Formulating a Way Forward Strategy for Malaysia Cross Border Inland Port Using SWOT and TOWS Analysis

Abstract

Malaysia holds the position of being Thailand’s primary trading partner within the ASEAN region and ranks as the fourth largest trading partner overall. The bilateral trade between these two nations in 2020 amounted to nearly RM80 billion. The seaport in Malaysia has emerged as a preferred hub for exporters from Thailand. Nevertheless, the current cross-border inland port, known as the Padang Besar Inland Port (PBCT), exhibits constraints in its operational capacity. The rapid expansion of the economy in southern Thailand, along with the increasing need for cross-border freight transportation to the nearby Penang seaport in Malaysia, makes the future building of more inland ports across the border an inevitable development. Despite its significance, there is a paucity of detailed studies on inland ports along the Malaysia-Southern Thailand border. Further investigation is necessary to address the recent challenges pertaining to external threats and internal limits faced by cross-border inland ports. This study seeks to explore the present issues faced by the Malaysian cross border inland port and to analyze potential solutions for future development via the application of SWOT and TOWS analysis. The methodology employed in this study encompasses interviews conducted with important stakeholders, on-site observations, and desktop research. A SWOT analysis is conducted on the current cross-border inland port, followed by a proposition of employing a TOWS analysis for future cross-border inland ports. The highlighted findings pertain to major outcomes derived from interviews, on-site observation, and secondary data analysis. The establishment of successful inland ports requires the availability of strong supporting infrastructures and information systems, according to key findings. The development of adequate infrastructure, including well-connected road networks and direct rail links, should be a top priority for the government through NCIA. To reduce competition in the future, it is essential to forge strategic agreements with Southern Thai government and logistical companies. Significant opportunities are presented by the emergence of new markets, namely in the area of halal products and halal logistics. The government should also conduct a thorough assessment of the taxation of transit cargo. Overall, it is intended that the research would provide up-to-date perspectives on the Malaysian cross-border inland port as well as the strategic directions for the relevant authorities and inland port operators.