PUTRAJAYA: The Ministry of Transport (MoT) is considering a structured mechanism to implement a phased 30% increase in port tariffs over the next three years, aimed at balancing market needs with the long-term development of Malaysia’s port infrastructure.
Transport Minister Anthony Loke Siew Fook said the review comes amid concerns that the current system lacks transparency and consistency. Speaking after the MoT’s monthly assembly and the Raikan Kasih Madani 2025 event on Tuesday, Loke outlined the need for a transparent formulaic approach, possibly linked to annual inflation rates.
“If the inflation rate is 2%, for example, then the increase could be gradual, not sudden as it has been previously,” he said.
The new proposal suggests a three-phase tariff hike: 15% in the first phase, followed by 10% and 5% in the subsequent phases. Loke emphasised that the changes will only be implemented after extensive consultation and will be carefully reviewed by the Port Klang Authority and Johor Port Authority, who have yet to submit final documents for approval.
Responding to the Federation of Malaysian Manufacturers’ (FMM) request to delay the proposed hike due to concerns over rising business costs, Loke clarified that tariff increases are not imposed arbitrarily but are subject to strict oversight and stakeholder engagement.
“The last review was done a decade ago, with a 15% increase in 2015 and another 15% in 2018,” he noted. “Revenue from port operations must be sustainable to encourage investment and capacity expansion.”
He added that without a reassessment of port charges, declining operator revenue could deter critical infrastructure investments, undermining the competitiveness of Malaysia’s ports.
The phased increase aims to avoid sudden shocks to the logistics and manufacturing sectors, while ensuring long-term viability and development of port infrastructure.–BERNAMA
