Malaysia Freight Logistics Market by Functions (Freight Forwarding, Freight Transport, Warehousing, and Value-added Services and Others), and End Users (Manufacturing and Automotive, Oil and Gas, Mining and Quarrying, Agriculture, Fishing, and Forestry, Constructions, Distributive Trades, and Others) – Malaysia Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The Malaysia freight logistics market size was valued at USD 36 billion in 2020 and is anticipated to reach USD 54 billion by 2028, expanding at a CAGR of 3.8% during the forecast period, 2021–2028. The growth of the market is attributed to the Belt and Road Initiative, launched by China, which has sparked the growth of trade between neighboring nations, boosting Malaysia's logistics business.

Freight referred to any form of products, objects, or commodities that are delivered in bulk by air, surface, or sea/ocean transportation. The total process of controlling how resources are bought, stored, and delivered to their final destination is referred to as logistics. Malaysia’s logistics business has progressed in recent years. Companies are benefiting from the expansion of e-commerce in the country.

Due to the extremely high margins and increased demand, businesses are becoming more interested in developing sectors such as cold chain logistics, last-mile delivery services.

Malaysia has a trade-dependent economy that generates significant flows of commercial activity to and from global markets, particularly in the region. Supporting major industries such as oil, manufacturing, and gas is one that logistics is concerned about.

Market Trends, Drivers, Restraints, and Opportunities

• Growing e-commerce sector, as well as an increase in reverse logistics operations and trade agreements, the growing usage of IoT-enabled linked devices, and the increase of tech-driven logistics services are projected to propel the market expansion during the forecast period.
• Malaysia's government has made significant progress in developing and upgrading the country's infrastructure. The Malaysia Plan, a five-year centralized economic development plan, in which public sector infrastructure development receiving the majority of funding is estimated to push the market growth in the coming years.
• Malaysia's e-commerce boom is being fueled by a growing number of technologically literate middle-class consumers seeking excellent discounts and access to foreign brands.
• The East Coast Rail Link (ECRL) project, which can connect the important port of Klang on the Straits of Melaka to Kota Bharu in Malaysia's northeast, is the country’s leader expected to fuel the market growth during the forecast period.
• High cost of air transportation, as well as the significant import taxes imposed in various countries, are likely to restrict market expansion in the coming years.

Scope of the Report

The report on the Malaysia freight logistics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Malaysia Freight Logistics Market Segment Insights

Freight Forwarding segment is projected to account for a key market share

Based on functions, the Malaysia freight logistics market is divided into freight forwarding, freight transport, warehousing, and value-added services, and others. The freight forwarding segment is expected to account for a key share of the market during the forecast period owing to the behalf of shippers, freight forwarders are responsible for organizing international transportation and customs clearance. Shippers can have a significant logistical burden without forwarders, which can be adverse to the global market's overall productivity.

Manufacturing, oil, and gas segment is expected to expand at a significant pace

On the basis of end-users, the market is segmented into manufacturing and automotive, oil and gas, mining and quarrying, agriculture, fishing, and forestry, constructions, distributive trades, and others. The manufacturing, oil, and gas segment is expected to constitute a key share of the market in the coming years.

Segments

Segments Covered in the Report
Malaysia freight logistics market has been segmented on the basis of
Functions

• Freight Forwarding
• Freight Transport
• Warehousing
• Value-added Services
• Others

End Users

• Manufacturing and Automotive
• Oil and Gas
• Mining and Quarrying
• Agriculture, Fishing, and Forestry
• Constructions
• Distributive Trades
• Others

Key Players

• CEVA Logistics
• City-Link Express (M) Sdn Bhd
• CJ Century Logistics Holdings Berhad
• Complete Logistic Services Bhd
• Deutsche Post DHL Group
• GD Express Carrier Berhad
• Kerry Logistics Network Limited
• KTM Berhad
• MMC Corporation Berhad
• Nippon Express Co. Ltd
• PKT Logistics Group Sdn Bhd
• Pos Malaysia Bhd
• Tiong Nam Logistics Holdings Bhd
• TransOcean Holdings Bhd
• Xin Hwa Holdings Berhad

Competitive Landscape

Key players competing in the Malaysia freight logistics market are CEVA Logistics; City-Link Express (M) Sdn Bhd; CJ Century Logistics Holdings Berhad; Complete Logistic Services Bhd; Deutsche Post DHL Group; GD Express Carrier Berhad; Kerry Logistics Network Limited; KTM Berhad; MMC Corporation Berhad; Nippon Express Co. Ltd; PKT Logistics Group Sdn Bhd; Pos Malaysia Bhd; Tiong Nam Logistics Holdings Bhd; TransOcean Holdings Bhd; and Xin Hwa Holdings Berhad. Some of these players are adopting several market strategies such as acquisitions, mergers, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares. For instance,

In December 2020, GD Express Carrier Bhd (GDEX) and Tasco Bhd signed a memorandum of understanding (MoU) to improve logistics delivery services between Malaysian end users and domestic and foreign destinations.

In December 2020, DHL Express and Malaysia's Aerodyne Group signed a cooperative agreement to evaluate the economic potential of drone technology and create business models for its application in life sciences and marine supply chains.