Malaysia's cargo ports have achieved a record year in 2024, with further growth expected in 2025, driving significant economic and real estate development. According to Irhamy Ahmad, CEO and Founder of Irhamy Valuers International, Malaysian ports are set to handle 778 million metric tonnes of goods by the end of this year, contributing RM657 billion to the economy.
Ahmad estimates that in 2025, this figure could increase by 3% to 5%, reaching 817 million metric tonnes and adding around RM690 billion to the country's GDP. He highlighted that Malaysia's Tanjung Pelepas port has made remarkable strides, ranking as the fifth most efficient port in the world according to the World Bank's Container Port Performance Index, ahead of Singapore's 17th-place ranking.
In 2024, Port of Tanjung Pelepas (PTP) became the first Malaysian port to handle over 1 million TEUs (twenty-foot equivalent units) in a single month, joining Port Klang in the global top 10 for container handling. Together, these ports are now as busy as Hong Kong and busier than Rotterdam.
Ahmad noted that just 25 years ago, Malaysia relied on Singapore for over half of its cargo exports, but now the country is handling more of its own cargo. He explained that Malaysia's port operations contribute about 40% to the national GDP, with maritime transport playing a crucial role in the nation's trade, as over 90% of exports pass through Malaysian ports.
The ports also serve as key transshipment hubs in Southeast Asia, generating revenue and creating jobs. Ahmad further pointed out that Malaysia's Free Trade Zones (FTZs) near ports offer attractive conditions for businesses to invest in logistics and manufacturing, contributing to the success of the country's export sector.
The real estate market has also been positively impacted by the growth of Malaysia's ports. With increased cargo flows and global transshipment activities, demand for warehousing, distribution centres, industrial parks, and cold storage facilities is rising, particularly in Selangor, Johor, and Penang. Land prices in areas such as Johor's Sedenak Tech Park have nearly doubled in just two years.
Residential real estate in these areas is also benefiting, as the growth in port-related activity is driving employment and demand for mid-range housing. Retail spaces are seeing increased demand as the local population grows and becomes wealthier.
Ahmad concluded that Malaysia's cargo ports are a fundamental driver of both the nation's economy and its real estate market, with continued expansion expected to further stimulate both sectors.
