Effective strategies needed to grow e-commerce

Through the creation of the DFTZ in KLIA Aeropolis, Liow hopes to see products being exported globally


Effective strategies are required to exploit countless opportunities created in the world trading system and cross-border trade through e-commerce, said Transport Minister Datuk Seri Liow Tiong Lai.

The government, he said, has seen the importance to provide solid infrastructure to push the e-commerce’s growth in Malaysia.

Liow said the Digital Free Trade Zone (DFTZ) in Kuala Lumpur International Airport (KLIA) Aeropolis is a testament of the government’s foresight in implementing right strategies for e-commerce to flourish.

“The DFTZ at KLIA Aeropolis is now in the implementation stage at the old low-cost carrier terminal where we have invested about RM29.5 million to set it up, and is expected to be operational by the end of 2017.

“The initiative is being piloted by Pos Aviation Sdn Bhd and Lazada Express (M) Sdn Bhd, where they will provide us with a bigger and better picture of the e-commerce sector, particularly the e-commerce logistics,” he said at the Asia Retail and O2O Conference and Expo 2017 yesterday.

Through the creation of the DFTZ in KLIA Aeropolis, Liow said he would hope to see Malaysian products being exported around the world, especially in the Asean region through the use of e-commerce.

Meanwhile, KLIA Aeropolis would have a dedicated Logistics Park which covers 400 acres (161.87ha) of developable area with a focus on industrial activities requiring access and close proximity to airport and air cargo facilities.

Additionally, there will be an allocation of seven acres of land nearer the airside within the KLIA Aeropolis for Tier 2 Air Cargo activities such as freight forwarding and global express operators.

“At the same time, Malaysia’s strategic location of being in the centre of Asean would help boost the e-commerce for the country. Also, we even have the market reach to China and India who are currently the two big emerging markets,” he said.

“That said, to ensure the success of our e-commerce, we would need a good logistics sector.”

Liow added that upgrading works of several sea ports nationwide are also in place to boost the growth of e-commerce.

“Upgrade works are in place as Kuantan Port becomes a deep sea port, while facilities at Port Klang, Melaka Gateway Port and Tanjung Pelepas Port are being improved to complement the growth of Malaysia’s e-commerce.

“The ports will not only have better infrastructure, but with our working relationship with China in the China-Malaysia Port Alliance, it has given us the add advantage in the growth our e-commerce logistics,” he added.

Other strategic initiatives include a seamless operation between the DFTZ, Westport and Northport, developing a Malaysian platform that can ride on Alibaba Group Holding Ltd to market products to China and the world, as well as facilitating the on boarding of at least 1,500 small and medium enterprises (SMEs) to market their product.

Also, there will be training for SMEs on selling products and services which include logistics services on e-commerce and to encourage local companies to set up online platform for e-commerce players to create more business opportunities for the youth.