Seminar on Investment Opportunities in the e-Commerce Fulfilment Industry 2019

MIDA Insights - Events

Malaysian Investment Development Authority (MIDA) in collaboration with Ministry of International Trade and Industry (MITI) and the Malaysia Digital Economy Corporation (MDEC) organised the “Investment Opportunities in the e-Commerce Fulfilment Industry Seminar 2019” on 10 July 2019 in MITI.

In light of the projected double-digit growth of e-Commerce in the region, Malaysia is ready to take part in transforming the existing digital landscape into a bright digital future. The Government through MIDA has expanded the logistics incentive scheme by introducing the second round Integrated Logistics Services (ILS) incentive to encourage logistics companies to adopt technology in their operations and to position themselves as regional e-Fulfilment hub providers in Malaysia. From 2017 until March 2019, MIDA has approved eight (8) e-Fulfilment projects in which seven of these projects are locally owned,” said YB Dr. Ong Kian Ming, Deputy Minister of the International Trade and Industry. The Seminar, which was an initiative of the National e-Commerce Council (NeCC) aimed to position Malaysia as an “e-Fulfilment Hub”, focusing on leveraging greater integration across the industry to support its rapid growth in the country.

YB Dr. Ong in his speech highlighted that the joint venture between Malaysia Airports Holdings Berhad (MAHB) with Alibaba’s logistics arm, Cainiao Smart Logistics Network (Hong Kong) Ltd, to develop a regional e-Commerce and logistics hub at KLIA, is progressing well. He urged local logistics players to gear up and take advantage of the vast growth opportunities.

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Companies are also urged to invest and adopt cutting-edge technologies, and to explore potentially disruptive technologies to create new ways of business, as well as to lower cost while enhancing overall efficiency.

Mr. Arham Abdul Rahman, Deputy Chief Executive Officer of MIDA in his welcoming remarks said that MIDA takes the helm in developing the nation’s e-Fulfilment hub, under the Malaysian National E-Commerce Strategic Roadmap (NESR). The organisation focuses on improving the capability and efficiency of logistics service providers in operating e-Fulfilment facilities to cater to the diverse needs of the online shopping market.

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MIDA continuously encourage logistics companies to invest in physical and virtual ICT systems, such as Warehouse Management Systems (WMS) and Smart Logistics to enable them to undertake complex activities. MIDA has also taken the initiative alongside MDEC to enhance talent development in the e-Commerce and e-fulfilment industries. Some of the measures in place include improving industry readiness of new graduates and encouraging SMEs to provide training for employees. To generate high-income jobs for Malaysians, these measures will eliminate labour market mismatch and maximise productivity.

Dato’ Mathialakan Chelliah, acting Chairman of MDEC highlighted that e-Commerce is a key tenet of the digital economy, providing far-reaching business opportunities and societal upliftment opportunities for Malaysia. MDEC applauds the continuous engagement of this type borne out of a collaboration between the public and private sectors, which will boost the development of the country's e-Commerce ecosystem and strengthen the platform from which SMEs can expand into wider markets.

The event was well attended by over 350 participants from various fields, including logistics providers, e-Commerce players and potential investors. It featured panel sessions ranging from government agencies (MIDA, MDEC, MITI and Customs) and industry players (GDEX, DHL, Urban Fox, Cainiao, CJ Century, Logistics Worldwide Express, Easy Parcel and iStoreiSend).

The event also witnessed the Memorandum of Understanding (MoU) exchange between MIDA and DHL Express. This collaboration is an initiative to attract DHL’s potential MNC clients to look at Malaysia as an investment destination either for relocation or to centralise their operational function (regional operations) as well as business expansions. 

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Last Updated : Friday 25th September 2020