KUALA LUMPUR, May 16 (Xinhua) -- Malaysia's overland transport and logistics infrastructure is poised to boost gross domestic product (GDP) and provide a strategic buffer against geopolitical tensions through the availability of alternative routes to ensure trade continuity in the face of disruptions, according to an industry expert.
The East Coast Rail Link (ECRL), a mega rail project in Malaysia being built by the China Communications Construction Company, and the Perlis Inland Port (PIP), a 500-acre state-of-the-art integrated logistics hub in the Chuping Valley, Malaysia, near the Thai border, are among the key elements of this supply chain, Irhamy Ahmad, the CEO and founder of Irhamy Valuers International, a part of Juwai IQI, said in a recent note.
"These projects connect to Port Klang and the Port of Tanjung Pelepas to form what you might call a land bridge that crisscrosses Peninsular Malaysia. By shifting more freight to rail, it reduces the number of heavy lorries on the roads, stimulates property market growth in key locations, and gives us other entry points for trade than the Strait of Malacca," Irhamy said.
He noted that the new inland port and rail link would drive a boom in Malaysia's freight and logistics market, with analysts projecting the market to reach 156.83 billion ringgit (about 40.11 billion U.S. dollars) by 2031 -- an increase of more than one-third from 2025 levels.
"The ECRL alone is expected to contribute a 3.8 percent increase to Malaysia's GDP by 2047, equivalent to some 17.3 billion ringgit per year," he added.
Irhamy further explained that the ECRL will remove 30 percent of freight from the roads, reduce lorry accidents, which currently cause some 200 deaths each year, and help Malaysia meet its environmental targets by cutting greenhouse gas emissions by 1.2 million tonnes annually.
The rail link is also expected to drive property demand, particularly along the east coast, while boosting tourism with new hotels, resorts and short-term rental properties to meet rising demand.
"The rail link is likely to transform the tourism market on the East Coast and drive up the value of beach and related property. The train will transform beach destinations by bringing them into easy reach for weekend trips from the Klang Valley," he said, noting that the ECRL passes through or near the beautiful beach destinations.
Meanwhile, the PIP is expected to drive development and property demand, expand trade with Thailand by 50 percent, and create 12,000 jobs.
Irhamy also explained that such routes will allow the movement of goods and the strengthening of supply chains, especially following the situation in the Middle East and disruptions of the Strait of Hormuz. The Strait of Malacca is far more critical to global trade, handling a quarter of global trade, 45 percent of seaborne oil, over 25 percent of internationally traded cars, and 23 percent of dry bulk cargo.
"Should a hostile nation threaten the strait, global trade and our own economy would be at serious risk. Our new port and rail infrastructure gives us greater flexibility," Irhamy said.
"While the ECRL could not replace the full volume of trade passing through the Strait of Malacca annually, it could serve as a strategic bypass for high-priority goods, such as electronics, medical supplies and critical components. This land bridge ensures that, even under a total maritime blockade of the strait, the most vital trade flows could continue moving under Malaysian protection," he said. Enditem
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