Malaysia Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Malaysian Freight and Logistics Market is segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other Services) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade, and Other End Users). The report offers market size and forecasts in values (USD billion) for all the above segments.

Market Snapshot

Malaysian Freight and Logistics Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >4 %
Malaysia Freight and Logistics Market Major Players

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Market Overview

The Malaysian freight and logistics market (henceforth, referred to as the market studied) is expected to register a CAGR of more than 4% during the forecast period (2022 - 2027). Malaysia was hit hard by the COVID-19 pandemic, which resulted in currency devaluation (MYR) and a reduction in the country's gross domestic product (GDP). Malaysia's economy contracted by 5.6% in 2020, its lowest level since the Asian Financial Crisis of 1998. The pandemic's inception and spread have had a profound impact on the freight and logistics industry. Movement Control Order (MCO) and stricter quarantine procedures have a substantial influence on the primary agricultural industries. SME firms from a variety of industries make up 99% of Malaysia's total business establishments. A survey of Malaysian supply chain executives conducted between December 2020 and February 2021 found that 39% of those polled claimed the COVID-19 epidemic had harmed their supply networks. In contrast, 18% of supply chain executives stated that the epidemic enhanced their company's income. The pandemic had a huge impact on the worldwide supply chain due to travel restrictions.

The freight and logistics business's key development engine is e-commerce, which generates large profits for the industry. In recent years, the rise of the e-commerce industry has coincided with an increase in the number of business prospects for transporting goods. Companies are benefiting from the expansion of e-commerce in the country. Because of the high margins and increased demand, corporations are becoming more interested in emerging areas such as cold chain logistics and last-mile delivery services. The increase in demand for online purchases backed by campaigns like the 'Stay Home Essential' campaign by Post Malaysia made online purchasing easier during the pandemic through various online vendors offering a variety of necessities and general items. In September 2021, the Transport Ministry allowed the use of truck heads and trailers shared under one group of companies as part of its commitment to boost the logistics industry through greater competitiveness and efficiency.

Singapore remained ASEAN's largest export market, accounting for 52.1% of the overall exports to the region. Exports of E&E products, petroleum products, machinery, equipment, and components increased by 3.7% to MYR 142.16 billion. Exports to Thailand decreased by 19.6% to MYR 45.27 billion, owing to lower exports of E&E products, crude petroleum, machinery, equipment, and components. Other manufacturing (SSD), jewelry, and processed food, on the other hand, saw a surge in exports. Agriculture exports increased by 8.7% from the previous year to MYR 71.68 billion in 2020, accounting for 7.3% of total exports. In 2020, mining goods’ exports accounted for 5.9% of overall exports, or MYR 57.39 billion, a decrease of 29.6% from the previous year.

Scope of the Report

Freight refers to any type of goods, items, or commodities transported in bulk via air transport, surface transport, or sea/ocean transport. Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination.

The Malaysian freight and logistics market is segmented by function (freight transport, freight forwarding, warehousing, value-added services, and other services) and end user (manufacturing and automotive, oil and gas, mining, and quarrying, agriculture, fishing, and forestry, construction, distributive trade, and other end users). The report offers market size and forecasts for the Malaysian freight and logistics market in value (USD billion) for all the above segments.

Freight Transport
Shipping and Inland Water
Freight Forwarding
Value-added Services and Other Services
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Distributive Trade (Wholesale and Retail)
Other End Users

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Key Market Trends

Growth of Trade Driving the Market

Due to the widespread lockdown measures enacted as a result of the COVID-19 epidemic, 2020 was difficult for global trade. This directly impacted global supply chains, particularly the flow of products and services and manufacturing activity. Despite this unusual circumstance, Malaysia's foreign trade functioned admirably, with exports returning in the second half of 2020 after a period of negative growth in the first half. This was linked to the economy's gradual liberalization and the gradual revival of external demand. December's exports were the highest monthly total for 2020. In 2020, exports to China reached a new high, while the United States experienced a similar uptick, with the highest value in the prior decade. Exports to rising markets such as Costa Rica, Kazakhstan, Kenya, Nigeria, Ghana, and Cote d'Ivoire grew significantly. Rubber, electrical and electronic (E&E) products, and palm oil and palm oil-based agriculture products saw significant increases in exports.

