The tuanku syed sirajuddin free trade zone: The Perlis Inland Clearance Depot (PIP) has handled 100,000 twenty-foot equivalent units (TEUs) of cargo in the four-and-a-half months since it began full operations in April. Economy Minister Akmal Nasrullah Mohd Nasir said the achievement demonstrates PIP's potential as a strategic gateway for cross-border trade, thereby strengthening Malaysia's position as a regional logistics hub.
According to BERNAMA News Agency, PIP's collaboration has involved areas such as Belawan in North Sumatra, Indonesia, which could facilitate the expansion of this logistics route to cover three countries. The minister expressed confidence that PIP's cargo handling could reach 180,000 TEUs by year-end, emphasizing plans to enhance economic activities at PIP, including the development of an On-Dock Depot for container preparation services.
PIP is also exploring the construction of a warehouse or facilities to support packaging, bulk goods processing, logistics management, and distribution, aiming to create opportunities for the local economic ecosystem. Akmal Nasrullah noted that the PIP development project was a public-private partnership, with Mutiara Perlis Sdn Bhd as the developer and operator, and infrastructure funding provided by the federal government through the Northern Corridor Implementation Authority (NCIA).
The federal government allocated RM327 million to build a bonded road, flyover, and railway spur line, leveraging Perlis' location to offer competitive logistics costs, high-value investments, and economic opportunities. Sixty-three per cent of the service contractors are from Perlis and Kedah, highlighting Perlis' potential to become a logistics and transportation hub.
In a statement from NCIA, Akmal Nasrullah mentioned that PIP's connections with Penang Port and Indonesia's Belawan New Container Terminal (BNCT) had established a 388-km logistics corridor linking Indonesia, Malaysia, and Thailand. This corridor has the potential to reduce the cost and transit time of goods compared to conventional routes, while strengthening regional supply chain connectivity.
PIP can support Malaysia's efforts to attract high-value investments under the China Plus One supply chain strategy by offering competitive access to ASEAN and the Greater Mekong Subregion markets. The government plans to continue enhancing the country's logistics infrastructure and connectivity to boost Malaysia's competitiveness as a regional trade and investment hub and ensure economic development benefits a broader segment of the population.