MIDF: Strait of Hormuz closure poses limited risk to Malaysia
In a note today, the investment bank said that Malaysia's main Asia-Europe trade corridor, which contributes less than 15 per cent to the total volume at Westports, bypasses Hormuz entirely.
"Short-term port congestion and berth delays may still occur if rescheduled calls and feeder realignments spill into the region in the second half of 2025 (2H 2025).
"While Red Sea shipping routes have largely normalised, heightened tensions in the Strait of Hormuz present a fresh risk to regional container flows, following a recent Iranian parliamentary vote to close the Strait in retaliation for United States strikes on multiple nuclear facilities inside Iran," it said.
MIDF Amanah said that the closure would block access to major Gulf ports, such as Jebel Ali and Dammam, forcing shipping lines to either suspend Gulf calls or reroute cargo through alternative hubs with limited capacity.
"This may cause temporary vessel bunching and higher yard utilisation at regional transhipment hubs as shipping lines adjust loops, reposition empty containers, and manage scheduling disruptions," it said.
However, MIDF Amanah said that the outlook for 2H 2025 remains fluid, as the tariff reprieve is short-term and downside risks persist, including weak European demand, vessel overcapacity, and geopolitical disruptions that could dampen momentum.
The bank maintained its "neutral" call for the port and logistics sector.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
36 minutes ago
- Free Malaysia Today
Ringgit opens higher against major, regional currencies
KUALA LUMPUR : The ringgit opened higher on Thursday as the US dollar weakened following the release of the Federal Open Market Committee (FOMC) minutes, an analyst said. The local currency also strengthened against other major and regional units. At 8am, the ringgit rose to 4.2190/4.2335 from Wednesday's close of 4.2250/4.2290. The analyst said the US Dollar Index (DXY) slipped 0.05% to 98.218, as the FOMC minutes delivered mixed signals to investors. MORE TO COME
Malaysian Reserve
7 hours ago
- Malaysian Reserve
K1 Speed to Award Nearly $80,000 at 2026 E-World Championship
IRVINE, Calif., Aug. 20, 2025 /PRNewswire/ — Next spring, racers from K1 Speed locations spanning 30 states and nine countries will compete for a $79,000 prize pool during the 2026 K1 Speed E-World Championship at K1 Circuit in Winchester, Calif. This event will decide the three world champions by division (junior, teen and adult) and award the largest single-event prize pool in all of competitive karting. Path to E-World Championship Every K1 Speed center runs its own junior, teen and adult race leagues, called Challenge GP. At the end of the 12-month season, the top three drivers from each class and center advance to their respective state championship. The top three division finishers at the state championships are invited to the National Championships, also held at K1 Circuit Winchester. The national podium finishers then earn their place on the grid for the E-World Championship, competing against K1 Speed drivers from England, Italy, France, Mexico, Canada, China, South Korea, and Puerto Rico. 'The 2026 K1 Speed E-World Championship will be our fourth consecutive year bringing together the best talent K1 Speed centers have to offer,' said Content Marketing Manager Ryan Jurnecka. 'We are proud to provide a platform for amateur racers to learn, thrive and advance further into the world of competitive racing.' $79,000 Prize Pool Breakdown Adults: 1st Place: $25,000 2nd Place: $15,000 3rd Place: $7,500 Teens: 1st Place: $10,000 2nd Place: $5,000 3rd Place: $2,500 Juniors: 1st Place: $8,000 2nd Place: $4,000 3rd Place: $2,000 About K1 Speed K1 Speed is the premier indoor electric kart racing brand. The family-owned business was founded by David and Susan Danglard in 2003 to bring European-style electric kart racing to North America. The platform's 100+ kart racing centers span 30 states and 10 countries. K1 Speed's unique entertainment concept operates racing centers that feature electric karts, which provide superior safety, performance, and environmental benefits over traditional gas-powered models. The brand appeals to a broad consumer base, including men and women of all ages, and targets arrive-and-drive customers, private parties, and corporate events. In addition to electric karting, K1 Speed centers offer food and beverage options through its onsite Paddock Lounge concept, racing simulators, arcade games, race gear, racing leagues, and championship events.
