Perlis Inland Port to boost trade with Thailand

Value of trade to reach US$30 billion by 2025.

Malaysia’s Perlis Inland Port (PIP), currently in the midst of construction, will increase trade between the country and Thailand as it is strategically located near the Malaysia-Thailand border.  The first phase of PIP is expected to be completed by the end of next year and operational in early 2024.

PIP is a public-private project in which the government has allocated RM318 million (US$75 million) for the development of external infrastructure while RM1.2 billion from private investments are for the development of operating areas.

PIP will serve as the state’s new gateway for trade, specifically for container routes passing through Padang Besar. The project involves the development of inland port facilities with a capacity of two million twenty-foot equivalent units (TEUs) annually, as well as the development of commercial and logistics facilities over an area of 375 acres to cater to the export markets.

Prime Minister Datuk Seri Ismail Sabri Yaakob, at the launch of PIP on March 15, said that the establishment of PIP is timely and will add value to strategic projects in the Northern Corridor Economic Region (NCER) in Perlis, namely Chuping Valley Industrial Area (CVIA), Chuping Agro Valley (CAV), NCER Agribio Economic Zone (NAEZ), and Perlis Super Fruits Valley.

Malaysia’s trade value with Thailand in 2021 was US$23.64 billion and of that amount, US$10.5 billion was contributed through border trade. The PM said that both countries have also agreed to increase the value of trade to US$30 billion by 2025.

The PIP reflects the growth momentum and economic progress of Perlis driven by the agriculture sector as well as high-value manufacturing. Perlis will attract new investment with the provision of complete logistics facilities and affordable transportation in CVIA. 

Following the launch of PIP, CVIA is expected to transform Perlis and the NCER through increased investment and job creation for locals and this will reduce the out -migration of locals.

The PM said CVIA, although newly launched, has managed to attract a committed investment of RM4.5 billion which will generate almost 12,000 jobs. Accordingly, the Northern Corridor Implementation Authority (NCIA) will continue to enhance transportation connectivity to increase PIP’s attractiveness.

NCIA chief executive Mohammad Haris Kader Sultan said at the launch of PIP that the project is expected to contribute RM2.8 billion to the state’s gross domestic product and will create 500 high-value jobs by 2030.

He added that the project is also set to expand trade by 50 percent in the border area, and that the PIP is a major component of the integrated development in Chuping Valley, which encompasses CVIA and CAV.

These projects will open a new page for the transformation of Perlis into an economy that is grounded in cross-border trade and will benefit regional cooperation entities such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and ASEAN.

Photo credit: iStock/NaLha.  View of the Prime Minister’s office from the Seri Gemilang Bridge, Putrajaya, Kuala Lumpur. 

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