As geopolitical tensions rattle global shipping lanes and push fuel and charter costs higher, Main Market-bound MTT Shipping and Logistics Bhd is taking a pragmatic approach to protect margins: Pass-through pricing, fleet efficiency and disciplined expansion.
BusinessToday caught up with Managing Director Ooi Lean Hin as the group prepares for its listing debut to find out more about the strategy and circumventing these challenging times that seem to be faced by the shipping industry.
According to Ooi on the dynamics shaping the sector, the group has long embedded cost volatility into its business model through mechanisms such as bunker adjustment factors and emergency surcharges — effectively a dynamic pricing strategy that allows it to recover rising fuel costs without eroding profitability.
“Each episode of disruption, be it geopolitical conflict, route blockages or port congestion, effectively removes capacity from the system, either by physically stranding vessels or elongating voyage times.
“That compression in available tonnage inevitably drives charter rates higher, as we’ve seen recently with tanker markets reacting sharply to Middle East tensions,” he said.
He highlighted that in that environment, cost pressures, particularly fuel and vessel hire, escalate very quickly.
“However, the industry’s response has always been structured around the pass-through mechanisms, whether through bunker adjustment factors or emergency surcharges.
“Without these, margins would be materially eroded. For us, the priority is maintaining pricing discipline to ensure that elevated operating costs are systematically recovered, rather than absorbed,” he explained.
Riding East Malaysia’s Industrial Wave
Beyond navigating near-term volatility, Ooi revealed to BusinessToday that MTT Shipping’s growth story is anchored in East Malaysia, where it already commands a 46% market share.
“We see Sabah and Sarawak transitioning from commodity-based economies into industrial hubs, unlocking steady cargo growth, and we are effectively a proxy to that growth,” he said, noting that while market share gains may be incremental, the focus is on “future-proofing” through integrated logistics infrastructure to deepen customer loyalty and expand wallet share.
Ooi highlighted that the group is allocating the bulk of the IPO proceeds to fund the acquisition of at least 12 vessels, a strategic move to capture surging intra-Asia trade flows driven by supply chain realignment and China’s “Plus One” manufacturing shift.
“China-US trade is declining, while ASEAN export volumes are rising sharply. At the same time, production is relocating across Southeast Asia, India and beyond, fuelling demand for regional shipping capacity.
“We prefer to focus on underserved growth corridors linking ASEAN, China, India and emerging markets because seeing growth without having the assets to capture it is a missed opportunity, and these vessels are about positioning ourselves where demand is expanding,” he said, adding that the group is deliberately avoiding the crowded long-haul East-West trade.
Importantly, he emphasised that the segment MTT Shipping operates in faces a looming supply crunch, with older ships being phased out under stricter decarbonisation rules and insufficient replacements on order, supporting freight rate stability in the medium term.
“Crucially, MTT Shipping’s relatively young and fuel-efficient fleet is set to become even newer post-listing following the acquisition of additional container vessels, providing another buffer.
“With most of its vessels already modern, and 12 more planned, we are lowering fuel consumption, emissions and unit costs at a time when energy prices are expected to remain structurally elevated,” he said.
Asked if there are any changes to the acquisition due to the ongoing geopolitical tension, Ooi firmly said no changes, as they have declared some of the options already, and there are still some options for them to declare.
Resilient, Retail-Like Revenue Model
Meanwhile, despite ongoing geopolitical uncertainty, Ooi emphasised that MTT Shipping sees more opportunity than risk because the group has no direct exposure to conflict zones like the Gulf, while global disruptions are, paradoxically, tightening capacity and supporting rates.
“Unlike contract-heavy shipping peers, MTT Shipping operates more like a retail distribution network, serving a broad mix of cargo from FMCG and food staples to fertilisers and vehicles, and this diversified cargo base underpins resilience.
“Furthermore, 90% of global trade is seaborne. You can cut travel, but you cannot stop the movement of essential goods,” Ooi said.
He added that while freight rates remain cyclical, MTT Shipping is positioned in the intra-Asia and feeder segments, particularly vessels below 4,000 twenty-foot equivalent unit (TEUs), where supply is tightening due to an ageing global fleet and limited newbuild orders.
Investor Returns
Ahead of its listing on April 21, Ooi said MTT Shipping is positioning itself as both a growth and income play as the group has committed to a 50% dividend payout ratio, supported by strong cash flows and a conservative balance sheet.
“Meanwhile, with gearing below 0.5 times and headroom to expand up to 0.7 times without stress, the group retains ample flexibility to fund growth while rewarding shareholders.
“We have to balance growth and returns. Pay too much dividend, you cannot grow. But even at 50%, the payout is still attractive enough where we are still able to balance growth,” he said.
Additionally, with Malaysia’s strategic location along the Straits of Malacca and expanding port infrastructure, Ooi said the group is betting that structural shifts in global trade, not short-term shocks, will define its next phase of growth.
In summary, Ooi emphasised that MTT Shipping’s pitch to the investors is clear: They are a shipping player built not just to weather volatility, but to deliver growth.
MTT Shipping is scheduled to be listed on the Main Market of Bursa Malaysia on April 21, 2026, with the group’s IPO exercise entailing the issuance of 633.5 million new shares at RM1.03 each.
Of the total, 571 million shares will be placed out to Malaysian and foreign institutional investors — including Bumiputera investors approved by the Ministry of Investment, Trade and Industry — while 62.5 million shares will be allocated under a retail offering.
CIMB Investment Bank is acting as principal advisor, joint global coordinator, joint bookrunner, managing underwriter and joint underwriter for the IPO. CLSA Limited and CLSA Securities Malaysia Sdn Bhd are joint global coordinators and joint bookrunners, while Affin Hwang Investment Bank serves as joint bookrunner and joint underwriter.
