Malaysia’s Port and Logistics Sector Faces Uncertain Outlook in 2026 Amid Global Pressures
PETALING JAYA — Malaysia’s port and logistics sector is expected to face a challenging and uncertain outlook in 2026 as global trade conditions remain volatile amid geopolitical tensions and shifting trade policies.
Kenanga Research said that while certain factors such as e-commerce growth and global trade diversion could provide some support for the industry, the overall prospects for the sector remain clouded by external economic and political developments.
According to the research firm, the performance of several industry players in the fourth quarter of 2025 delivered mixed results, signalling that companies may encounter greater challenges in the year ahead.
In its research note, Kenanga highlighted projections from the World Trade Organization (WTO), which forecast that global merchandise trade growth will slow significantly to around 0.5 per cent from the earlier estimate of 1.8 per cent.
The slowdown is largely attributed to escalating geopolitical tensions, including conflicts in West Asia that have disrupted global supply chains and trade flows.
In addition, the temporary introduction of a universal baseline tariff of 10 per cent by the United States administration under Donald Trump in February 2026 is expected to create further short-term headwinds for global trade.
Kenanga noted that the final tariff rates and their full scope are still being determined as negotiations among trading partners continue.
At the same time, the maritime and logistics industry is also preparing to adapt to structural changes that came into effect on January 1, 2026.
These changes include the implementation of the Carbon Border Adjustment Mechanism (CBAM) introduced by the International Maritime Organization in collaboration with the European Union.
Under the new framework, shipping vessels are required to reduce their carbon intensity by approximately two per cent annually.
The regulation is expected to increase operating costs for shipping companies as they transition toward lower-carbon fuel alternatives and environmentally compliant technologies.
In its analysis of corporate performances during the fourth quarter of 2025, Kenanga reported that Westports Holdings Bhd. exceeded market expectations, supported by higher port tariffs that boosted its earnings.
Meanwhile, Bintulu Port Holdings Bhd. delivered results that were largely in line with expectations after the PETRONAS MLNG complex resumed full operations.
However, Swift Haulage Bhd. recorded weaker-than-expected results for the quarter due to intensifying competition within the logistics industry, which affected both sales and profit margins.
Pos Malaysia Bhd. also fell short of expectations, primarily due to disruptions in logistics services and operational issues involving maritime shipping activities.
These challenges suggest that the company’s recovery process could take longer than previously anticipated.
Given the current uncertainties affecting global trade and rising operational costs within the shipping and logistics industry, Kenanga Research said it does not currently identify any preferred investment picks within the sector.
-wilayah.com.my
