Latest news with #MalaysiaMaritimeWeek2025
Daily Express
a day ago
- Business
- Daily Express
Government to narrow trade deficit in transportation services sector
Published on: Wednesday, July 16, 2025 Published on: Wed, Jul 16, 2025 By: Bernama Text Size: According to the latest data from the Department of Statistics Malaysia (DoSM), the services sector experienced a year-on-year growth of 5.0 per cent in 1Q 2025. SUBANG JAYA: The government is adopting a targeted approach to narrow the country's trade deficit in the services sector, particularly in transportation services, said Transport Minister Anthony Loke Siew Fook. He emphasised that this can be achieved by strengthening high-performing local industries and expanding export-oriented capabilities, especially in the oil and gas services sector. Advertisement While acknowledging that Malaysia continues to record a deficit in its transportation services due to its heavy reliance on international shipping liners, Loke said structural limitations in the container shipping industry remain a key challenge. 'Most of our exports and imports rely on foreign shipping lines, as we do not have a strong international container shipping industry. Although there are local shipping firms, they primarily serve the domestic market,' he told reporters after officiating Malaysia Maritime Week 2025, here on Tuesday. Loke said that global shipping is currently dominated by a few major players following a wave of consolidation, making it difficult for smaller or emerging economies like Malaysia to compete in the international logistics arena. However, he said the government is not standing still. Efforts are being made to narrow the deficit by boosting sectors where Malaysia has strong domestic capabilities. 'For example, in the oil and gas sector, we have competitive local companies. By expanding our services in this area, including the use of local oil tankers for international operations, we aim to increase our service exports and reduce the trade gap,' Loke added. The move, he said, aligns with the broader national strategy to enhance Malaysia's services trade performance, tap into niche maritime capabilities, and gradually strengthen the country's balance of payments (BOP) position. In his speech, the minister noted that the country's BOP in the first quarter (1Q) of 2025 saw the transport services account remain a key component of the services deficit. He said the transport account registered a larger deficit of RM9.3 billion in 1Q 2025, compared with a deficit of RM8.0 billion in the previous quarter, mainly contributed by the maritime transport service sectors, especially the ocean freight fraction. 'For Malaysia, the maritime BOP highlights a core economic paradox: it is a world-leading trading nation with globally ranked ports, yet it has a structural dependency on foreign shipping to carry its trade. 'This leads to a persistent and significant deficit in its sea transport account, which is a major contributor to the overall services deficit,' Loke explained. He said about 96.4 per cent of Malaysia's trade is transported by sea. According to the latest data from the Department of Statistics Malaysia (DoSM), the services sector experienced a year-on-year growth of 5.0 per cent in 1Q 2025. The main driver of this growth was the transportation and storage sub-sector, which expanded by 9.5 per cent, supported by high demand for ocean freight, ports, and logistics services—reaffirming Malaysia's vital role in regional and global supply chains. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Sun
2 days ago
- Business
- The Sun
Malaysia remains open to foreign stake in strategic assets: Loke
PETALING JAYA: Malaysia has a longstanding policy that allows foreign participation in its strategic assets, Transport Minister Anthony Loke said. 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.'
The Sun
2 days ago
- Business
- The Sun
Malaysia targets transport trade deficit with local industry boost
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
Barnama
2 days ago
- Business
- Barnama
Govt Taking Targeted Measures To Narrow Trade Deficit In Transportation Services Sector
SUBANG JAYA, July 15 (Bernama) -- The government is adopting a targeted approach to narrow the country's trade deficit in the services sector, particularly in transportation services, said Transport Minister Anthony Loke Siew Fook. He emphasised that this can be achieved by strengthening high-performing local industries and expanding export-oriented capabilities, especially in the oil and gas services sector. While acknowledging that Malaysia continues to record a deficit in its transportation services due to its heavy reliance on international shipping liners, Loke said structural limitations in the container shipping industry remain a key challenge. 'Most of our exports and imports rely on foreign shipping lines, as we do not have a strong international container shipping industry. Although there are local shipping firms, they primarily serve the domestic market,' he told reporters after officiating Malaysia Maritime Week 2025, here today. Loke said that global shipping is currently dominated by a few major players following a wave of consolidation, making it difficult for smaller or emerging economies like Malaysia to compete in the international logistics arena. However, he said the government is not standing still. Efforts are being made to narrow the deficit by boosting sectors where Malaysia has strong domestic capabilities. 'For example, in the oil and gas sector, we have competitive local companies. By expanding our services in this area, including the use of local oil tankers for international operations, we aim to increase our service exports and reduce the trade gap,' Loke added. The move, he said, aligns with the broader national strategy to enhance Malaysia's services trade performance, tap into niche maritime capabilities, and gradually strengthen the country's balance of payments (BOP) position. In his speech, the minister noted that the country's BOP in the first quarter (1Q) of 2025 saw the transport services account remain a key component of the services deficit.
