Domestic Logistics Sector To Remain Steady This Year On E-commerce Boom, AI Tailwinds

KUALA LUMPUR, April 8 (Bernama) -- Kenanga Investment Bank Bhd (Kenanga IB) expects the domestic logistics sector’s growth to remain steady in 2026, benefiting from booming e-commerce, supported by the global tech upcycle led by artificial intelligence (AI) 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 said.

Kenanga IB said, based on Malaysia’s latest external trade data for February 2026, exports to the US recorded strong year-on-year growth of 42.3 per cent, higher than January’s 33.9 per cent, due to robust demand for electrical and electronic products.

“The US is now Malaysia’s largest export destination during the month,” it said.

Meanwhile, the investment bank also said that Malaysia will benefit from trade diversion as global trade repositions itself around higher US tariff barriers. 

Overall, it said Malaysian ports’ container growth volume is expected to remain in the low single digits, based on Kenanga’s four per cent growth estimate for 2026, as Malaysian ports are heavily invested in the intra-Asia trade route, which is less affected by surges in tariffs to the US.

Malaysian ports are partially benefiting from potential trade diversion amid US-China trade tensions, while the biggest beneficiary in the long run could be Bintulu Port Holdings due to its largest exposure to China as its largest liquefied natural gas (LNG) export market.

Nevertheless, Petrolaim Nasional Bhd’s (Petronas) Malaysia LNG complex is currently running at maximum capacity, which is expected to persist for a few years until the national oil company finalises its expansion plan. 

Kenanga IB maintained its ‘Neutral’ stance for the seaport and logistics sector.

-- BERNAMA