An aerial view of Bintulu Port
PETALING JAYA: While global trade is likely to be constrained by stricter carbon-emission regulations, Malaysia’s logistics sector is expected to fare better being a beneficiary of the booming eCommerce and trade diversion on US-China trade tensions,
In a report, Kenanga Research said the United States is now Malaysia’s third largest export destination after Singapore and China as higher US tariffs kicked in.
The research house said Malaysia would benefit from the trade diversion as the global trades reposition themselves around the higher US tariff barriers.
“Note that during the 12-month period of the trade war from February 2018, we saw local listed port operators’ share prices trading sideways except for Bintulu Port Holdings Bhd
, which took a dive due to its largest exposure to China, its biggest Liquefied Natural Gas (LNG) export market.
“China, the biggest export destination for Malaysia in 2019-2022 (Singapore took first place from 2022), saw a double whammy following US tariff hikes and port closures due to the pandemic lockdown,’ the research house said in a report.
However, Kenanga Research expected Malaysian ports’ container growth volume to remain in low single-digit growth.
This is based on its estimates of 4% growth for 2026 as Malaysian ports are heavily invested in the intra-Asia trade route which are less affected by the surges in tariff to the United States.
They had partially benefited from the potential trade diversion amid the US-China trade tensions.
The biggest winner in the long-run could be Bintulu Port due to its largest exposure to China as its biggest LNG export market, according to the research house.
Kenanga Research has a “market perform” call on Bintulu Port with a target price of RM5.30 a share.
However, the research house had kept a “neutral” stance for the sector as a whole.
It noted that the World Trade Organisation had, in October 2025, cut its projection for 2026 global merchandise trade volume growth to 0.5% from 1.8%, citing a surge in trade tariffs and potential escalation of the Middle-East conflicts.
“In the latest announcement, high tariff levels remain central, but tariff rates and scopes are being adjusted through ongoing trade talks and reciprocal trade frameworks.
“This approach aims to boost US industry and balance trade but it has created uncertainty in markets and received mixed reactions internationally.
“We also acknowledge that global trade will have to navigate stricter regulations on carbon emissions which could further impinge on trade growth,” the research house added.
According to the research house, the diversion from the Suez Canal to the Cape of Good Hope had resulted in longer voyages for the Asia-Europe route, which contributes 30% of global container volume, reducing the frequency of calls that shipping lines could make at Westports Holdings Bhd’s ports as well all other ports in the region.
