Malaysia’s manufacturers call for a government-industry task force to tackle rising shipping costs and delays from Middle East tensions affecting maritime trade.
KUALA LUMPUR: The Federation of Malaysian Manufacturers is urging the government to form an Export Crisis Response Task Force. This ad hoc government-industry mechanism is needed to address operational challenges from Middle East tensions disrupting maritime trade.
FMM president Jacob Lee Chor Kok said recent international events highlight the need for a coordinated response platform. Such a platform would enable timely engagement between agencies and industry to assess developments and share information.
Lee warned that major shipping lines have introduced emergency freight increases for Gulf port cargo. War-risk insurance premiums have also risen sharply.
He cited Port Klang as an example, noting it is experiencing congestion that could worsen. Over 90% of Malaysia’s trade is transported by sea, exposing the manufacturing sector directly to shipping route disruptions.
“Stable and reliable maritime logistics remain critical to sustain export performance and industrial production,” Lee said. Recent developments already show rising freight costs and operational disruptions.
Based on 2024’s Red Sea crisis experience, freight rates on affected routes rose up to threefold within weeks. Vessel diversions also extended transit times by up to two weeks.
Manufacturers exporting to Gulf markets now face higher freight costs and tighter vessel capacity. They also face uncertainty over delivery schedules.
Higher global oil prices may increase industrial energy costs and logistics expenses across the sector. While not Malaysia’s largest export destination, Gulf Cooperation Council countries are an important secondary market.
The region is also a key transhipment hub for cargo moving to Africa, Central Asia and Europe. Disruptions to Gulf ports therefore affect both direct exports and shipments for other markets.
Lee said the proposed task force should provide real-time market intelligence on freight rates and shipping routes. It should also facilitate information sharing and coordinate rapid responses to operational challenges.
He suggested the task force be chaired by the Ministry of Investment, Trade and Industry. It should bring together relevant MITI agencies with the Ministry of Transport, port authorities, the Ministry of Finance, Customs and Bank Negara Malaysia.
Industry representation would come through FMM. “The task force would also enable emerging disruptions to be identified early,” Lee added.
Where necessary, it could introduce support measures to assist exporters facing higher costs and delays.
The Sun Malaysia
