Press release
Malaysia Logistics Market Report, Market Leading Players, Market Analysis, Market Trends and Outlook to 2029
With world class port infrastructure and linkages, the Malaysia logistics market is witnessing rapid growth. Even during this highly competitive environment, the logistics sector accounted for almost 5% of Malaysia's total GDP for 2024 indicating the significance of the sector to the economy. In 2024, internet penetration reached approximately 97%, providing favourable conditions for e-commerce and digital services. This leads to increase in demand for last-mile delivery and warehouse automation. Furthermore, government led initiatives such as East Coast Rail Link (ECRL) is expected to enhance Malaysia's trade route by 2027 reducing freight transportation time by over 30%. Infrastructure investments are also shaping the logistics market in Malaysia.
Malaysia Logistics Market Drivers
• Cross-Border Trade: The logistics market in Malaysia is witnessing rising exports which is driven by the increasing adoption of e-commerce. In 2024, cross border spending was approximately 40% of all the e-commerce transaction.
• Technological Integration: The increasing technological integration like AI and ML in logistic sector is shaping the market. AI-powered technologies reduce costs and drive higher operational efficiency. In 2024, predictive demand analytics reduced last-mile delivery costs by nearly 20%.
• Green Logistics: Logistics providers are incorporating eco-friendly practices to reduce carbon emissions. In 2024, FebEx conducted cross boarder EV delivery trial which reduced approximately 100 kilograms of CO2 emissions.
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Growing Port Congestion in Malaysia
The ports in Malaysia have insufficient storage leading to a major challenge of port congestion. The spillover effect from Singapore's overburdened ports is also supporting the congestion with over 20 container vessels pulled off Port Klang in 2024. Furthermore, the country's geographical location impacts sea trade leading to ports overcrowding. This delays and trade blockages are forcing logistics providers to increase the freight rates creating dissatisfaction among customers and businesses.
Malaysia Logistics Market Leaders and Competition
The Malaysia logistics market is experiencing high competition with domestic and global players fighting for dominance. The players are investing in research and development to expand their operations. The major market players include FedEx, J&T Express, and DHL. FedEx dominates the market by enhancing AI-powered routes for cross-border logistics which has reduced delivery delay by over 25% in 2024. J&T express aggressively invests in smart sorting facilities and express delivery hubs that supports the growing demand for e-commerce. DHL focuses on offering green logistics by incorporating automated warehousing systems and electric delivery vehicles. The new entrants will face intense competition with existing players leveraging technological integration and sustainable logistics solutions to make Malaysia Southeast Asia's logistic hub.
Recent news
January 2025: Malaysia and Singapore announced agreement on development of special economic zone in Johor, with aim to support investments and smooth movement of goods between countries. The agreement will focus on 50 projects over the next five years and create 20,000 skilled jobs.
December 2024: Port of Tanjung Pelepas saw significant growth and became the first container terminal in Malaysia to handle more than 12 million TEUs in a single year.
Get an In-Depth Analysis of Malaysia Logistics Market [2023-2029] @ https://www.tracedataresearch.com/industry-report/malaysia-logistics-market
Malaysia Logistics Market Future outlook
The Malaysia logistics market will undergo major transformation in upcoming years. Cross-border trade, technological integration, and sustainable and eco-friendly practices are some of the key influencing factors contributing to the market growth. By 2029, more than 45% of carbon emissions are expected to be reduced by adopting electric vehicles in logistics. Logistics providers are anticipated to utilize AI based technologies such as blockchain for supply chain transparency, which will help to decrease delivery cost by around 15% by 2029. Furthermore, East Coast Rail Link (ECRL) and the Johor-Singapore SEZ's trade expansion will also support Malaysia logistics market.
Consultant at TraceData Research In their latest publication "Malaysia Logistics Market Outlook to 2029: By Mode of Transport (Air, Pipelines, Rail, Road, Sea and Inland Waterways), By Service Mix (Freight Forwarding Market, Warehousing Market and Value-Added Services), and By End users (Agriculture, Fishing and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others)" believe that businesses should automate last-mile delivery and leverage EV fleets to gain long term profitability.
Explore Our Other Logistics Related Report by Trace Data: -
Indonesia logistics and warehousing Market- https://www.tracedataresearch.com/industry-report/indonesia-logistics-and-warehousing-market
Philippines Logistics and Warehousing Market- https://www.tracedataresearch.com/industry-report/philippines-logistics-and-warehousing-market
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TraceData Research is a full-stack market research company founded by research professionals with over 15 years of industry experience. The company is recognized for its proprietary methodologies, deep consumer understanding, high-quality research, and entrepreneurial mindset.
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