Malaysia Offers Vast Opportunities In e-Commerce Fulfillment Industry

“In light of the projected double-digit growth of e-Commerce in the region, Malaysia is ready to take part in transforming the existing digital landscape into a bright digital future. The Government through MIDA has expanded the logistics incentive scheme by introducing the second round Integrated Logistics Services (ILS) incentive to encourage logistics companies to adopt technology in their operations and to position themselves as regional e-Fulfilment hub providers in Malaysia. From 2017 until March 2019, MIDA has approved eight e-Fulfilment projects in which seven of these projects are locally owned,” said YB Dr. Ong Kian Ming, Deputy Minister of the International Trade and Industry at the “Investment Opportunities in the E-Commerce Fulfillment Industry Seminar 2019” held in the Ministry of International Trade and Industry (MITI)

The Seminar, which was an initiative of the National e-Commerce Council (NeCC), was organised by the Malaysian Investment Development Authority (MIDA) in collaboration with MITI and the Malaysia Digital Economy Corporation (MDEC). It aims to position Malaysia as an “E-Fulfillment Hub”, focusing on leveraging greater integration across the industry to support its rapid growth in the country.

The event was well attended by over 350 participants from various fields, including government agencies, logistics providers, e-Commerce players and potential investors. It featured panel sessions by a broad range of speakers from government agencies (MIDA, MDEC, MITI, Customs) and industry players (GDEX, DHL, Urban Fox, Cainiao, CJ Century, Logistics Worldwide Express, Easy Parcel and iStoreiSend).

YB Dr. Ong in his speech highlighted that the joint venture between Malaysia Airports Holdings Berhad (MAHB) with Alibaba’s logistics arm, Cainiao Smart Logistics Network (Hong Kong) Ltd, to develop a regional e-Commerce and logistics hub at KLIA, is progressing well. He urged local logistics players to gear up and take advantage of the huge growth opportunities. “Companies also need to invest and adopt cutting-edge technologies, and to explore potentially disruptive technologies to create new ways of business, as well as to lower cost while enhancing overall efficiency,” added YB Dr. Ong.

The interest of companies in emerging areas, such as cold chain logistics, last mile delivery services and halal logistics is growing, due to the high margins and rising demand. The economy of the country is expected to grow between 5% and 6% and this will indeed drive the growth of the logistics industry further.

Mr. Arham Abdul Rahman, Deputy Chief Executive Officer of MIDA in his welcoming remarks said,” MIDA takes the helm in developing the nation’s e-Fulfilment hub, under the Malaysian National E-Commerce Strategic Roadmap (NESR). We focus on developing the capability and efficiency of logistics service providers in operating e-fulfilment facilities to cater to the diverse needs of the online shopping market. We continuously encourage logistics companies to invest in physical and virtual ICT systems, such as Warehouse Management Systems (WMS) and Smart Logistics to enable them to undertake complex activities. MIDA has also taken the initiative alongside MDEC to enhance talent development in the e-Commerce and e-fulfilment industries. Some of the measures in place include improving industry readiness of new graduates and encouraging SMEs to provide training for employees. In addition to generate high income jobs for Malaysians, these measures will eliminate labour market mismatch and maximise productivity.”

“eCommerce is a key tenet of the digital economy, providing far-reaching business opportunities and societal upliftment opportunities for Malaysia. MDEC applauds continuous engagement of this type borne out of collaboration between the public and private sectors, which will boost the development of our eCommerce ecosystem and strengthen the platform from which our SMEs can expand into wider markets,” said Dato’ Mathialakan Chelliah, acting Chairman, MDEC.

The event also witnessed the Memorandum of Understanding (MoU) exchange between MIDA and DHL Express. This collaboration is an initiative to attract DHL’s potential MNC clients to look at Malaysia as an investment destination either for relocation or to centralise their operational function (regional operations) as well as business expansions.

“As the world’s leading express logistics service provider with a global network comprising more than 220 countries and territories, DHL Express has been a leading advocate of international trade and a champion of globalisation for the growth and prosperity it brings. Naturally, DHL Express Malaysia’s commitment to support MIDA is very much aligned to this ethos. With a stable and growing economy, and a robust infrastructure, there is a lot that Malaysia can offer foreign companies as the country progresses toward the fourth industrial revolution (Industry 4.0)”, said Julian Neo, Managing Director, DHL Express Malaysia and Brunei.

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About MITI

MITI is the key driver in making Malaysia the preferred destination for quality investments and enhancing the nation’s rising status as a globally trading nation. Its objectives and roles are oriented towards ensuring Malaysia’s rapid economic development and help achieve the country’s stated goal of becoming a developed nation.

About MIDA

MIDA is the government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become an active and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

About MDEC

Malaysia Digital Economy Corporation (MDEC) is the government agency under the Ministry of Communications and Multimedia Malaysia entrusted to lead the nation’s digital economy forward. MDEC’s mandate includes driving digital adoption, development of industry ready tech talents, digital economy policies and global champions.

To future proof Malaysia for the digital age, MDEC will leverage its proven track record, industry credibility and experienced leadership to connect, catalyse and commercialise digital initiatives to advance a thriving and sustainable digital economy placing diversity and inclusivity at its core. #LetsBuildTogether #DigitalMalaysiaForward. To find out more about MDEC’s Digital Economy initiatives, please visit www.mdec.my or follow MDEC on: Facebook: @MyMDEC Twitter: @mymdec

For more information:

Ministry of International Trade & Industry

Strategic Communications Unit

Tel: 03 6200 0082

Fax: 03 6206 4293

E-mail: [email protected]

Ms. Wahida Abdul Rahman

Director, Business Services & Supply Chain Innovation Division, MIDA

Tel: 03-2267 6622

Email: [email protected]

Ms. Sharifah Syazreen Syed Agail

Senior Executive, Communications, MDEC