The role of logistics as a crucial factor in Malaysia’s trade and economic growth cannot be understated and its importance as an enabler of the nation’s trade-dependent and export-oriented economy cannot be overemphasised, yet many are still unaware of this fact.
As this global Multi-Billion Dollar industry grows the question remains, how will Malaysian companies facilitate and creates efficiency for the supply chains of global players and how will the stakeholders in Malaysia chart the future of the countries logistics sector?
Malaysia has long been seen as a gateway to ASEAN, and has a host of International agreements and a long history of global trade in a recent interview the Organising Chairman of the Malaysia Global Business Forum, Nordin Abdullah commented “Malaysia has the advantage of several free trade agreements with key nations such as Japan, Pakistan, New Zealand, India, Chile and Australia and all the ASEAN nations under AFTA.”
“Growth of the logistics sector in Malaysia is almost guaranteed as the economy is expected to grow between 5% and 6% annually in the coming years, while comparatively low compared to some Asian countries it is relatively high compared to the global average of 3.7%.” he continued
Malaysia has well-developed Infrastructure according to the MIDA website “Infrastructure in Malaysia is designed to serve the business community; it is one of the best in Asia. Telecommunications network served by digital and fibre optic technology, five international airports (all with air-cargo facilities), well-maintained highways and seven international seaports make Malaysia an ideal springboard to the Asia-Pacific market.”
“Industries in Malaysia are predominantly located in over 500 industrial estates and Free Zones developed throughout the country. These zones are categorised as export processing zones, which cater to the requirements of export-oriented industries. There are also specialised parks that have been developed to cater to the needs of specific industries.”
Moving forward, while the prospects for Malaysia’s logistics sector are positive, there is much room for improvement. To enable the logistics sector to handle greater volumes of freight, to speed up the time taken to deliver goods across the supply chains and to lower the cost of this delivery, several improvements need to be made. These issues and more will be discussed in the next episode of MGBF Industry Reports – “Inside Malaysia’s Logistics Industry”
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