Malaysia's exports, estimated at MYR 980.99 billion in 2020, fell marginally by 1.4% from the previous year, owing to the unfavorable external climate caused by the COVID-19 pandemic. Exports increased by 4.8 % in 2020, indicating a recovery. As the economy gradually reopened and external demand recovered, this was a major improvement from a 7.9% decline in the first half of 2020. In 2020, total trade was MYR 1.777 trillion, down by 3.6% from the previous year, while imports were MYR 796.19 billion, down by 6.3 %.

In 2020, ASEAN remained Malaysia's most important and strategic trading partner, accounting for 25.2% of the country's overall trade. The value of trade with ASEAN was MYR 447.4 billion, down by 9% from the previous year. Exports to ASEAN totaled MYR 272.92 billion in 2020, accounting for 27.8% of Malaysia's total exports. Lower exports of crude petroleum, metal manufacturing, petroleum products, and iron and steel goods led to a 4.7% drop in exports to the region.

Malaysian Freight and Logistics Market Share

E-commerce is Driving the Logistics Industry

With the internet becoming the world’s most important source of information with a growing influence on consumer behavior and decisions, it has become a platform for all types of businesses to promote and sell their products and services. With SMEs being the majority bulk of businesses today in Malaysia, the electronic commerce industry is expanding rapidly as more and more SMEs are adopting B2B e-commerce. This, in turn, has resulted in the establishment of an increasing number of e-commerce firms catering to the needs of SMEs, thus creating more jobs in the economy.

SMEs have traditionally struggled with labor-intensive business processes that have a negative impact on efficiency, productivity, and organizational growth. SMEs gain greatly from B2B e-commerce because transactions are completed online, saving time and resources. B2B e-commerce also enables SMEs to optimize warehousing, call centers, and other services that could create bottlenecks in the company's efforts to meet its growth targets.

The government is also taking steps to increase e-commerce sales. The government pushed SMEs to go online while providing financial aid/subsidies through its 'Go-eCommerce Onboarding campaign', which ran from July to December 2021. The goal is to assist small businesses in expanding their reach through e-commerce. Malaysia's e-commerce revenue increased by 17.1% Y-o-Y to MYR 279 billion in the third quarter of 2021, up from MYR 238.2 billion the previous quarter. From January to September 2021, e-commerce revenue totaled MYR 801.2 billion, up by 23.1% Y-o-Y.

In June 2021, UPS extended its retail presence in Malaysia with a new partnership with ParcelHub, to capitalize on Malaysia’s surging e-commerce and logistics demand. UPS already has an existing partnership in Malaysia with third-party fulfillment services provider Mailboxes Etc., which has over 90 outlets. But the sharp rise in online shopping behavior and last-mile parcel delivery and logistics management led UPS to raise its fulfillment profile locally with a move to leverage ParcelHub’s 200 outlets nationwide.

Malaysian Freight and Logistics Market Trends

Competitive Landscape

Currently, the Malaysian freight and logistics market landscape is fragmented, with a large number of players. For instance, the country's trucking industry comprises independent truckers and SMEs, who account for more than 70% of the market. However, the industry is expected to transform into a consolidated state in the future. Some of the key players in the market include Tiong Nam logistics, Xin Hwa, CJ Century, GD Express, and DHL. In order to gain significant market share and serve the rising demand, companies are adopting the merger and acquisition trend. The rise in e-commerce is resulting in vertical and horizontal consolidation among the logistics and e-commerce players to gain scale and network.

Recent Developments

June 2021: FedEx express, a FedEx Corp. subsidiary and one of the world's largest express delivery businesses, announced that FedEx parcels could now be collected at all participating Parcel365 and PopBox lockers strategically positioned throughout the Klang Valley. Customers who choose to pick up their items from a large network of lockers that are open 24 hours a day, seven days a week, will benefit from this arrangement.

