The Implications of One Belt One Road (OBOR) Strategy on Malaysian Seaport Capacity

Abstract

Analysis on the implication of One Belt One Road (OBOR) on Malaysian seaport capacity is the main agenda of this paper. OBOR initiative is a win-win cooperation between China and 65 countries around the globe including Malaysia. This initiative connecting Asia, Europe, Africa and the Middle East which comprising two routes inlcuding ???Silk Road Economic Belt??" and ???21st Century Maritime Silk Road??". Some projects that will be develop in Malaysia under OBOR are Malaysia-China Kuantan Industrial park (MCKIP), Melaka Gateway (seaport), East Coast Rail Link (ECRL), and Iskandar Malaysia (industrial park). Currently, Malaysian seaports are facing an imbalance in capacity due to the unpredictable trend in maritime logistics, severe competition with inter/intra regions seaports and preserving a steady momentum in trend of seaport competitiveness Hence, this research has been conducted to analyse the impact of OBOR initiative on Malaysian seaport capacity and to evaluate the preparation of Malaysia to comply with it. This paper employs quantitative approach via regression analysis to validate the impact of OBOR on seaport capacity especially in peninsular Malaysia. Questionnaires have been distributed to 30 respondents including experts from seaports and their respective clients. Regression analysis has been conducted to evaluate the impact of OBOR on Malaysian seaport capacity proposing substantial preparation for Malaysia to cope with this global plan. The outcome of this paper indicates that the establishment of OBOR will affecting Malaysian containerised trade, seaport infrastructure and hinterland area. Hence, government policy, port expansion, investment, strategic planning, and investment on new equipment need to be revisited to ensure a progression of symbiotic relationship between Malaysia and this global investment plan