KUALA LUMPUR, Dec 18 — Malaysia is planning to establish a cold storage air freight hub in Sabah to expand seafood exports to Greater China, marking a strategic move to strengthen trade ties with its largest trading partner.

Speaking at the Malaysia-China Summit in Kuala Lumpur yesterday, Transport Minister Anthony Loke emphasised the importance of Sabah’s fisheries industry in tapping into the Chinese market, according to South China Morning Post (SCMP).

"Sabah produces a lot of seafood products, a lot of fisheries which can be exported to China,” Loke was quoted as saying.

He also outlined plans to upgrade Kota Kinabalu into a cold chain cargo facility, enabling faster and more efficient access to China.

Sabah, which contributes roughly a quarter of Malaysia’s total fisheries output, exported seafood worth nearly RM174 million to mainland China in 2022, alongside RM43.6 million to Hong Kong, SCMP said, quoting the state fisheries department.

China has been Malaysia’s top trading partner for 15 consecutive years. Trade between the two nations reached RM396.14 billion in the first 10 months of 2024, a 7.6 per cent increase compared to the same period last year.

Logistics has been central to Malaysia’s efforts to position itself as a trade gateway for the 10-member Association of Southeast Asian Nations (Asean). Enhancing air freight infrastructure is a crucial step in this strategy.

The Sabah hub is part of a broader plan to develop multiple aviation cargo hubs across Malaysia.

Loke also detailed ambitions to transform Kuala Lumpur International Airport (KLIA) into an Asean e-commerce gateway, linked with the Zhengzhou Xinzheng cargo hub in central China.

"We want to make it a dual hub concept, where Zhengzhou will be the hub for the Chinese market and KLIA will be the hub for Asean destinations,” he was quoted as saying by SCMP.

Additionally, Penang International Airport is slated to host a third cargo hub to cater to the growing demand from the state’s semiconductor industry, highlighting Malaysia’s diversified economic priorities.