24/06/2026

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WEDNESDAY | JUNE 24, 2026

M’sia eyes new opportunities as global shipping routes shift

o We must move beyond a reactive approach and build a resilient, future-ready maritime economy, says Loke

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

He added that the development underscores Malaysia’s non-aligned foreign policy, which emphasises diplomatic engagement with all major powers, including Russia, the United States and China. Loke said energy supply assurance is critical for the logistics and transportation sectors, which require certainty and security of supply to maintain uninterrupted operations. The government, he noted, continues to closely monitor develop ments through regular reporting at ministerial and Cabinet levels. “So far, we have been informed by Petronas that our supply is secure, and there are no issues.” Loke said Malaysia has maintained a stable fuel supply for more than three months despite global dis brunt of global oil price volatility. However, Loke acknowledged that such measures come at a steep fiscal cost, requiring billions of ringgit in government spending each month. Against this backdrop, he stressed the need for Malaysia to move beyond a reactive approach and instead build a resilient, future-ready maritime economy. “The maritime sector can no longer be viewed strictly through the lens of logistics; it must be treated as a cornerstone of national economic sovereignty.” Central to this strategy is leveraging Malaysia’s location along the Strait of Malacca, one of the world’s busiest shipping lanes, which handles roughly a quarter of global trade. As global shipping routes shift to avoid high-risk areas, Malaysia is well-positioned to capture increased traffic and reinforce its role as a key logistics and transshipment hub. The government is focusing on three pillars – resilience, connectivity and co operation – to drive the transformation. This includes accelerating port modernisation, deploying advanced automation, strengthening maritime security and expanding multimodal logistics networks. Major infrastructure projects such as the East Coast Rail Link, which will connect Port Klang on the west coast to Kuantan Port on the east coast, are expected to enhance land-sea con

KUALA LUMPUR: Malaysia is tapping into new trade flows as global shipping routes shift amid rising geopolitical tensions, with maritime chokepoints such as the Strait of Hormuz and the Red Sea reshaping the dynamics of international trade. Transport Minister Anthony Loke Siew Fook said the global shift has direct implications for Malaysia’s energy security, inflation and eco nomic stability. “Approximately half of Malaysia’s crude oil supply is linked to shipments that must pass through the Strait of Hormuz. Any disruption in the corridor could quickly rever berate through domestic fuel prices, public finances and the broader economy,” he said in his speech at the Global Maritime Economic Con ference 2026. Loke highlighted how recent conflicts and security risks have forced vessels to reroute, increasing average shipping distances, fuel consumption and freight costs. These pressures, he said, are ultimately transmitted to consumers through higher prices. Malaysia has so far cushioned the impact through targeted fuel subsidies and market interventions, shielding households from the full

Loke delivering his keynote address at the Global Maritime Economics Conference yesterday. – BERNAMAPIC

volving Iran’s re-entry into global energy markets could further stabilise prices, Loke said, noting that increased supply typically helps moderate prices. However, Loke cautioned that market conditions remain uncertain due to fluctuating negotiations between the United States and Iran. As such, Malaysia is taking a long-term approach by diversifying its energy sources and strengthening ties with reliable partners. “The most important thing is the certainty of supply. There must always be a supply, because if the oil supply is disrupted, many sectors of the economy will be affected,” he said. Separately, Iran has signalled openness to expanding economic cooperation with Malaysia following the easing of restrictions on its oil, gas and petrochemical exports. Iran’s ambassador to Malaysia, Valiollah Mohammadi Nasrabadi, said developments in East Malaysia are also gaining momentum. The transition of Bintulu Port to state control is expected to strengthen Sarawak’s role in the global LNG trade and support its ambitions in new energy. Loke said these initiatives are part of a broader effort to transform Malaysia’s ports from mere gateways for imports and exports into engines of economic activity that can attract investment and generate higher value-added services. He said that maintaining open and secure sea lanes is critical, as more than 80% of global trade is

nectivity and create new trade corridors linking Southeast Asia to China and Central Asia. At the same time, Loke said, Putrajaya is seeking to revitalise the bunkering sector, which has lagged due to fragmented oversight and regulatory complexity despite Malaysia’s strategic location. Efforts are under way to streamline regulatory processes and position the country as a competitive hub for marine fuel supply, including emerging low-carbon alternatives such as liquefied natural gas (LNG), ammonia and methanol. Beyond Peninsular Malaysia,

the development allows any country, including Malaysia, to purchase Iranian energy products without restrictions, creating new opportunities for bilateral trade. “Now Iran can sell oil, gas and petrochemical products to the world. Any country can buy from Iran, and there are no restrictions on such cooperation,” he said, adding that Malaysia could tap into Iranian oil supplies. Valiollah said the latest develop ments could serve as a gateway to broader economic cooperation be tween the two countries. He noted that the current conditions enabling Iran’s oil trade are part of a broader process following a ceasefire-related memorandum of understanding with the United States, with both sides working towards a final agreement within 60 days. He thanked the Malaysian govern ment and Parliament for their support during Iran’s recent conflict, high-lighting the strong political relation-ship between the two nations. - BY HAYATUN RAZAK carried by maritime transport. Disruptions can trigger cascading effects across supply chains, energy markets and food security, Loke noted. As such, he added, Malaysia is emphasising regional and inter national cooperation, alongside in vestments in digitalisation, maritime cybersecurity and sustainable infra structure, to ensure long-term resilience. “With our strategic location, strong infrastructure and proactive policies, Malaysia has the oppor tunity not only to weather global uncertainties but to emerge stronger as a leading maritime and logistics hub,” Loke said.

Loke: Russia supply assurance strengthens our energy security KUALA LUMPUR: Russia’s commit ment to ensuring a continuous supply of energy and crude oil to Malaysia is seen as a positive development in strengthening energy security amid ongoing global energy market uncertainties. strong bilateral relations, Russia will ensure a sustained and long-term supply of energy, oil and crude oil to Malaysia,” he told reporters at the Global Maritime Economic Con ference 2026 yesterday. ruptions triggered by geopolitical conflicts. He stressed that any disruption to fuel supply could severely impact logistics chains and economic activity, making supply security a top priority. discussions with airlines to ensure continuity. Meanwhile, developments in

Loke said jet fuel prices remain tied to global market movements and are still relatively high despite some easing. “Jet fuel prices depend on global market prices. At present, they remain high on average, although there has been a slight decline.” The minister noted that airlines adopt different strategies to manage fuel cost risks, including hedging, but volatile prices continue to pose challenges. Nevertheless, local carriers have managed to sustain operations despite higher costs, although some have reduced flight frequencies or consolidated routes. Loke emphasised that maintaining flight operations is crucial, as any disruption would affect tourism and related industries. He said the Transport Ministry is in

Transport Minister Anthony Loke Siew Fook said the assurance, secured during Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to Russia, reflects the effectiveness of Malaysia’s foreign policy approach, which maintains strong ties with multiple global powers. He said the commitment expressed by Russian President Vladimir Putin supports the government’s strategy to diversify energy sources, ensuring that logistics, transportation, and the broader economy continue to operate without disruption. “This is indeed a welcome development. The Prime Minister has publicly stated that, following his visit to Russia, he received a commitment from President Putin that, based on