Market Trends of Malaysia Courier, Express, And Parcel (CEP) Industry
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.
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.
