KUALA LUMPUR — Rising operational costs are forcing transport operators to adjust service rates, as Malaysia’s logistics sector grapples with mounting financial pressure driven largely by fuel price hikes.
Association of Malaysian Hauliers (AMH) secretary-general Mohamad Azuan Masud said pricing decisions remain guided by regulatory frameworks, particularly the Competition Act 2010, but acknowledged that cost adjustments are already taking place across the industry.
“While pricing must comply with regulatory guidelines, we understand that some operators have adjusted their service rates to reflect increased costs,” he said.
“Based on feedback, many clients are aware of the current cost environment and have generally accepted these adjustments.”
Azuan noted that most operators are unable to absorb the sustained rise in expenses, making cost recovery through customers unavoidable to ensure business continuity.
“Operators are generally unable to absorb these increased costs and will need to undertake cost recovery through their customers. This is a common practice to sustain operations within the logistics sector,” he added.
He highlighted that certain segments are more exposed to rising transportation costs, particularly those involving energy-intensive operations.
“Refrigerated transport requires additional energy consumption, while specialised equipment such as side loader trailers also incurs higher operational costs due to increased power requirements,” he said.
The rate adjustments come amid broader strain on the sector following a sharp increase in diesel prices. As of April 2, diesel in Peninsular Malaysia rose to RM6.02 per litre, the highest level on record.
In contrast, Sabah, Sarawak and Labuan continue to maintain a subsidised diesel price of RM2.15 per litre. — April 5, 2026