New Opportunities in Malaysian Logistics Market



1.Malaysian logistics prospects

According to the Google TEMASEK 2019 Southeast Asia e-Conomy report, the size of the e-commerce market in Malaysia in 2019 will reach US $ 3 billion, and it is expected to reach US $ 11 billion in 2025, accounting for about 42% of the size of Malaysia's Internet economy market. Therefore, the logistics industry in Malaysia also benefits from the fast-growing e-commerce industry. Moreover, unlike Indonesia, which has many islands and poor road conditions like Thailand, Malaysia and Singapore are more similar in that they also have better infrastructure.

Even based on the above two points, the logistics system is still a pain for local e-commerce practitioners and local users. It is still slightly difficult in some regions to reach the level of "order today and deliver next day" in China. . In the busy phase of distribution, logistics companies still have a large backlog of inventory that is too late to distribute, but it also reflects the increasing demand for logistics from local people.

2. Players in the logistics market

Part one: Third Party Logistics (3PL)

Professional logistics companies that provide freight forwarding and courier services, customers usually outsource their entire logistics services to them.

Pos Malaysia (3PL)

Pos Malaysia Berhad is a postal delivery service in Malaysia that dates back to the early 19th century. Pos Malaysia provides postal and related services, namely: standard mail, express courier, retail, international mail, e-commerce, etc. Over the years, the Malaysian Post Office has grown from a postal service provider to a provider of dynamic communications, financial services and supply chain solutions.

GD Express (3PL)

GD Express was established in 1997 to provide courier services for the local and foreign markets in Malaysia. It has 168 sites throughout East Malaysia and West Malaysia, including 85 branches, 57 agents and 26 hosting centers. GDEX has a fleet of more than 1,000 trucks and vans, mainly used to transport documents and parcels between stations and hubs for local pickup and delivery.

Xin Hwa Holdings Berhad (3PL)

Xin Hwa Holdings Berhad, established in Malaysia on January 18, 2013, is a comprehensive logistics service provider involving land transportation, warehousing and distribution business and other services. The land transportation business includes cargo transportation services and container transportation services, while other services include freight forwarding and trailer manufacturing services. Currently, the Group has 3 branches, 4 offices, more than 800 employees, more than 1,000 vehicles and 2 warehouses to support the operation of its business.

ABX Express (3PL)

ABX Express Sdn Bhd started business in Malaysia and Brunei more than 30 years ago in Labuan, and has since expanded to serve Malaysia's entire country through a network of 85 distribution centers. Joined the Kerry Group in 2016 to strengthen the business, and joined the wholly-owned subsidiary of the Kerry Logistics Network (KLN) in 2018. The main purpose is to increase market share.

Nationwide Express (3PL)

Nationwide Express was established in 1985. Its main business is to provide express delivery services. The company has more than 1600 full-time employees, 240 national mobile fleets and 500 motorcycle courier, which meet the needs of fast, efficient and reliable on-site service, and realize the rapid transfer of lightweight and high-value goods between different locations . To date, the company has a total of 180 networks, including branches and agents throughout Malaysia, Singapore, Brunei Darussalam, Thailand and Saudi Arabia.

Zepto Express (3PL)

Zepto Express was established in Malaysia in 2016. It is a last-mile logistics company that picks up and delivers goods according to customer needs, allowing customers to deliver and book at a convenient time.

Grab Express

Grab, an online ride-hailing platform that develops logistics, uses motorcycles and cars to provide instant home delivery services. It has coverage in Southeast Asia, while adopting a strategy of cooperation with Ninja Van and serving major e-commerce platforms.

Ninja Van (3PL)

Founded in Singapore in 2014, NinjaVan is a technology-based courier company that provides barrier-free courier services to businesses of all sizes throughout Southeast Asia. The goal is to make the company a core logistics partner for all e-commerce in Southeast Asia. It has now become the region's fastest growing last mile logistics company, and its network has also covered six countries in Southeast Asia-Singapore, Malaysia, the Philippines, Indonesia, Thailand and Vietnam.

Part two: Fourth Party Logistics (4PL):

Provide a resource management platform to provide a complete supply chain solution through its own information technology, integration capabilities and other resources.

DHL (Fulfillment)

DHL is a company of Deutsche Post DHL, a world-renowned postal and logistics group. It mainly includes the following businesses: DHL Express, DHL Global Forwarding, Freight and DHL Supply Chain. As a leading company providing global courier services, it also has a considerable market share in Malaysia. At the same time, DHL's local investment and construction in Malaysia has also become an important engine to promote the development of Malaysia's digital economy.

City-Link Express (Fulfillment)

City-Link was established in 1979 and is the first local courier company in Malaysia to provide parcel courier services. The company has expanded to integrate other related services, namely air and ocean shipping, warehousing, third-party logistics, supply chain management and management of the company's mailing rooms.

Tiong Nam Logistics Holdings (supply chain integrator)

Tiong Nam Logistics Holdings is a Malaysian investment holding company. The company, through its subsidiaries, is engaged in transportation, property rental, warehousing, cold storage, courier and related services. The company also holds a 50% stake in Vietnam United Container Warehouse Services Co., Ltd.

CJ Century Logistics Holdings Berhad (Supply Chain Integrator)

CJ Century is a leading supply chain solution provider founded in 1970. Starting from a freight forwarding company in the 1970s, the group has been providing diversified integrated logistics, petroleum logistics, procurement logistics and data management solutions. Its unique value-added solutions include warehousing and distribution services, which can be expanded and customized based on customer demand for products and delivery service requirements to meet customer needs.

SNT Global (Fulfillment)

Established in 2000, SnT Global is a logistics provider that provides comprehensive logistics services through warehousing, transportation, distribution, freight forwarding and freight forwarding. SnT Global has 6 warehouses, 2 distribution centers in Malaysia and Singapore, and 156 freight cars to optimize the efficiency of customers' supply chains.

3. Future trends

With the continuous rise of e-commerce in Malaysia, this means that there is an urgent need to establish a huge logistics network in the local area. This not only requires the support of e-commerce companies and the vigorous development of infrastructure, but also requires more outstanding collection warehousing, distribution, and finally A one-kilometer, e-commerce management platform as one integrated logistics company.

Nowadays more and more players enter the market, and the competitiveness is also constantly rising. Under the huge environmental pressure, only the points just mentioned can stand out in the logistics market. At the same time, logistics companies should integrate value-added services in the future development, such as online and offline simultaneous services, and own core storage facilities. These are important factors that determine the future development of logistics companies.

OES is such a pioneer who is deeply rooted in the international logistics industry, focusing on Malaysia's logistics supply chain channels, integrating global resources, smelting business wisdom, and providing Malaysians in Malaysia with the most convenient and fast one-stop Malaysian logistics air shipping supply chain channels.