It's time we build on our strong logistics infrastructure
From Wan Agyl Wan Hassan
As Malaysia assumes the Asean chairmanship in 2025, we are presented with an exciting yet humbling opportunity. Chairing Asean is a moment of pride, but real leadership demands honest reflection and pragmatic action.
Malaysia's logistics infrastructure is strong, with Port Klang handling an impressive 14.06 million TEU containers in 2023 and the Port of Tanjung Pelepas managing 10.48 million TEUs, keeping both ports among the busiest in the world.
Our logistics performance is improving, with Malaysia climbing from 32nd in 2016 to 26th in the 2023 World Bank's logistics performance index, marking a significant advancement.
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However, challenges remain. Our neighbours are progressing rapidly, with Singapore's ambitious Tuas Mega Port set to handle 65 million TEUs annually upon full completion, dramatically boosting their maritime dominance.
Vietnam, despite infrastructure improvements, continues facing significant hurdles such as high logistics costs, which represent around 20% of their gross-domestic product compared to Malaysia's more manageable 13%.
We must acknowledge internal obstacles openly—such as fragmented governance, bureaucratic inefficiencies, and regulatory complexity. These challenges require more than just new committees or masterplans; they demand practical, thoughtful reforms.
The Pan-Asia railway network offers Malaysia significant regional opportunities.
While the China–Laos railway has been operational since 2021, and Thailand steadily progresses towards completing its section by around 2030, Malaysia is nearing completion of the critical Gemas–Johor Bahru electrified double track project, set for completion in 2025.
This project significantly improves domestic connectivity, laying a solid foundation for future cross-border integration.
Regarding the Kuala Lumpur–Singapore High-Speed Rail, Malaysia's cautious approach is justified. The government remains clear: this project will proceed only if entirely privately financed. Despite evaluating several private-sector proposals, the HSR's future remains uncertain, and responsible governance means proceeding only with commercially viable projects.
Here are five practical, immediate steps Malaysia can humbly and effectively take to strengthen our logistics position:
Streamline logistics governance: Rationalising overlapping responsibilities into a streamlined and empowered National Logistics Task Force. Even better re-establish the single transport authority.
Quick-win multimodal integration: Rapidly execute rail-linked inland ports, like those in Serendah and Nilai, to enhance connectivity visibly and quickly.
Transparent project evaluations: Ensure rigorous, transparent cost-benefit analyses for new infrastructure, emphasising realistic demand and long-term sustainability.
SME-focused logistics support: Boost SMEs through improved distribution hubs, cold-chain facilities, and efficient last-mile delivery systems.
Practical digitisation: Fully implement the ASEAN Single Window and incremental digitisation of customs and logistics processes to streamline trade.
President Xi Jinping's April 2025 visit reinforced collaboration potential through a rail-focused memorandum of understanding, emphasising technology transfer and feasibility studies, without immediate financial commitments. This partnership approach, focusing on knowledge-sharing and careful financing models, aligns with Malaysia's cautious and realistic infrastructure policy.
As Malaysia leads Asean this year, we have a unique chance not just to showcase, but to quietly demonstrate genuine leadership through thoughtful, practical actions. Humility, honesty, and collaboration should guide our approach.
I believe deeply in Malaysia's potential. I also recognise that achieving meaningful change requires more than good intentions; it calls for collective effort and practical reforms. Like many Malaysians who love our country, I believe many are ready to contribute to this journey of renewal.
Our Asean moment is here. Let's approach it with humility, practicality, and a sincere desire to build something lasting; not just for ourselves, but for generations of Malaysians and Southeast Asians to come.
Wan Agyl Wan Hassan has served in senior positions within Malaysia's transport and regulatory sectors.
The views expressed are those of the writer and do not necessarily reflect those of FMT.
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