 'This meeting provides an opportunity for both leaders to assess the progress of Malaysia-Italy relations and explore new cooperation opportunities, especially in the fields of economy, defence technology, and energy,' the statement read. Both parties will also exchange views on regional and international issues of mutual interest, including the ASEAN-Italy Development Partner Relations, ASEAN-European Union Dialogue Relations, and the situation in the Middle East. 'The Prime Minister will also outline Malaysia's priorities during its ASEAN Chairmanship in 2025 and ASEAN's efforts in addressing regional and global challenges,' it added. Wisma Putra informed that the Prime Minister is also scheduled to officiate the 'Malaysia-Italy Economic Partnership Roundtable,' which will be attended by Malaysian and Italian industry leaders to discuss cooperation opportunities in bilateral investment and trade on July 2. Additionally, Anwar is slated to attend a meeting with Muslim community leaders in Italy and a get-together with the Malaysian diaspora. The long-standing bilateral relationship between Malaysia and Italy is strong and mutually beneficial, supported by continuous growth in trade and investment, as well as people-to-people connectivity. Last year, total trade between Malaysia and Italy recorded a two percent increase to RM14.61 billion (US$3.18 billion) compared to 2023. For the period of January to May this year, total trade continued to show positive performance with a 3.3 percent increase to RM6.50 billion (US$1.48 billion) compared to the same period in 2024. Italy is Malaysia's fifth-largest trading partner among European Union countries and the third-largest importer of Malaysian palm oil from the bloc for 2024. After concluding his visit to Italy, the Prime Minister is expected to depart for France for a two-day official visit starting July 3.
The Star
2 hours ago
- The Star
Umno general assembly postponed to November due to Sabah polls
KUALA LUMPUR: The 2025 Umno General Assembly, originally scheduled for August, has been postponed to Nov 26-29 in view of preparations for the upcoming Sabah state election. Umno Secretary-General Datuk Dr Asyraf Wajdi Dusuki, in a statement, said the decision was made during the Umno Supreme Council (MT) meeting held at Menara Dato' Onn, World Trade Centre (WTC) Kuala Lumpur on Monday (June 30) night. The meeting chaired by Umno president Datuk Seri Dr Ahmad Zahid Hamidi and was also attended by vice presidents Datuk Seri Wan Rosdy Wan Ismail and Datuk Seri Johari Abdul Ghani, along with other supreme council members. In March, the Umno supreme council had initially set this year's General Assembly for Aug 20 to 23. The five-year term of the Sabah State Legislative Assembly is scheduled to expire automatically on Nov 11 this year, paving the way for the 17th Sabah state election. Additionally, Asyraf Wajdi said Umno will conduct a mid-term review of the effectiveness and performance of the Malaysian unity government, including the achievements of the Umno leadership within the administration, and in government-linked and affiliated agencies. Meanwhile, he said Umno sees no justification for parties in the unity government to absorb members from other component parties, in order to prevent misunderstandings and disharmony within the government. He added that the meeting also decided that the supreme council may consider any appeal submitted by members subjected to disciplinary action, in line with Clause 20.12 of the Umno Constitution. Asyraf Wajdi also expressed Umno's appreciation to the Umno Liaison Bodies of Terengganu and Perak for assisting in the management and delivery of aid to the victims of the tragic bus accident in Gerik on June 10, which claimed the lives of 15 students from Universiti Pendidikan Sultan Idris. - Bernama
