Loke said a Cabinet paper will be presented within the next two months for approval to transfer container cargo operations from Padang Besar to the new PIP, Bernama reported.

“If this project moves forward, it will certainly become an economic project that will stimulate the economy in the northern region and Peninsular Malaysia,” he told reporters  after chairing a national logistics task force meeting in Sepang.

Loke said his ministry has expressed its full support for the initiative in principle as it will enhance the region’s capability to handle increased cargo flow between Thailand and Malaysia.

He also said that relocating operations to the PIP will require careful planning and coordination between key agencies, including the customs department, the immigration department and various border control authorities.

“We will carry it out as smoothly as possible to avoid disruptions to operations and export-import activities. That is why Cabinet approval is needed to provide agencies the authority to cooperate,” he said.

He said the PIP project demonstrated the government’s commitment to the development of all states, including those led by the opposition.

“Although Perlis is not governed by the unity government, we continue to make efforts to develop all states and regions in Malaysia,” he said.

The project aims to transform Perlis into a border city and international logistics hub.

It will be implemented as a public-private partnership, with the Northern Corridor Implementation Authority overseeing the development of external infrastructure, while Mutiara Perlis Sdn Bhd, a private entity, will manage the port and related facilities.

An earlier report said freight forwarders from Bangkok, Laos and some parts of China were expected to use the PIP before the containers go to the preferred ports, be it in Penang or Singapore. The inland port is expected to handle over one million containers annually.