The Star
2 days ago
- Business
- The Star
Maritime laws to be harmonised, but rights of Sabah, Sarawak stay, says Transport Minister
PETALING JAYA: Maritime laws will be harmonised to ensure better uniformity throughout the nation but the government assures it will not encroach into the authorities of Sabah and Sarawak, says Anthony Loke. The Transport Minister said that the current maritime laws need to be updated for Malaysia to stay in line with global developments and further enhance the maritime industry. Loke said this to the media after officiating the Malaysia Maritime Week 2025 at a hotel here Tuesday (July 15). 'We are not aiming to combine all three ordinances - (state, Federal and Sabah and Sarawak), but to harmonise them so that policies and regulations are consistent nationally. This is a challenge. Some ordinances are sometimes inconsistent with each other. Hence, we need to sit down, discuss, and create a framework to harmonise, not to take away powers. 'This is very important. I want to stress respect for the rights of Sabah and Sarawak regarding federal transport. We will continue to uphold and respect their maritime rights. 'But we need to discuss and harmonise legislation so we can move forward better as a country. 'What we are currently implementing is to review the legislative framework, especially laws and facts involving Malaysia as well. 'Many of these laws are old, not reviewed for a long time, and perhaps many parts are no longer relevant or not in line with current developments that we need to reconsider so that our country's maritime industry becomes more active. 'The Malaysia Maritime Law and Reform Committee is chaired by former Federal Court judge Tan Sri Nalini Pathmanathan, who is also an active legal expert. There are many other experts in the committee who will contribute proposals for amendments to the laws so that they can be brought to Parliament within a year. 'We have given the committee one year to review the six laws. We told them they don't have to wait a full year to complete the review; whenever they are ready, we will proceed with registration, starting with the ones regarding the Malaysian shipping. Once the review is done, of course, we will look at legislation and draft laws. 'This year and onwards, every particular sitting will bring something to Parliament for amendments. 'At the end of this year's parliamentary session, we will present a new view - so as to create a source of power to establish a special court for maritime matters, called Admiralty Court. 'Right now, we do not have a special court for maritime relief. Currently, the High Court handles maritime cases, with one of the High Courts specialised in maritime. What we want is to create a court to give future courses for our capacity. 'This will make our judiciary and legal system more complete in handling maritime disputes and issues,' said Loke. Loke also stated that Malaysia's reliance on international shipping has led to deficits in the country's balance of payment (purchase and sales) in the transport industry. 'Most of our exports - particularly international exports - are handled by foreign shipping lines because we do not yet have a strong local international shipping industry. We do have local shipping companies, but their operations are mostly domestic. 'So when it comes to international exports, a large portion is carried by foreign-owned vessels. 'The industry itself is highly consolidated now, making it very difficult for local players to compete with large international shipping lines. 'That said, we are working to reduce this gap. For example, in certain segments such as oil and gas, we have relatively strong local companies. So we are focusing more on those areas and trying to export our services - particularly in maritime logistics. "Take oil tankers, for instance. We hope our local oil tankers can secure more business and expand their international operations, helping us to reduce the transportation-related trade deficit. 'If you look at our ports, our volumes have increased significantly. "In fact, we are preparing for an announcement by Lloyd's List this coming August, which is expected to confirm that the Port of Tanjung Pelepas (PTP) will be ranked among the top 10 busiest ports in the world. 'As of June 2025, we've seen a consistent increase - with almost 10% monthly growth in port throughput (PDP) so far this year,' said Loke. Earlier in his speech at the event, Loke said that the maritime balance of payments highlights a core economic paradox. 'It is a world-leading trading nation with globally ranked ports, yet it has a structural dependency on foreign shipping to carry its trade. This leads to a persistent and significant deficit in its sea transport account, which is a major contributor to the overall services deficit. 'As stated in the Fourth Malaysia Plan (1981-1985), the main policy objective is to make Malaysia a 'Maritime Nation'. Making Malaysia a maritime nation can therefore be interpreted as promoting the growth of all sectors that are directly involved in this industry,' said Loke.
