Johor’s logistics sector set for growth, driven by Johor Port and PTP productivity
20 Jan 2025
The logistics sector in Johor remains poised for growth, bolstered by the productivity of Johor Port and the Port of Tanjung Pelepas (PTP), both of which continue to maintain low vessel dwell times.
Industry experts believe planned developments, such as the Johor-Singapore Special Economic Zone (JS-SEZ), are expected to further solidify Johor’s position as a key logistics hub in Southeast Asia.
MMC group managing director Tan Sri Che Khalib Mohamad Noh Johor continues to be a major logistics hub due to its strategic location, comprehensive land, sea, and air transport infrastructure, deep connectivity and green lanes to Singapore, ample land availability, as well as a strong labour supply.
Che Khalib said the proposed initiatives under the JS-SEZ will foster greater cross-border movement of people, integration, and connectivity between Johor and Singapore, which will in turn intensify cross-border trade and logistics.
“The JS-SEZ will also promote renewable energy, green industrial parks, and one-stop investment centres, which would attract high-value investors that prioritise ESG and reduced carbon emissions,” he told Business Times.
Meanwhile, transport consultant Wan Agyl Wan Hassan said with larger warehousing capacities compared to Singapore and access to well-established ports such as PTP and Johor Port.
“Johor’s proximity to Singapore gives it a golden opportunity to shine as a logistics hub.
“Singapore’s reputation as a global logistics leader is unmatched, but rising costs and limited space there mean Johor can step up as the affordable and scalable alternative,” he said.
Meanwhile, Wan Agyl said the global logistics industry’s current turbulence—driven by the Red Sea crisis and the rising trend of regionalisation—has further highlighted Johor’s potential.
He noted that companies are now seeking alternative routes and warehousing solutions closer to their production and consumption hubs.
“Yes, the Red Sea crisis is a challenge, but it’s also a wake-up call. Global logistics is shifting towards regionalisation, sustainability, and resilience. Johor must seize this moment to position itself not just as a backup to Singapore but as a vital player in the global trade network.
“By focusing on these strategies, Johor might have the chance to thrive in the face of global disruptions,” he said.
Kenanga Investment Bank Bhd has maintained its “neutral” stance on the seaport and logistics sector as the shipping diversion from the Red Sea continues to weigh down on global trade.
However, the firm expects the domestic logistics sector to play a key role in connecting economies that benefitted from the trade diversion due to the United States (US)-China trade tensions.
“Nevertheless, we continue to see a bright spot in the domestic logistics sector, benefiting from the booming e-commerce, the global tech upcycle driven by demand for artificial intelligence, and a resilient US economy,” it added.
Source: NST
