09/04/2026

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THURSDAY | APR 9, 2026

M’sian e-commerce, logistics ecosystem feels the strain

pre-war forecast. “Even the most optimistic of those represents just 1% of the capital currently at risk in the Gulf.” “I want to emphasise that these are reasonable and even conservative estimates. We conservatively forecast Malaysia capturing only a sliver of the more than RM1.2 trillion (US$300 billion) in planned spending in the Gulf, which the war has jeopardised.” “The current geopolitical disruption has only expanded Malaysia’s opportunities. You might ask yourself why it’s important that Malaysia become a global data centre hub. “In answer, KPMG, a consulting firm, has estimated that by 2030 data centres in Malaysia could support RM138 billion (US$34.2 billion) in economic output, RM47.6 billion (US$11.8 billion) in gross value added, and around 30,900 jobs. That is equivalent to roughly 4.1% of national economic output and 3.5% of GVA,” said Ansari. Domestic logistics sector growth to remain steady this year: Kenanga IB KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) expects the domestic logistics sector’s growth to remain steady in 2026, benefiting from booming e commerce, supported by the global tech upcycle led by artificial intelligence (AI) data centre demand, a resilient US economy, and potential trade diversion amid US-China trade tensions. It said the World Trade Organisation cited an emerging trend of connecting economies or countries that benefited from the trade diversion due to US-China tensions. “Malaysia, Singapore, India and Vietnam’s growth are surging due to their emerging role as ‘connecting’ economies, trading across geopolitical blocs, thereby potentially mitigating the risk of trade fragmentation,” it said. Kenanga IB said, based on Malaysia’s latest external trade data for February 2026, exports to the US recorded strong year-on year growth of 42.3%, higher than January’s 33.9%, due to robust demand for electrical and electronic products. “The US is now Malaysia’s largest export destination during the month,” it said. Meanwhile, the investment bank also said that Malaysia will benefit from trade diversion as global trade repositions itself around higher US tariff barriers. Overall, it said Malaysian ports’ container growth volume is expected to remain in the low single digits, based on Kenanga’s 4% growth estimate for 2026, as Malaysian ports are heavily invested in the intra-Asia trade route, which is less affected by surges in tariffs to the US. Malaysian ports are partially benefiting from potential trade diversion amid US China trade tensions, while the biggest beneficiary in the long run could be Bintulu Port Holdings due to its largest exposure to China as its largest liquefied natural gas (LNG) export market. Nevertheless, Petrolaim Nasional Bhd’s Malaysia LNG complex is running at maximum capacity, which is expected to persist for a few years until the national oil company finalises its expansion plan. Kenanga IB maintained its ‘Neutral’ stance for the seaport and logistics sector. – Bernama

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

o Impact fromWest Asia conflict still evolving but already filtering through in form of higher freight, fuel and input costs

KUALA LUMPUR: Malaysia’s e-commerce and logistics ecosystem is beginning to feel the strain from the ongoing conflict in West Asia, as rising energy prices and shifting trade routes push up costs and add pressure on delivery timelines. Industry players say the impact, while still evolving, is already filtering through supply chains in the form of higher freight, fuel and input costs, alongside increasing uncertainty in global logistics networks. Malaysian International Chamber of Commerce and Industry (MICCI) president Christina Tee said the effects are largely indirect but significant, reflecting Malaysia’s position as an open, trade-dependent eco nomy. “The ongoing conflict in West Asia is beginning to affect Malaysian businesses mainly through higher energy prices and global supply chain uncertainty,” she said, noting that developments around key shipping routes such as the Strait of Hormuz are driving up fuel, freight and insurance costs. Within the e-commerce and logistics space, Tee said the most visible impact so far has been rising operational costs and some delivery delays, particularly for cross-border trade, as shipments are rerouted and logistics conditions become more fluid. Cost pressures are also intensifying across the value chain. Tee pointed to sharp increases in certain input materials, including commodity resins such as polypropylene, which have surged by about 75% from US$950 per tonne to US$1,720 (RM6,880) per tonne. At the same time, disruptions to supplies from the Gulf region are affecting packaging related inputs such as adhesive tapes, inks and solvents, raising costs for fast-moving consumer goods and food products. “These sharp increases are not only affecting margins but are also significantly impacting business cash flow,” Tee said. While some companies are absorbing part

