Malaysia Road Freight Transport Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Malaysia Road Freight Transport Market is segmented by Destination (International/ Cross-border, Domestic), and by End-User (Construction, Oil & Gas and Quarrying, Agriculture, Fishing, and Forestry, Manufacturing, Distributive Trade, Others ).

Market Snapshot

CAGR Growth
Study Period: 2017-2026
Base Year: 2020
CAGR: <4 %

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Market Overview

Malaysia's road freight transport market is projected to grow at a CAGR of 4% during the forecast period. From a majorly agriculture-based economy, expansion has proceeded to the degree that manufacturing is gradually emerging as a leading sector. Halal logistics has become an important part of freight and logistics in Malaysia. Road linkage in Malaysia covers 210 658 kilometers, of which 79% are paved, and 1969 km are expressways. The Malaysian road system facilitates almost 80% of freight logistics with the remaining portion catered by railways. Road networks connect port Klang, PTP, and Penang Port to and from the hinterland. With more than 60% of the population being Muslim in Malaysia, halal transportation has become important for the country. In 2014, Nippon Express, a leading logistics service provider obtained Halal certification in Malaysia. Halal certification means that during the transportation process if any product comes into contact with Haram produce (alcohol, pork, etc.), there is a chance that it may lose its Halal qualification. According to the World Bank, the LPI (Logistics Performance Index) rank of Malaysia among the 160 countries in the world was 41st position in 2018.

Scope of the report

The Malaysia road freight transport market report provides insights on the Impact of E-commerce Growth on the Market, the Impact of Regulations and Investments on the Road Freight Logistics Sector, and Insights on Cross-Border Trade among others. The report provides company profiles to understand the competitive landscape of the market. The report also provides qualitative and quantitative information on segmentation by destination (International/Cross-border, Domestic), and by end-users (Construction, Oil & Gas and Quarrying, Agriculture, Fishing, and Forestry, Manufacturing, Distributive Trade, Others ).

By Destination
By End Users
Manufacturing and Automotive
Oil and Gas, Mining and Quarrying
Agriculture, Fishing and Forestry
Dsirtibutive Trade (Wholesale and Retail Trade)
Pharmaceutical and Healthcare
Other End Users

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Key Market Trends

E-Commerce growth driving the road freight transport market

Malaysia is the 38th largest market for eCommerce with a revenue of US 4 billion dollars in 2020. Market expansion in Malaysia is expected to continue over the next few years, as indicated by the Statista Digital Market Outlook. It has been predicted that the compound annual growth rate (CAGR 20-24) for the next four years will be 18%. This growth in e-commerce has been coupled with the growing consumer preference for online shopping. Malaysia ranked 2nd in Statista’s world’s fastest-growing grocery market list in 2018, next only to Singapore registering a higher Year-On-Year increase. The positive growth of the e-commerce industry in Malaysia is also driven by the government’s National E-commerce Strategic Roadmap initiatives which aim to increase internet accessibility to rural areas and improve e-wallets technologies. In 2020, 80% of the country's population were active internet users (about 26.7 million) and had a high rate of mobile phone penetration which was 83%. 


Government investment in the transport infrastructure

The Malaysian government has made significant investments in expanding and modernizing its road infrastructures throughout the country. As part of the Belt Road Initiative, Chinese state-owned and private companies have been implementing large-scale infrastructure and foreign direct investment (FDI) projects in Malaysia to promote greater connectivity between the country and mainland China. Chinese investments and construction contracts in peninsular Malaysia include multiple airports, ports, expressway, forest city, and the Malaysia-China Kuantan Industrial Park (MCKIP). In April 2019, Malaysia’s former prime minister Mahathir Mohamad sealed a new deal with China to build a freight and passenger railway that will link Malaysia's capital Kuala Lumpur to towns on its east and west coasts and will eventually connect to a deep sea port China is building on the country’s east coast.


Competitive Landscape

Malaysian freight and logistics market landscape is fragmented and is competitive, with a large number of domestic startups and international players. Some of the key players in the market are Tiong Nam Logistics, CEVA Logistics, Yusen Logistics, DHL, among others. In order to gain significant market share and serve the rising demand, the companies are adopting digitalization, and to appeal to cater to the large Muslim population, companies are obtaining Halal certification.

Recent Developments

In April 2021, Shell and digital road freight platform, Ezyhaul, have decided to forge partnerships to transform the Malaysian freight market. Shell having expertise in mobility solutions of over 60 years is partnering with Ezyhaul’s digital freight capabilities. To overcome the issues of manual booking of shipments, limited real-time visibility on delivery status, lack of reliable and consistent data for analysis and improvement, billing inaccuracies, and lack of data integration are some of the common challenges that they plan to solve.

In June 2021, ZeptoExpress, a logistics startup in Malaysia, raised their first 7-figure funding from Ficus Venture Capital a local private company that brands itself as the first Shariah Compliant VC in the region. ZeptoExpress’s started with ZeptoBike, where they transported mainly small packages like Lalamove or Grab. With this fresh funding, they’ll focus on growing and expanding to Vietnam.

Table of Contents





    1. 4.1 Current Market Scenario

    2. 4.2 Government Regulations and Initiative

    3. 4.3 Technological Trends

    4. 4.4 Brief on Key Routes and Transport Corrdidors

    5. 4.5 Insights on Halal Logistics

    6. 4.6 E-Commerce Logistics Market in Malaysia

    7. 4.7 Impact of COVID-19 on Road Freight Market in Malaysia


    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

    3. 5.3 Market Opportunities

    4. 5.4 Porter's Five Forces Analysis


    1. 6.1 By Destination

      1. 6.1.1 Domestic

      2. 6.1.2 International

    2. 6.2 By End Users

      1. 6.2.1 Manufacturing and Automotive

      2. 6.2.2 Oil and Gas, Mining and Quarrying

      3. 6.2.3 Agriculture, Fishing and Forestry

      4. 6.2.4 Construction

      5. 6.2.5 Dsirtibutive Trade (Wholesale and Retail Trade)

      6. 6.2.6 Pharmaceutical and Healthcare

      7. 6.2.7 Other End Users


    1. 7.1 Overview (Market Concentration Analysis and Major Player)

    2. 7.2 Company Profiles

      1. 7.2.1 DHL

      2. 7.2.2 CEVA Logistics

      3. 7.2.3 Pos Malaysia Bhd

      4. 7.2.4 Xin Hwa Holdings Berhad

      5. 7.2.5 Yusen Logistics

      6. 7.2.6 Agility Logistics

      7. 7.2.7 CJ Century Logistics Holdings Berhad

      8. 7.2.8 FedEx Corporation

      9. 7.2.9 DB Schenker

    3. *List Not Exhaustive

  9. 9. APPENDIX

    1. 9.1 Economic Statistics: Contribution of Transport Sector to Malaysia Economy

    2. 9.2 Trade Statistics: Imports and Exports

**Subject to Availability

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Frequently Asked Questions

The Malaysia Road Freight Transport Market market is studied from 2017 - 2026.

The Malaysia Road Freight Transport Market is growing at a CAGR of <4% over the next 5 years.

DHL, CEVA Logistics, Xin Hwa Holdings Berhad, Yusen Logistics, CJ Century Logistics Holdings Berhad are the major companies operating in Malaysia Road Freight Transport Market.

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