Malaysia poised to be logistics leader

By P PREM KUMAR / Pic By MUHD AMIN NAHARUL

Malaysia could emerge as a leading logistics hub in the South-East Asian region with the boom of global e-commerce.

Transport Minister Datuk Seri Liow Tiong Lai said the country is on track to be on the global logistics map.

With the fast pace of e-commerce growth, the digital economy would contribute to an increase of around 1.4% to the country’s gross domestic product.

“With the excellent logistics infrastructure to facilitate trade by 2020, the e-commerce sector is expected to grow up to RM114 billion.

“This is in line with our aspiration to become the leading Asean logistics hub and the preferred logistics gateway to Asia,” he said at the 56th International Federation of Freight Forwarders Associations World Congress 2017 in Kuala Lumpur yesterday.

He also said the government remains committed to continuously support the growth of the logistics sector and in opening more doors to engage local and international players to serve the industry.

“Despite being on track to reinvigorate the logistics industry, we are also equally aware of the need to ensure the sustainability of the sector,” he said.

Malaysia’s current investment in logistics infrastructure amounts to nearly RM15 billion in four subsectors — rail, road, maritime and aviation.

“We are currently embarking on future massive infrastructure projects to improve our logistics capabilities estimated to be worth more than RM100 billion,” Liow said.

He added that the presence of world-class infrastructure such as the Digital Free Trade Zone, KLIA Aeropolis, new sea ports and rail connectivity would undoubtedly be a significant catalyst to the logistics industry.