Malaysia’s Perlis port promises faster halal deliveries to China, but success hinges on Thailand

Malaysia’s Perlis mega-port aims to revolutionise halal cargo delivery to China, contingent on Thai rail agreements and regional stability

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A container truck leaves the Padang Besar Container Terminal in Perlis, Malaysia. The northern state bordering Thailand is a key transit point for exports from the kingdom’s southern provinces. Photo: Joseph Sipalan

Published: 4:40pm, 25 Mar 2025Updated: 5:11pm, 25 Mar 2025

Malaysia is building an inland mega-port in its northernmost-state of Perlis to boost goods train capacity to the western Chinese cities of Kunming and Chongqing – potentially reducing delivery times by up to 50 per cent – but the project’s success hinges on delicate negotiations with neighbouring Thailand.

Developers of the 492 million ringgit (US$111.8 million) Perlis Inland Port expect the project’s first phase to be completed by July. This expansion will double the state’s current capacity to 300,000 shipping containers, improving the handling of rising shipments from Thailand’s southern provinces.

Malaysia sees expanded capacity as an opportunity to increase cargo delivery – especially of halal products – to China, with trains expected to reach Chongqing from Perlis in eight days.

Government estimates say that would significantly cut sea transit times from Port Klang, further south, which typically range between 14 and 21 days.

But Malaysia’s plans are contingent on Thailand agreeing to ease customs clearance and pursue a policy to develop its restive south – the last rail segment blocking an ambitious Pan-Asian high-speed railway.