AI, eCommerce tailwinds to buoy logistics sector


Kenanga Research said Malaysia, Singapore, India and Vietnam’s growth are surging due to their emerging role as connecting economies trading across geopolitical blocs.

KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) expects the domestic logistics sector’s growth to remain steady in 2026, benefiting from booming eCommerce, supported by the global tech upcycle led by artificial intelligence data centre demand, a resilient US economy, and potential trade diversion amid US-China trade tensions.

It said the World Trade Organisation cited an emerging trend of connecting economies or countries that benefited from the trade diversion due to US-China trade tensions.

“Malaysia, Singapore, India and Vietnam’s growth are surging due to their emerging role as connecting economies trading across geopolitical blocs, thereby potentially mitigating the risk of trade fragmentation,” it added, noting that global trade is repositioning around higher US tariff barriers.

Kenanga IB has maintained its “neutral” stance for the seaport and logistics sector. — Bernama

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