Kuala lumpur: Malaysia's shipping and logistics sector is facing significant challenges, with a notable lack of investment threatening to hinder its ability to manage the growing volume of gateway cargo. Shipping Association Malaysia (SAM) chairman Ooi Lean Hin highlighted the issue during a recent panel discussion at the LogiSYM Malaysia 2026 conference, emphasizing that while gateway cargo is experiencing compounded growth, the capacity in supporting industries, such as trucking, is diminishing as operators consider exiting the business.

According to BERNAMA News Agency, Ooi, who is also the co-founder and managing director of MTT Shipping and Logistics Bhd, pointed out that the industry is struggling with congestion, inadequate turnaround times, and a shortage of drivers. He highlighted unresolved issues, including inadequate investment and low driver salaries, as major concerns. Ooi emphasized the need for building capacity across the ecosystem to support future growth, warning that expanding port capacity alone would not resolve bottlenecks in the supply chain.

Maritime industry expert Nazery Khalid echoed Ooi's sentiments, suggesting that port competitiveness now extends beyond mere capacity. He explained that ports are assessed based on more than conventional measures like throughput and shipping calls. Factors such as digitalization, adherence to environmental, social and governance (ESG) principles, energy efficiency, and service resilience have become crucial in evaluating port performance. Nazery noted that ports must effectively integrate into the supply chain ecosystem to remain competitive on a global scale.

Westports Malaysia Sdn Bhd CEO Vijaya Kumar Puspowanam added to the discussion by stressing the importance of anticipating future demand and being prepared to invest ahead of it, even if the demand is uncertain when facilities are completed. He stated that Westports is committed to expanding capacity, with plans to potentially double its current capacity of 14 million twenty-foot equivalent units (TEUs) to 28 million TEUs by the end of 2028. Vijaya also noted the necessity for capacity building beyond ports, reinforcing the importance of being proactive in addressing the sector's challenges.

Overall, the discussion underscores the urgent need for strategic investments in Malaysia's shipping and logistics ecosystem to ensure it can keep pace with ongoing cargo growth and maintain competitiveness in the face of global challenges.