Malaysia must quickly assess potential impact of Thailand’s land bridge project

ALOR SETAR, Dec 3 — Malaysia cannot afford to wait until Thailand has realised its plan to build a land bridge between the Indian and Pacific Oceans before taking the necessary measures to benefit from the project, according to an economic expert.

Associate Prof Shazida Jan Mohd Khan, a fellow of the Economic and Financial Policy Institute (ECOFI) at Universiti Utara Malaysia’s (UUM) School of Economics, Finance and Banking, emphasised that the project’s impact, particularly on the national economy, has to be assessed and studied immediately.

“Although this project is still a long way from being implemented, we cannot just wait for it to be completed because the infrastructure will compete with Malaysia’s shipping sector.

“This land bridge will offer a faster and cheaper alternative in terms of logistics for ships that are currently passing through the Straits of Melaka,” she told Bernama when commenting on Thai Prime Minister Srettha Thavisin’s recent announcement on the land bridge project.

According to Shazida Jan, one step that Malaysia can take is to develop the industrial and logistics sector in the peninsula’s northern region, namely in Perlis, Kedah and Penang.

She said the proposed Kulim International Airport (KXP) project in Kedah will give an added value as it will support Thailand’s land bridge project while also benefitting Malaysia.

“We need to look at both these projects (Thailand land bridge and KXP) positively and evaluate them in terms of their strengths and constraints.

“Without a doubt, cargo hub services will develop in line with current needs and the KXP will be able to support Penang port and cargo services at Penang International Airport positively,” she said.

Meanwhile, UUM Research Institute for Indonesia, Thailand and Singapore (UUM-ITS) research fellow Associate Prof Abdul Rahim Anuar said Malaysia has to participate directly in the construction of the land bridge if the country is to benefit from it.

This can be done by the provision of investments or expertise by local companies to the Thai companies involved in the project.

“The land bridge project may not benefit Malaysia after it is completed as it is situated quite far from Malaysia. Therefore, we should be involved in its construction to benefit from it,” he said.

Meanwhile, Kedah’s Industry and Investment, Higher Education, Science, Technology and Innovation Committee chairman Haim Hilman Abdullah said the state and federal governments need to take the initiative to examine the project.

“This project presents a challenge for us. It has a great impact from a geopolitical perspective, and the state and federal governments need to examine it,” he said at the Kedah State Legislative Assembly recently.

Speaking at a media conference after a one-day working visit to Sadao, Thailand, on November 27, Prime Minister Datuk Seri Anwar Ibrahim said Thailand’s plan to build the project would also benefit Malaysia

He said the Thai Prime Minister also assured the involvement of Malaysia in the project.

Thailand was reported to have submitted a proposal to build sea ports and a land bridge connecting the Gulf of Thailand and the Andaman Sea that will reduce ships’ travel time by bypassing the Straits of Melaka.

Srettha reportedly told investors in San Francisco, United States, that the project, estimated to be worth 1 trillion baht (RM130 billion), could shorten the travel time by an average of four days and save 15 per cent in shipping costs.

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