KUALA LUMPUR, April 26 — Malaysia is well-positioned to absorb any increase in redirected trade flows through the Strait of Melaka if shippers decide on alternative routes to avoid the conflict-stricken Strait of Hormuz.
This is due to the country’s strong geostrategic advantage as a regional supply chain hub, said Universiti Kuala Lumpur professor Dr Nor Aida Abdul Rahman.
“But it becomes a real commercial advantage only when it is matched by operational efficiency,” she told Bernama when asked about the impact of the West Asia conflict on Malaysia’s supply chain industry.
Nor Aida, who is the university’s professor of supply chain and strategy/aviation management, said the Ministry of Transport’s logistics and trade facilitation masterplan explicitly positions Malaysia as the “preferred logistics gateway to Asia.”
This means its geographic location needs to be translated into productivity, reliability, and trade facilitation, she said.
In this light, Nor Aida reiterated that the country should leverage its strategic position along the straits to fully realise its potential as a regional supply chain hub.
“To strengthen this position, Malaysia can continue improving port turnaround times, smoother customs processes, and stronger integration between industrial zones and inland logistics networks.
“The record container volumes handled by Port Klang and Port of Tanjung Pelepas show that Malaysia already has a credible capacity base and market relevance,” she said.
It includes incentives such as the Malaysian Investment Development Authority’s smart logistics complex scheme, which can support further investment in smarter and more efficient logistics infrastructure.
Beyond being a transit location, she reckoned that Malaysia has strong potential to develop further as a regional distribution hub, fulfilment centre, and value-added logistics base.
With these credentials, she said the country is in a good position, given the current port and logistics infrastructure readiness to absorb a diversion of trade flows.
Besides this, Malaysia has a strong port infrastructure base to absorb part of any redirected trade flows.
However, Nor Aida said the advantage needs to be supported by continuous improvement across the wider logistics ecosystem.
Areas to improve include digital integration, stronger port-hinterland coordination, and shorter processing times, so that physical capacity can be translated into truly effective operational capacity.
Port Klang and the Port of Tanjung Pelepas continue to post strong record container volumes, with official Port Klang Authority data showing substantial terminal capacity and supporting facilities for container operation, she explained.
“This suggests that Malaysia is not starting from a weak position in terms of major-port capability; the ability to absorb additional trade is not determined by ports alone.
“It also depends on inland transport efficiency, warehouse availability, custom flows, operator coordination and digital connectivity across agencies and industry players,” she said.
In a sudden surge scenario, pressure may shift from the port itself to hinterland movement or cargo clearance processes if coordination is not sufficiently responsive, Nor Aida added.
Meanwhile, Malaysian geostrategic analyst professor Dr Azmi Hassan said that the recent turmoil in the Strait of Hormuz has brought renewed attention to the role of key chokepoints and highlights the stability and reliability of Southeast Asia’s waterways.
He said Malaysia and other littoral states along the Strait of Melaka, including Indonesia and Singapore, have consistently upheld the principle of keeping key maritime routes open and free from geopolitical leverage.
Azmi Hassan said the good news about the free passage is that ASEAN nations have never intended to use strategic waterways such as the Strait of Melaka and the South China Sea as geopolitical tools, unlike the tensions seen in the Strait of Hormuz.
Despite being a sensitive region with competing interests among major powers, the South China Sea has remained open to navigation, reflecting the region’s commitment to ensuring the smooth flow of global trade, he added.
“Similarly, the Strait of Melaka, although narrow and heavily utilised, has never been used by Malaysia or Indonesia as a geopolitical instrument,” he said. — Bernama
