The Port Klang Authority (PKA) has firmly dismissed claims made by the Federation of Malaysian Manufacturers (FMM) regarding the recently announced tariff revision, describing the assertions as inaccurate and misleading.
PKA General Manager K Subramaniam clarified that the updated tariff structure—scheduled for full implementation by 2027—was the outcome of a thorough benchmarking exercise against other major ports in the ASEAN region. He noted that even with the complete rollout, the revised rates will remain lower than many regional counterparts, reinforcing Port Klang’s competitiveness.
The tariff adjustment will range from 5% to 185%, depending on the category and service type. Subramaniam underscored that this move is intended to align Port Klang’s pricing model with prevailing regional standards while enabling continued investment in port infrastructure and technological advancement.
The response comes in the wake of a report by The Borneo Post, quoting FMM President Soh Thian Lai, who claimed that the 30% tariff increase scheduled for implementation from 1 July could result in container handling and storage charges rising by as much as 243%. Soh argued that these changes could push charges for a standard 20-foot container to between USD 120 and USD 130—on par with Singapore and Hong Kong but significantly above rates in Vietnam, Indonesia, and Thailand. He further estimated the revised charges could cost the manufacturing sector up to RM1.125 billion annually, based on Port Klang’s annual throughput of approximately 12.5 million twenty-foot equivalent units (TEUs).
Subramaniam refuted these figures, calling them overstated and based on flawed assumptions. He explained that the FMM’s estimate failed to consider the phased nature of the increase, the existence of free storage periods, and the differentiation in pricing for transshipment cargo, which comprises a substantial share of Port Klang’s traffic.
Addressing broader concerns about Malaysia’s export competitiveness, Subramaniam stated that port tariffs represent only one component of a much larger ecosystem. He pointed to Malaysia’s strong manufacturing base, extensive trade agreements, and growing export diversity as key pillars that underpin the country’s position in global trade.
He emphasised that the tariff adjustment is not a step back but a strategic move to reinforce Port Klang’s position as a key logistics hub in Southeast Asia. By investing in capacity expansion, technological upgrades, and sustainable operations, the revised structure is designed to benefit manufacturers, exporters, and importers alike—ensuring long-term growth and regional leadership for Malaysia’s trade sector.
-FMT