and more frequent, real-time adjustments,” he said, stressing that the company remains fully operational and continues to deliver reliably. However, rising fuel and energy costs remain a concern for the industry. Neo noted that, where contractual agreements allow, such increases may be passed on to customers through established surcharge mechanisms, a standard practice in the logistics sector. To maintain service reliability, DHL is closely monitoring airspace availability, airport operations and cross-border con ditions, while keeping alternative routes and gateways on standby. This network-wide visibility enables the company to shift volumes, adjust routes and combine transport modes as needed, ensuring continuity amid rapidly changing conditions. For businesses more broadly, Tee said the current environment is prompting a stronger focus on cost management and supply chain resilience. Companies are refining sourcing stra tegies, building inventory buffers and adjusting logistics arrangements to cope with volatility. Looking ahead, MICCI said coordinated policy support may be needed if pressures persist. Tee suggested measures such as targeted tax support, temporary loan re payment flexibility and assistance in facilitating alternative sourcing. “If these pressures persist, there may also be a need to consider reintroducing targeted support measures similar to those imple mented during the Covid-19 period,” she said. As geopolitical risks continue to evolve, industry players expect the coming months to test the resilience of Malaysia’s e-commerce and logistics ecosystem, with cost manage ment and adaptability emerging as key priorities. already clear. One analyst said that Malaysia is where you go when things are going badly elsewhere. Another explained that Malaysia is in a ‘sweet spot’. Before the war in the Gulf, analysts were already forecasting that Malaysia’s data centre market would grow by 22.4% annually to RM54.8 billion (US$13.57 billion) by 2030.” That is a rapid rate of growth and implies the market would nearly triple in size in just six years, he added. “To quantify the potential impact of global events on this forecast, we modelled three scenarios.” Ansari said: “We asked ourselves what happens to that forecast if Malaysia receives even a fraction of the investment that is now being reconsidered in the Gulf. Our scenarios show the market reaching between RM57.52 billion and RM68.46 billion by 2030, adding between RM2.74 billion and RM13.69 billion above the

Tee: Effects are indirect but significant.

Neo: Trade is being rerouted.

of the higher costs in the short term, Tee noted that this is unlikely to be sustainable, with cost adjustments already being shared along the supply chain and gradually passed on to consumers. On the ground, logistics players are navi gating a more complex operating environment. DHL Express Malaysia and Brunei managing director Julian Neo said the conflict is disrupting both passenger and cargo air traffic, with trade flows increasingly being diverted through longer and more complex routes. “Trade isn’t stopping; it is being rerouted,” he said, adding that the company is leveraging contingency plans, alternative routing and multimodal transport solutions to manage disruptions. Despite the challenges, Neo said, DHL has not observed structural disruptions to shipments involving Malaysia at this stage, although operations have become more dynamic and require closer coordination and real-time adjustments. “International routes have become increasingly dynamic, which means our operations require much closer coordination

IQI: Global instability could drive billions into Malaysian data centre market PETALING JAYA: On March 2, drone strikes damaged AWS data centres in the United Arab Emirates and Bahrain, disrupting cloud services across the region. Juwai IQI co-founder and group CEO Kashif RM2.74 billion in new investment beyond the prewar baseline. Ansari said, “Malaysia’s offering of cost effectiveness, established infrastructure, and geographic neutrality is why it was already one of

the Asia-Pacific’s fastest-growing data centre markets before the events in the Gulf.” He noted that Malaysia offers supportive policy and high quality infrastructure, such as

Ansari said, “When investors realise that billions of dollars of infrastructure could be at risk of being destroyed, they look to shift some of their investment to other locations. Most Gulf

fibre networks, a reliable national energy grid, rail, ports and highways. The country has some of the lowest data centre construction costs in Southeast Asia. “There’s one final factor. The country’s infrastructure includes links to more than 20 international submarine cables. These enable data to travel rapidly and with low latency to users across Asia,” said Ansari. “The general outlines of the likely impact are

investment will proceed because it is driven by sovereign capital and long-term national strategies. But data centre operators are now looking to Malaysia and other locations to diversify and reduce risk.” For global operators, he added, Malaysia is a route to diversify risk, lower costs, and stay close to Asian demand. Even if only a tiny, 0.23% share of data centre development is shifted from the Gulf to Malaysia, that would mean at least