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Integrated Logistics Services

Logistics is the service enabler for all forms of trade and distribution activities and has seen positive growth over the years. Integrated logistics services (ILS) refers to a company that performs a variety of end-to-end logistics-related service activities like air, ocean, road and rail transportation, warehousing and other value-added services that make up a total logistics services package.

 

Main activities involved are:

  • Warehousing
  • Transportation
  • Freight Forwarding
  • Distribution
  • Other value added services (e.g. break bulking, palletising, labelling, etc)

Government Support

MIDA supports the growth of companies undertaking integrated logistics services by offering the ILS incentive and International ILS (IILS) status. As at 2019, MIDA had approved over 93 ILS projects where majority of the applicants were Malaysian-based companies.

 

5 years

Pioneer Status incentive of the
statutory income for 5 years

 

60%

Investment tax allowance on the
qualifying CAPEX incurred
within a period of 5 years.
This allowance can be offset
against 70% of its statutory income
for each assessment year.

ILS Eligibility Criteria

 

60%

Locally incorporated

 

3 + 1

Principal Activities

Warehousing, transportation, freight forwarding
and at least distribution/ supply chain management
or other related value-added logistics services/activities

Own the following minimum infrastructure:

 

20

Units of Commercial Vehicles

 

5,000 m2

Warehouse Space

E-Fulfilment

The explosive growth of e-Commerce encourages logistic companies in Malaysia to go through a series of digital evolution in their operations to form seamless e-fulfilment hubs in the country to serve global supply chain activities efficiently. In 2019, a total of 8 e-fulfilment projects were approved.

Cold Chain Logistics

Cold chain logistics involves the transportation and storage of temperature-sensitive products through thermal and refrigerated packaging methods.

MIDA encourages logistic companies to diversify into cold chain logistics. Over the years, MIDA has assisted cold chain logistic companies such as ICCL, CCN, Saddad Resources Sdn Bhd and Gold Cold Logistics Sdn Bhd to grow their business extensively.

Future Trend of Logistics

In light of the explosive growth of Industry 4.0 technologies in the region,  Malaysia’s logistics industry is well-positioned to capitalise on the evolving digital landscape.

Today’s online consumers not only have high expectations on the quality and flexibility of services, they also demand unique and personalised options. Hence, going digital is not an option for the logistics industry. Many logistic companies are now applying the elements of automation, robotics, Internet of Things (IOT), Big Data Analytics, cloud-based computing and in-house software systems in their daily operations to stay ahead and meet the demands of their domestic and global clients.

Automation

 

Robotics

 

In-house
Software Systems

 

Our Success Stories

Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Find out more about the policies, incentives and facilities in the logistics sub-sector.
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