Table 5 Positive and negative implications of Kra Canal on maritime business in Malaysia

Political Aspects

1. Malaysia and Thailand will have more Memorandum of Understandings (MoUs) and economic cooperation if the shipping hub is changed.

1. Trade or bilateral relation between Malaysia and other countries might change due to the movement of investment from the area that surrounds the main ports to possibly Satun or Songkhla, Thailand.

Economic Aspects

1. Cost savings for search and rescue (SAR) activity at the Strait of Malacca.

2. Save on cleaning costs due to oil spills.

3. Penang is expected to grow very fast due to its proximity to the canal.

4. The Tok Bali Port will be potentially developed to supply bunker fuel for all vessels.

5. The economy development of both the North and East coasts of Malaysia is expected to increase due to the port change.

6. Fishery activity at the Johor Strait is expected to increase because of fewer oil spills and pollution problems.

1. The Strait of Malacca will not be one of the important international venues for transporting cargo to and from Europe and the Far East.

2. Fewer foreign going vessels will call at the three main Malaysian ports.

3. Port Klang, Johor Port and Port Tanjung Pelepas are expected to experience loss in port trade revenue which directly impacts port revenue and profit.

4. Fewer ship calls mean less revenue from vessel operators, consignees and consignors due to less cargo handled by the main ports.

5. Less cargo handled means fewer import and export activities which lead to the reduction of import and export duties collected by customs.

6. Less cargo handled by the ports will affect haulage/logistics and supply chain companies which lead to less income/profit.

7. Truck surplus will follow because of low market demand.

8. Overall, there is a drop in the maritime economy and contribution to the Malaysian economy.

Social Aspects

1. The social life patterns in both the North and East coasts of Malaysia are expected to be affected.

2. Fishing income in Johor is expected to increase in line with the growth of the fishery industry.

1. The social life patterns of the communities around the three main ports may be maintained or slightly negatively affected.

2. High unemployment rate is expected to take place due to the possible downsizing of logistics and supply chain companies.

3. If the unemployed increase in number in the surrounding areas of the three main ports, an increase in the crime rate is very much possible.

Technological Aspects

1. The current technology at the Penang Port can be further upgraded to increase the efficiency of port operations.

1. A large amount of investment is needed to buy high technology for ship and port operations at the Penang Port.

Legal and Policy Aspects

Environmental Aspects

1. Emission and pollution along the strait will be reduced.

2. There is potential for recovering the marine habitat, biodiversity and ecosystem along the strait.

1. Emission and pollution are expected to increase in the north region of Malaysia (Penang, Tok Bali) due to the shipping activities in that area (oil spills can reach the Malaysian coast because of wave movement and currents).

2. There is concern about organisms/micro-organisms and their habitat on both sides of the sea (South China and Andaman Seas) because of the difference in salinity as water flows easily through the canal (which will affect Malaysian water if the canal is built near Malaysia).

Safety and Security Aspects

1. Fewer vessel collisions or accidents

2. Reductions in oil spills due to collisions.

3. Less piracy activity at the Malacca Strait.

1. Spill over of separatist movement on northern top of Malaysia.