Gaps and misses in billion-ringgit logistics industry

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While e-commerce has propelled the logistics industry in cities and towns, many rural areas remain under-served.

Big 3PL players are driving the expansion of markets for businesses, generating job opportunities for riders and drivers, and offering customers the convenience of online shopping.

“These platforms helped us tap into the international market. Now our products have reached 24 stores worldwide,” he said. Amir is among the 100,000 p-hailing riders in Malaysia, most of whom are under the age of 30, who deliver online orders.“As a student, I have many expenses. This enables me to earn a side income that I can spend on fuel, books for my studies and food,” he told FMT Business.Third party logistics play a crucial role in bolstering the economy by facilitating e-commerce, fostering connections between sellers and customers, and unleashing economic opportunities, particularly for rural communities.

Estimates by data gathering and visualisation service provider Statista show that the 3PL market in Malaysia is likely to amount to RM18.2 billion this year and will rise to RM20.2 billion by 2027, for an annual growth rate of 2.67%. The source, who declined to be named, cited areas away from towns and cities in Sabah and Sarawak that remain under-served because of inadequate infrastructure.For avid online shopper Marina Noordin who lives in Seremban, getting what she wants is just a few clicks away.

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