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Thursday, May 29, 2025
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Laos, Malaysia Open New Rail-Sea Trade Corridor

This Week

Laos and Malaysia have launched a new trade corridor to improve regional logistics and strengthen economic ties, providing a direct route from Laos to global markets.

On 25 May, both countries signed a Memorandum of Cooperation (MoC) between Malaysia’s Penang Port Sdn Bhd and Laos’ Thanaleng Dry Port (TDP). The agreement was signed by Datuk Azman Shah Mohd Yusof, CEO of MMC Ports, and Chanthone Sitthixay, CEO of Thanaleng Dry Port, with the prime ministers of both nations in attendance.

This new route connects the Lao-China Railway to Malaysia’s Penang Port, enabling faster and more cost-effective cargo transport. It is expected to improve regional integration and create new trade opportunities.

Datuk Azman said the corridor supports Malaysia’s goal of becoming a regional logistics hub by aligning infrastructure, staff, and operations for smooth cargo flow. Meanwhile, Sakhone Philangam, Managing Director of Thanaleng Dry Port, said the connection is vital for Laos, offering sea access and links to major markets in India and Africa.

This initiative builds on a previous link between Malaysia’s Perlis Inland Port and Vientiane Capital, further expanding trade access for Laos and boosting efficiency.

In 2024, trade between the two countries reached USD 20.9 million, with Malaysia exporting USD 14.2 million and importing USD 6.7 million. Malaysia is also Laos’ fifth-largest investor, with USD 942 million in investments across 46 projects.

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