PETALING JAYA: While the conflict in the Strait of Hormuz has disrupted global energy markets, Malaysia’s container ports, led by Westports Holdings Bhd
, appear largely insulated.
According to RHB Research, Malaysia’s container terminal and transshipment hub is expected to face minimal impact on container volumes and earnings, thanks to limited Middle East exposure and stable intra-Asia trade.
“Based on our sensitivity test, every 10% increase in fuel costs could reduce Westports’ financial year 2026 forecast earnings by 1%.”
However, RHB Research noted that this could be largely mitigated if cargo flows are rerouted or consolidated through alternative Asian hubs following the closure of the Strait of Hormuz, potentially lifting transshipment volumes.
“Ultimately, this will depend on which countries exporters are targeting and the shipping routes they choose.
“It is too early to be certain, but Port Klang could, on the other hand, potentially see ‘dumping activities’ of empty containers,” an analyst told StarBiz.
Additionally, the analyst expects effects to be less significant than the Russia-related shipping disruptions in 2022, which affected transshipment through 2024 before normalising in 2025.
“In my view, transshipment disruptions and export delays could affect Malaysia in the second and third quarters (2Q and 3Q26), although the impact will depend on how the conflict in Iran escalates.
“It hinges on the April meeting outcomes between US President Donald Trump and Chinese President Xi Jinping,” he added.
Notably, RHB Research indicated the transportation sector’s earnings for 4Q25 have met expectations.
Westports’ core net profit stood at RM1bil, noting a 12.2% increase year-on-year (y-o-y), slightly beating analyst forecasts at 103%.
“The earnings growth was driven by a record container volume of 11.3 million 20-foot equivalent units (a 3.3% rise y-o-y) plus a 15% tariff uplift adjustment.”
Meanwhile, the container terminal’s Westports 2 expansion remains the long-term catalyst to overcome current utilisation ceilings, RHB Research said.
