Malaysia's Logistics and Warehousing Sector Thrives with Trade Boost and E-commerce Surge

KLANG, Malaysia - May 10, 2023 - PRLog -- Malaysia stands out as one of the world's most diversified economies, benefiting from revenue sources such as the service sector, manufacturing, agriculture, and mining. This economic diversity has played a crucial role in sustaining growth, even during declines in specific sectors. The country's strong trade performance, ranking 24th globally, further bolsters its economy and creates opportunities for the logistics and warehousing sector. Malaysia's strategic geographic location as a trade route between the West and East fuels high cargo shipments, making cargo movement the preferred mode of logistics.

COVID-19 Impact: E-commerce Surge and Last Mile Delivery Boost
The COVID-19 pandemic has boosted last mile delivery and e-commerce in Malaysia. Logistics players are adopting emerging technologies to improve services. The surge in e-retailing due to lockdowns has increased the demand for warehousing, driving the growth of the logistics sector.

Land Transport as a Primary Mode and Positive Outlook
Malaysia prioritizes land transport, including rail and road networks, as primary modes of transportation. The transport and storage subsector saw 5.8% growth in 2018, with a projected 7.33% CAGR from 2021 to 2027. Malaysia Post experienced a 108% increase in daily parcel demand during the MCO period.

Approved Logistics Investments and Growth Drivers
Selangor state had 151 approved logistics investments in April 2018, focusing on sectors like chemicals, oil and gas, automotive, E&E, and ICT. Manufacturing, pharmaceuticals, food, e-commerce, and 3PLs drive Malaysia's logistics industry growth.

Digital Free Trade Zone and Boosting E-commerce
The Digital Free Trade Zone in Malaysia, introduced in 2017, aims to empower SMEs for seamless cross-border commerce, double e-commerce growth and contribute significantly to GDP. The target is to reach MYR 211 billion (approx. USD 47.7 billion) by 2020.

Rising Warehouse Rentals and Challenges
Malaysia's warehousing sector is dominated by medium and small-sized warehouses. Intense price competition from unorganized players offering low-cost services poses challenges for organized players, who primarily serve industries. Warehouse rents have risen by 10% to 20% in 2020 due to increased demand and limited supply.

Makreo Research's report, titled "Malaysia Freight Forwarding Industry and Forecast to 2027 – COVID-19 Impact Assessment," provides a comprehensive analysis of Malaysia's economy, political environment, technological overview, and demographic profile. The report delves into various parameters, including road, rail, air, and sea port infrastructure, positioning Malaysia in the global logistics index.

Find Out More:
Malaysia Freight Forwarding Industry and Forecast to 2027 COVID-19 Impact Assessment (https://www.makreo.com/report/malaysia-freight-forwarding...)