Recently, there have been rumors that the Malaysian government plans to gradually increase port charges by 30%. Malaysian Transport Minister Loke Siew Fook responded on April 22nd, stating that the government has not yet finalized the plan to adjust port charges. The proposed 30% increase would be implemented gradually in three stages over three years to mitigate the impact on importers, exporters, and the logistics industry.
Loke mentioned that the proposed phased adjustment plan includes a 15% increase in the first year, followed by 10% in the second year, and 5% in the third year, rather than a one-time 30% hike. However, this plan has not been finalized, and the related documents have not been submitted for approval.
He emphasized that the proposed adjustment was not sudden but was discussed extensively through the Port Consultative Committee, involving various stakeholders including organizations like the Federation of Malaysian Manufacturers.
Loke pointed out that Malaysia has not reviewed port charges for many years. In 2015, a phased 30% adjustment plan was approved, but the second phase was not implemented, indicating that the last adjustment was a decade ago.
He stated that the Ministry of Transport plans to introduce a more structured and transparent fee review mechanism, which will be reviewed annually in the future, rather than waiting for port operators to apply for a review.
Loke believes that this gradual adjustment will better balance national economic development and port operational needs while keeping ports competitive. He also explained that port charges are industry service fees levied on importers and exporters and do not directly pass on to end consumers.
Most ports in Malaysia are operated by private companies under concession agreements, responsible for investment and operations. Therefore, in formulating the fee structure, the government must balance between ensuring the profitability of port operators and supporting the expansion of the country's logistics capabilities.
Recently, the Federation of Malaysian Manufacturers has urged the government to postpone the implementation of the proposed 30% increase in port charges, especially concerning container handling fees and storage charges.