Malaysia Courier Service Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Global Courier Service Industry in Malaysia is segmented By Destination (Domestic, International), By Business (B2B (Business-to-Business), B2C (Business-to-Consumer)), By End-user (BFSI (Banking, Financial Services, and Insurance), wholesale and retail trade (Including e-commerce), Life Sciences/Healthcare, Industrial Manufacturing, Other End Users). The report offers market size and forecast for the Malaysia Courier, Express, and Parcel (CEP) Market in Value (USD Billion) for all the above segments.

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Courier Service in Malaysia Market Size

Malaysia Courier, Express, And Parcel (CEP) Market Summary
Study Period 2019-2028
Base Year For Estimation 2022
Market Size (2023) USD 1.32 Billion
Market Size (2028) USD 2.55 Billion
CAGR (2023 - 2028) 14.03 %
Market Concentration Low

Major Players

Malaysia Courier, Express, And Parcel (CEP) Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Courier Service in Malaysia Market Analysis

The Malaysian Courier, Express, and Parcel (CEP) Market size is expected to grow from USD 1.32 billion in 2023 to USD 2.55 billion by 2028, at a CAGR of 14.03% during the forecast period (2023-2028).

  • During the COVID-19 pandemic, delivery operations were not severely affected compared to other countries. Despite the global pandemic and an unexpected administration transition in 2020, the commercial environment for the CEP market remains promising, with e-commerce and pharmaceutical sales increasing significantly compared to pre-covid trends. Fast, efficient, and reliable order fulfillment is critical for sustaining customer satisfaction in express delivery, but it is also one of the company's most difficult tasks.
  • With revenue of over USD 6.3 billion in 2021, Malaysia ranked 35th among all e-commerce markets, ahead of Israel and behind Denmark. The Malaysian e-commerce market grew by 30% in 2021, contributing to a 15% global growth rate. Global e-commerce sales are anticipated to rise over the coming years, much like Malaysia's. Over the coming years, the global expansion will continue as new markets develop. East and Southeast Asia, with their expanding middle class and lagging offline infrastructure, will be the driving force behind this progress. Malaysia is even anticipated to beat the global average of 6% with an annual growth rate of 15% between 2021 and 2025.
  • In Malaysia, the courier, express, and parcel (CEP) market is expanding quickly with the nation's e-commerce sector, bringing in considerable profits for the sector. Online retailers and logistics operators face opportunities and challenges due to the exponential growth of the country's e-commerce sector. The CEP business is primarily driven by the expansion of e-commerce, but in the future, the need for perishables and the expansion of the nation's life sciences industry may also assist the expansion of express delivery.
  • To keep up with the five e-commerce trends in 2023, which include third-party logistics (3PL) services, direct-to-consumer (D2C) fulfilment, optimizing last-mile logistics, sustainability, and technology, the Malaysian logistics industry will need to look at developing its infrastructure and changing operating models.
  • A good picture for the business is also being created by technology improvements, such as the use of digital technologies with crowdsourcing delivery models. These technologies help service companies increase their overall operational effectiveness and successfully meet consumer needs. The market is expected to be further fueled by additional factors such as quick urbanization, increased consumer spending power, and considerable expansion in the manufacturing industry.

Courier Service in Malaysia Market Trends

This section covers the major market trends shaping the Malaysia CEP Market according to our research experts:

Growth in domestic courier services driving CEP market in Malaysia

After typically experiencing a rise in parcel volumes in 2022 due to the emergence of e-commerce nationally, Malaysia's courier and delivery firms anticipate a better result this year. One company, Ninja Van, was able to deliver 100 million packages as of July 2021, which can be attributed to the trend of Malaysians supporting local brands to aid businesses in recovering from the difficult previous two years. To improve its ability to support the expansion of regional SMEs (small and medium enterprises) and businesses.

Ninja Van concentrated its efforts in 2022 on adding up to 500 new employees, outfitting its sorting centers with automatic conveyors to boost efficiency, and expanding its services to include non-e-commerce sectors. Ninja Van has begun operating seven days a week throughout Malaysia. They have plans to diversify into new markets and offer new goods and services that will push their shippers to new heights and fuel their growth in the future. It has currently served up to 25,000 active consumer and SME users, exceeding its overall active user count in 2020 by almost 152%. It has also been able to deliver more than 12 million orders with twice as many active drivers as in 2020.

A Collection and Delivery Centre (PUDO) Infrastructure Network Plan is being developed by the Malaysian Communications and Multimedia Commission (MCMC) as a unified platform for local delivery locations. The initiative, which includes several industry partners, is separated into two phases, according to a statement released by MCMC today. The first stage is the consolidation of all local PUDO delivery points by different businesses under one roof, and the second stage will link the integrated platform with the online market.

