Promising growth, vast opportunities in logistics industry – MITI

KUALA LUMPUR, July 10 (Bernama) � There is promising growth and vast opportunities in the logistics industry with the government positioning Malaysia as an e-fulfilment hub to leverage on the rapid growth of e-commerce.

International Trade and Industry (MITI) Deputy Minister, Dr Ong Kian Ming said the logistics industry had been revolutionised by emerging technologies, resulting in new growth areas such as e-commerce and the last mile delivery markets.

In light of the projected double-digit growth of e-commerce in the region, Malaysia is transforming its existing digital landscape into the bright digital future.

Malaysia targets the doubling of e-commerce growth to 20.8 per cent by 2020, from 11 per cent compound annual growth rate at present, he said in his keynote address at the seminar on Investment Opportunities in e-Commerce Fulfilment Industry here today.

The one-day seminar, an initiative of the National e-Commerce Council, was organised by the Malaysian Investment Development Authority (MIDA) in collaboration with MITI and Malaysian Digital Economy Corporation.

Ong said the government through MIDA had expanded the logistics incentive scheme by introducing the second round of Integrated Logistics Services ( ILS) incentives.

This was to encourage logistics companies to adopt technologies in their operations and position themselves as regional e-fulfilment hub providers in Malaysia, he added.

From 2017 until March this year, MIDA approved eight e-fulfilment projects, of which seven are locally owned.

The government also allocated RM210 million from 2019-2021 to assist up to 500 small and medium enterprises through the industry4wrd Readiness Assessment, to understand their capabilities and gaps, and enable firms to strategise and plan to move towards being e-fulfilment hub providers.

Ong urged local logistics players to gear up and take advantage of the huge growth opportunities by investing and adopting cutting edge technologies, to create new ways of business, as well as lower costs, while enhancing overall efficiency.

The logistics industry forms the backbone to the supply chain and is recognised as key to stimulating trade, facilitating business efficiency and spurring economic growth, he said

As orders become more complex and the variety of goods increases, going digital is becoming imperative, he added.

Meanwhile, the event also witnessed a Memorandum of Understanding (MoU) exchange between MIDA and DHL Express, the express logistics service provider with a global network embracing over 220 countries and territories.

On the MoU, MIDA’s deputy chief executive officer, Arham Abdul Rahman said the collaboration was an initiative aimed at attracting DHL’s multinational clients to look at Malaysia as an investment destination either for relocation or to centralise their regional operations as well as for business expansion.

Source: BERNAMA (News Agency)