Easy access: Loke (third from right) together with China’s ambassador to Malaysia Ouyang Yujing (third from left), Matrade chairman Datuk Seri Reezal Merican Naina Merican (second from right), Matrade chief executive officer Datuk Mohd Mustafa Abdul Aziz (second from left), Qube Integrated Malaysia Sdn Bhd executive chairman and Malaysia-China Summit 2024 organising chair Richard Teo (left) and Malaysia-China Summit 2024 commissioner general Datuk Dr Tan Yew Chong (right) during the official launch of the Malaysia-China Summit 2024 at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur.
KUALA LUMPUR: Connectivity is “key” to boosting trade across Asean, says Anthony Loke Siew Fook, as Malaysia commits to improving rail, road, and maritime links.
Speaking to the media after launching the Malaysia-China Summit 2024, the Transport Minister noted that while 95% of trade goods are still transported via sea, rail connectivity remains underdeveloped and has the potential to complement maritime trade.
“We hope to drive Asean connectivity, especially with Thailand, Laos and eventually China, through the Pan-Asian Railway Network,” he said. “Without transport connectivity, trade cannot flow.”
Malaysia already hosts an Asean express cargo train connecting to China, but Loke pointed out that customs procedures remained at a bottleneck.
“We are in discussions with the Thai government to improve facilitation for goods in transit. This will help streamline processes and make goods transportation more efficient,” he added.
Loke acknowledged that cross-border rail connectivity remains at an early stage but stressed Malaysia’s efforts to expand its infrastructure for public transport too.
“In the years to come, we hope to encourage not only the public to use trains but also to change how goods are moved, from road to rail,” he added.
On aviation, Loke underscored Malaysia’s strategic location as a gateway to Asean.
“Within two hours, we can reach most parts of Asean by flight, which makes us an ideal location,” he said.
He said Malaysia’s aviation network includes seven international airports, with several undergoing major upgrades.
Loke said Penang International Airport’s capacity will expand to 12 million passengers annually within three years, while Kota Kinabalu International Airport will increase to 12 million passengers over the next two to three years.
Loke also highlighted the regeneration of Subang Airport, which used to be Malaysia’s primary international gateway before the opening of Kuala Lumpur International Airport (KLIA) in 1998.
Additionally, he said Subang Airport will be developed as a maintenance, repair and overhaul hub for aviation, particularly catering to business jet operations.
Turning to cargo, Loke highlighted KLIA’s growing role as a regional hub.
“KLIA is an aeropolis serving passengers and cargo,” he said, adding that Malaysia Airports Holdings Bhd
is exploring a dual-hub concept with China’s Zhengzhou airport to strengthen eCommerce connectivity between Asean and China.
Loke noted potential cargo growth in Penang, driven by the semiconductor industry and plans to develop cold chain cargo facilities at Kota Kinabalu International Airport to support seafood exports to China.
On land transport, Loke emphasised the government’s focus on rail, with the East Coast Rail Link (ECRL) being the largest project currently underway.
“The ECRL is part of the Belt and Road initiative, and it is a collaboration between Malaysia and China,” he said.
He said construction of the ECRL is 70% complete and the first phase is expected to be operational for passengers by January 2027.
Loke further elaborated on the strategic importance of the ECRL, which will connect the East Coast of Malaysia to Port Klang, the country’s largest port.
“By 2028, the ECRL will link Port Klang with the East Coast, providing a critical transport corridor that will spur industrial growth along its route,” he explained.
He said the railway will facilitate transport of goods between industrial zones and ports, opening up opportunities for investment, particularly from China.
In addition to the ECRL, Loke highlighted the near-completion of the Germas-Johor Baru double-track railway and the Johor Baru-Singapore Rapid Transit System, which is expected to be operational from 2027 onwards.
Loke also noted Malaysia’s strategic position in one of the world’s busiest maritime lanes, the Straits of Malacca.
“The Straits of Malacca is one of the busiest sea lanes in the world and we are fortunate to have major ports along this vital route,” he said.
He highlighted Malaysia’s extensive coastline, pointing out that every state facing the sea, further strengthens its position as a maritime nation.
“We are blessed in that sense because we are not landlocked.
“All 13 states in Malaysia have shorelines,” Loke said, emphasising the importance of maritime infrastructure in supporting global trade.
He said Malaysia’s established ports and connectivity allow it to remain deeply integrated into international trade networks.