As part of its expansion plans in Malaysia, a NEW player in the courier and logistics service industry, Flash Malaysia Express Sdn Bhd, hopes to open up 10,000 job possibilities. The St. Regis Hotel Kuala Lumpur hosted the company's national launch. The company is a commercial subsidiary of the Flash Group. Flash Express Malaysia, which at first only operated out of one hub in Klang, now formally serves over 30,000 deliveries every day across the nation from eight hubs in Peninsular Malaysia and one hub in each of Sabah and Sarawak.

Malaysia Courier, Express, and Parcel (CEP) Market trend - courier demand growth

Growth of e-commerce in Malaysia propelling CEP market

According to the Department of Statistics Malaysia, Malaysia's e-commerce revenue totalled USD 42.3 billion in the fourth quarter of 2021 (4Q21), up 4% every quarter and 18.3% on an annual basis. The overall performance of e-commerce revenue in 2021 was USD 241.2 Billion, up 21.8% from the previous year. The growth was led by the sub-sector of wholesale and retail commerce, which saw a gain of 50,575 people (or 2.7%), and was followed by the sub-sector of transportation and storage, which saw a gain of 13,507 people (or 4.2%).

E-commerce is a significant component of the development of the digital economy and a key catalyst for company growth, particularly for micro, small, and medium-sized firms (MSMEs), which are the engine of the economy of the country. The National E-Commerce Strategic Roadmap, which is driving Malaysia's aim to have an e-commerce market size of USD 240 billion by 2025, states that this is the first time that income from e-commerce transactions has broken the USD 210 USD barriers.

Opportunities and difficulties are both present in this new economy. For starters, companies and people can now reach beyond local borders and take advantage of a market that is becoming more global and borderless. However, it also implies that business owners who reject e-commerce run the danger of failing. The government has numerous programs and initiatives in place to assist MSMEs in starting their e-commerce journeys. To promote the adoption of e-commerce and e-payments, Belanjawan 2021's Go-eCommerce Onboarding and Shop Malaysia Online initiatives have been spearheaded by Malaysia Digital Economy Corporation (MDEC), the country's leading digital economy agency.

Malaysia Courier, Express, and Parcel (CEP) Market - Quarterly performance of e-commerce income, Malaysia, in RM Billion, 2020-2021

Courier Service in Malaysia Industry Overview

Malaysian Courier, Express, And Parcel (Cep) Market is fragmented in nature with a mix of global and local players, this makes the sector highly competitive. Some of the strong players of the country include Deutsche Post DHL, United Parcel Service Inc, City-Link Express, Pos Laju (Part of Pos Malaysia), GD Express Sdn Bhd. The surge in e-commerce sales has presented logistic companies with both opportunities and challenges in terms of speed, delivery, and other criteria. Global companies with a lot of money and assets have put a lot of money and assets into sophisticated storage and fulfilment centres, and they are reaping the rewards. Regional and local businesses, on the other hand, are developing better sector solutions to fulfil the demand. The major differentiating factors or services that differentiate Express vendors in this industry are the value-added services provided by service providers. In the competition between providers, price, reliability, delivery speed, and supply chain capacity are all variables. They're also striving to achieve and sustain a competitive advantage by adding value-added services to their product offering.

Courier Service in Malaysia Market Leaders

  1. Deutsche Post DHL

  2. United Parcel Service Inc.

  3. City-Link Express

  4. Pos Laju (Part of Pos Malaysia)

  5. GD Express Sdn Bhd

*Disclaimer: Major Players sorted in no particular order

Malaysia Courier, Express, And Parcel (CEP) Market Concentration
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Courier Service in Malaysia Market News

  • July 2022: Through the use of the bank's digital collection technology OCBC OneCollect, OCBC Bank (Malaysia) Berhad (OCBC Bank) and delivery firm J&T Express (Malaysia) Sdn Bhd (J&T) are working together to make "last mile" delivery safer and more practical for over 1,500 couriers in Malaysia. All J&T Express couriers around the country will gradually begin using the digital collection solution as part of the collaboration, which builds on prior accomplishments since the two first worked together in 2021. There will also be an in-store presence.
  • July 2022: The AirAsia Xpress by AirAsia Super App parcel delivery service has increased its offerings and will now provide door-to-door service between the Klang Valley and important cities around the nation, including Ipoh, Johor Bahru, Melaka, Penang, Kuching, and Kota Kinabalu. Users of the AirAsia Super App can now have their packages delivered throughout Peninsular Malaysia (from the Klang Valley to Ipoh, Johor Bahru, Melaka, and Penang, and vice versa) within 1-3 days.

