Latest news with #SmartLogisticsComplex
BusinessToday
4 days ago
- Business
- BusinessToday
Logistics: Red Sea Stabilised But New Risks Emerge In Straits Of Hormuz
MIDF Amanah Investment Bank Bhd (MIDF Research) has maintained a NEUTRAL rating on the ports and logistics sector, with Buy on Tasco and a target price of RM0.68, citing its favourable valuation and protective pricing mechanisms amid freight volatility. Container throughput in Malaysia rose 6% year-on-year in the first quarter of 2025, reaching 7.7 million TEUs, boosted by frontloading activities ahead of rising US tariffs. The Port of Tanjung Pelepas saw the strongest growth at 11%, driven by its participation in the Maersk-Hapag Gemini alliance. Meanwhile, Port Klang recorded a 2% gain, while Penang and Johor reported contractions. Spot freight rates from Southeast Asia to the US West Coast surged between late March and April, supporting the spike in volumes. Drewry revised its global container volume growth forecast for 2025 to 1.9%, reversing earlier expectations of a decline, which the house said suggests further near-term upside for transhipment ports. However, the second half of the year remains uncertain amid tariff uncertainties, vessel oversupply, and tepid European demand. MIDF Research noted that the Red Sea shipping routes have largely stabilised, but new risks have emerged from geopolitical tensions in the Strait of Hormuz, following an Iranian parliamentary vote to shut the channel. Although Malaysia's Westports is unlikely to be directly affected due to its route bypassing Hormuz, regional ports may face vessel bunching and increased yard utilisation if shipping lines are forced to reroute. The investment bank flagged that short-term berth delays could still occur in the region as feeder alignments adjust. Warehousing demand remains strong, especially in the Klang Valley, where prime logistics space is being absorbed steadily thanks to e-commerce and ongoing manufacturing investment. Rents in Johor are gradually increasing due to cross-border spillover effects from Singapore and data-centre driven activity, while Penang's rates have levelled off with new capacity easing pressure. Vacancy rates across the country remain below 5%, with most new facilities already pre-leased. MIDF expects the Smart Logistics Complex incentives under Budget 2025 to further support the sector's medium-term rental stability. Stricter truckload limits will be enforced from July 1, with overloaded vehicles denied port access. This includes a nationwide ban on tandem container configurations by January 2026. MIDF cautioned that while safety will improve, haulage costs are likely to rise, and inland delivery times may face some initial disruption as logistics firms adapt their fleet operations. Tasco remains the sector's top pick for MIDF Research, as the company trades below its historical average and has implemented a clause to adjust prices if rates swing more than 10% above tender levels. With 80% of its forwarding business conducted through tenders, Tasco also benefits from customers favouring short-term contracts during volatility, which typically offer better margins. Earnings are expected to improve from contract logistics wins and Investment Tax Allowance support. Related
New Straits Times
29-05-2025
- Business
- New Straits Times
YCH Group's RM500mil logistics hub at SD Property's Bukit Raja township breaks ground
KUALA LUMPUR: Singapore-based YCH Group held a groundbreaking of its largest supply chain facility in Malaysia in Bandar Bukit Raja, Selangor today. Located at Sime Darby Property Bhd's Bukit Raja township, the RM500 million project reflects YCH's long-term commitment to Malaysia's regional supply chain development and a significant step in realising the country's vision as a leading logistics and trade hub in Asean. As part of YCH Group's SGConnect initiative, the project is poised to serve as a key enabler of regional connectivity, supporting smoother trade flows and future-ready logistics infrastructure. Investment, Trade and Industry Minister Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz hopes YCH's investment would be more inclusive by enabling SME exporters to also access the global market. "When trade flows seamlessly, investors see greater opportunities, fuelling further growth and innovation. "This is what will support our New Industrial Master Plan's goals to increase our competitiveness and position Malaysia a key manufacturing and services hub for Asean and beyond," he said. Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said YCH, as the first recipient of MIDA's Smart Logistics Complex incentive, sets a powerful precedent for the nation's integrated smart logistics future. "This achievement reflects our commitment to attracting high-impact investments and strengthening Malaysia's supply chain ecosystem through innovation and automation. "The incentive aligns perfectly with thei Kuala Lumpur Declaration: Asean, supporting our vision of a digitally advanced, economically resilient Asean region," he added. YCH executive chairman Dr Robert Yap said the project is a major step forward in setting new standards of logistics excellence, supporting Malaysia's growth as a world-class supply chain leader. "Our investment in Fusionaris and advanced technologies reflect our commitment to regional connectivity, efficient operations and sustainable practices. "We are also dedicated to training local talent, empowering them with essential skills to support Malaysia's journey as a preferred destination for global businesses," he said. The Supply Chain and Logistics Academy (Scala), an industry-level development academy, will be hosted at the hub. It offers training programmes to equip local talent with the skills needed to thrive in tomorrow's logistics landscape, ultimately enabling Malaysia's workforce to remain competitive on the global stage. This milestone highlights the successful collaboration between YCH and SD Property in bringing a world-class supply chain hub to life within one of Selangor's most strategically connected and mature townships. Bandar Bukit Raja is a 2,158-hectare integrated township known for its sustainable design and thriving industrial ecosystem. With close to 60 per cent of its landbank allocated for industrial use, its is home to Malaysia's first GreenRE Platinum-rated managed industrial park, a preferred destination for multinational corporations seeking ready infrastructure, connectivity and ESG-aligned developments.