Malay Mail
13 hours ago
- Malay Mail
Hong Leong Bank Wins Three Awards at Asian Banking & Finance Retail Banking Awards, Affirming its Transformative Journey Towards Becoming the Best Run Bank in Malaysia
HLB's Head of SME Banking, Woon Siew Hoong [Pic 1, left] and HLB's Head of Cash Management, Alina Grace Tan Kui Kwoon [Pic 2, left] receiving their awards at the Asian Banking & Finance Retail Banking Awards 2025 KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 20 August 2025Hong Leong Bank ("HLB" or the "Bank") has won awards in three coveted categories at the Asian Banking & Finance ("ABF") Retail Banking Awards 2025, a testament to the significant progress the Bank has made in its 5 year bankwide transformation journey.A pivotal aspect of HLB's bankwide transformation and success story is its established leadership as a prominent SME bank. For the fourth consecutive year, HLB has been named the Best SME Bank in Malaysia by ABF. This recognition directly reflects the Bank's diverse product offerings, pioneering digital innovations, and personalized advisory services, all meticulously designed to cater to the varied needs of its customers. HLB's unwavering commitment to customer-centricity has translated into tangible success, with the Bank's SME loans and financing portfolios achieving an impressive 11.6% year-on-year ("y-o-y") growth, nearly double the industry average of 6.7%. This significant growth not only reinforces HLB's strong market position but also vividly demonstrates its dedication to providing a seamless banking experience through increased accessibility and convenience. The Bank achieves this through its extensive branch network, flexible out-of-branch account openings, and intuitive digital platforms, all serving as effective touchpoints to ensure a comprehensive and effortless banking journey for every its strong performance within the corporate banking sector, HLB has also been recognized as the Domestic Cash Management Bank of the Year. This award underscores how the Bank empowers its corporate and financial institution clients with sophisticated cash management solutions that streamline operations and enhance financial control, further contributing towards HLB's bankwide transformation plan. By leveraging the Bank's real-time API integration, businesses can automate fund transfers to beneficiaries on a same-day basis, eliminating manual intervention and ensuring timely access to funds. The Bank's cash consolidation services also enable clients to streamline cash management by centralizing funds into a single account for better liquidity oversight and easier reconciliation. This comprehensive suite of services has led to the Bank consistently managing over 700 corporate clients with their cash management needs, boasting a remarkable 95.52% customer retention rate and over 99% utilization rate of its cash management with its 5 year bankwide transformation plan, HLB has invested significantly in its digital capabilities, leading to the strategic implementation of AI, effective data management, and innovative digital banking solutions. This commitment to digital excellence culminated in the Bank winning the Digital Transformation of the Year award for its groundbreaking collections 2018, HLB has embarked on a pervasive transformation journey within its Collections team, fundamentally reshaping the collections process with an industry-first, fully integrated, web-based collections platform. The platform provides the Bank with a 360-degree view of its customers, strengthened by real-time information sharing, a predictive dialing system, an AI humanized voice bot, and secured remote working capabilities. These innovations have resulted in a 47% surge in monthly call volume and allowed 20% of HLB's collections officers to be redeployed to higher-value tasks, showcasing the tangible benefits of this digital Lam, HLB's Group Managing Director and CEO, commented, "This isn't just about winning awards; it's about reimagining the way we do banking. Two years ago, we set out on our bankwide transformation plan, and these three accolades prove that we are on the right track. This vision has defined our operating cadence, where we have reevaluated existing structures, reimagined the customer journey, and unleashed a wave of innovation throughout the Bank that is redefining what we can be to our customers. Looking ahead, we strive to continue on our transformation journey, implementing digital innovations while preserving that human touch to ensure we provide an elevated banking experience for all our customers."For more information on HLB's business banking solutions, please visit: Hashtag: #HongLeong #HLBB The issuer is solely responsible for the content of this announcement. About Hong Leong Bank Berhad Please visit