Courier Service in Malaysia Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Government Regulations

    4. 4.4 Value Chain/Supply Chain Analysis

    5. 4.5 Insights on the Air Cargo Industry and Spotlight on Air Express Services

    6. 4.6 Brief on Door-to-door Express Services

    7. 4.7 Elaboration on Reverse Logistics

    8. 4.8 Impact of COVID-19 on the CEP Market

    9. 4.9 Market Dynamics

      1. 4.9.1 Market Drivers

      2. 4.9.2 Market Restraints/Challenges

      3. 4.9.3 Market Opportunities

    10. 4.10 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.10.1 Threat of New Entrants

      2. 4.10.2 Bargaining Power of Buyers/Consumers

      3. 4.10.3 Bargaining Power of Suppliers

      4. 4.10.4 Threat of Substitute Products

      5. 4.10.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Destinaion

      1. 5.1.1 Domestic

      2. 5.1.2 International

    2. 5.2 By Channel of Distribution

      1. 5.2.1 B2B (Business-to-Business)

      2. 5.2.2 B2C (Business-to-Consumer)

    3. 5.3 By End-User

      1. 5.3.1 BFSI (Banking, Financial Services, and Insurance)

      2. 5.3.2 Wholesale and Retail Trade (Including e-commerce)

      3. 5.3.3 Life Sciences/Healthcare

      4. 5.3.4 Industrial Manufacturing

      5. 5.3.5 Other End Users

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Pos Laju (Part of Pos Malaysia)

      2. 6.2.2 GD Express Sdn Bhd

      3. 6.2.3 City-Link Express (M) Sdn Bhd

      4. 6.2.4 Kangaroo Worldwide Express Sdn Bhd

      5. 6.2.5 Skynet Worldwide Sdn Bhd

      6. 6.2.6 ABX Express (M) Sdn Bhd (Part of Kerry Logistics Network Ltd)

      7. 6.2.7 Nationwide Express Courier Services Bhd

      8. 6.2.8 Deutsche Post DHL

      9. 6.2.9 FedEx Corporation

      10. 6.2.10 United Parcel Service Inc.

      11. 6.2.11 SF Express Co. Ltd

      12. 6.2.12 Ninja Van Malaysia

      13. 6.2.13 J&T Express International

      14. 6.2.14 Nationwide Express Courier Services Berhad

      15. 6.2.15 TA-Q-BIN

      16. 6.2.16 AirAsia Group*

    3. *List Not Exhaustive

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

    1. 8.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport, and the Storage Sector to Economy)

    2. 8.2 Insights on Capital Flows (Investments in the Transport and Storage Sector)

    3. 8.3 E-commerce and Consumer Spending-related Statistics

    4. 8.4 External Trade Statistics

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Courier Service in Malaysia Industry Segmentation

"Courier, Express and Parcel Services" is referred to as CEP. It refers to postal and logistical firms specializing in moving products that are relatively light in weight and volume, like letters, small packages, paperwork, or small objects. A complete background analysis of the Malaysia Courier, Express, and Parcel (CEP) Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

Malaysian Courier, Express, and Parcel (CEP) Market is segmented By Destination (Domestic, International), by business (B2B (Business-to-Business), B2C (Business-to-Consumer)), by End-user (BFSI (Banking, Financial Services, and Insurance), wholesale and retail trade (Including e-commerce), Life Sciences/Healthcare, Industrial Manufacturing, Other End Users). The report offers market size and forecast for the Malaysia Courier, Express, and Parcel (CEP) Market in Value (USD Billion) for all the above segments.

By Destinaion
Domestic
International
By Channel of Distribution
B2B (Business-to-Business)
B2C (Business-to-Consumer)
By End-User
BFSI (Banking, Financial Services, and Insurance)
Wholesale and Retail Trade (Including e-commerce)
Life Sciences/Healthcare
Industrial Manufacturing
Other End Users
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Courier Service in Malaysia Market Research FAQs

The Malaysia Courier, Express, And Parcel (CEP) Market size is expected to reach USD 1.32 billion in 2023 and grow at a CAGR of 14.03% to reach USD 2.55 billion by 2028.

In 2023, the Malaysia Courier, Express, And Parcel (CEP) Market size is expected to reach USD 1.32 billion.

Deutsche Post DHL, United Parcel Service Inc., City-Link Express, Pos Laju (Part of Pos Malaysia) and GD Express Sdn Bhd are the major companies operating in the Malaysia Courier, Express, And Parcel (CEP) Market.

Malaysia CEP Industry Report

Statistics for the 2023 Malaysia CEP market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Malaysia CEP analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Malaysia CEP Market Report Snapshots

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