September 2021: Cainiao launched a new freighter service from Shenzhen and Hong Kong to east Malaysia as it looked to reduce shipping times for the e-commerce platform Lazada. The new service is expected to operate three-times-per-week to Kota Kinabalu, Sabah, and Kuching, Sarawak. The flights would shorten the average delivery time by two days, from 14 to 12 days or as fast as seven days. Logistics costs could come down by as much as 50%.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness and Porter's Five Forces Analysis

    4. 4.4 Value Chain/Supply Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Technological Trends (Overview of Industry 4.0 in Malaysia and its Impact on the Logistics Sector)

    7. 4.7 Insights into the E-commerce Industry (Domestic and Cross-border E-commerce)

    8. 4.8 Insights into Cross-border Trucking, Intermodal Transportation, and Transit Trade though Malaysia

    9. 4.9 Spotlight - China-Europe Rail Freight Transport

    10. 4.10 Elaboration on Halal Logistics

    11. 4.11 Brief on Digital Free Trade Zone (DFTZ) and China-Malaysia Bilateral Relations

    12. 4.12 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION (Market Size by Value)

    1. 5.1 BY FUNCTION

      1. 5.1.1 Freight Transport

        1. Road

        2. Shipping and Inland Water

        3. Air

        4. Rail

      2. 5.1.2 Freight Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Value-added Services and Other Services

    2. 5.2 BY END USER

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil and Gas, Mining, and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Construction

      5. 5.2.5 Distributive Trade (Wholesale and Retail)

      6. 5.2.6 Other End Users


    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 International Companies

        1. Deutsche Post DHL Group

        2. Yusen Logistics Co. Ltd - TASCO Berhad

        3. Nippon Express Co. Ltd

        4. CEVA Logistics

        5. Kerry Logistics Network Limited

        6. DB Schenker

        7. Agility Logistics Pvt. Ltd

        8. Hellmann Worldwide Logistics

        9. DSV

        10. Kuehne + Nagel International AG

        11. United Parcel Service Inc.

        12. FedEx Corporation*

      2. 6.2.2 Domestic Companies

        1. Tiong Nam Logistics Holdings Bhd

        2. Pos Malaysia Bhd

        3. CJ Century Logistics Holdings Berhad

        4. Xin Hwa Holdings Berhad

        5. Complete Logistic Services Bhd

        6. GD Express Carrier Berhad

        7. TransOcean Holdings Bhd

        8. MMC Corporation Berhad

        9. City-Link Express (M) Sdn Bhd

        10. KTM Berhad

        11. PKT Logistics Group Sdn Bhd*

      3. 6.2.3 Other Companies (Key Information/Overview)

        1. SF Express (Group) Co. Ltd, Aramex PJSC, Jp Logistics Sdn Bhd, Taipanco Sdn Bhd, Skynet Worldwide (M) Sdn Bhd, YCH Group Pte Ltd, JSI Logistics Sdn Bhd, FM Global Logistics, Swift Group, Nationwide Express Courier Services Bhd, Airpak Express (M) Sdn Bhd, and DPEX Worldwide*

    3. *List Not Exhaustive

  8. 8. APPENDIX

    1. 8.1 GDP Distribution, by Activity and Region

    2. 8.2 Insights into Capital Flows

    3. 8.3 Economic Statistics - Transport and Storage Sector and Contribution to the Economy

    4. 8.4 External Trade Statistics - Export and Import, by Product

    5. 8.5 Insights into Key Export Destinations

    6. 8.6 Insights into Key Import Origin Countries

    7. 8.7 List of Prospective Clients for Logistics Service Providers**

**Subject to Availability
*List Not Exhaustive

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Frequently Asked Questions

The Malaysia Freight and Logistics Market market is studied from 2018 - 2027.

The Malaysia Freight and Logistics Market is growing at a CAGR of >4% over the next 5 years.

Deutsche Post DHL Group, CEVA Logistics, Tiong Nam Logistics Holdings Bhd, CJ Century Logistics Holdings Berhad, Xin Hwa Holdings Berhad are the major companies operating in Malaysia Freight and Logistics Market.

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