Integrated Logistic Services - MIDA | Malaysian Investment Development Authority
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Integrated Logistics Services

Logistics act as service enabler for all forms of trade and distribution activities, showing consistent growth over the years.


Integrated logistics services (ILS) involve companies providing end-to-end logistics, including multimodal transportation (air, ocean, road, rail), warehousing, and value-added services, forming a comprehensive logistics solution.


Main activities involved are:

  • Warehousing
  • Transportation
  • Freight Forwarding
  • Distribution
  • Other value added services (i.e., product assembly/installation, consolidation, procurement, quality control, and supply chain management).


Approved Projects

RM874.2 bil

Total Approved Investments in 2022


Job Opportunities

For more statistics, please click here.

Government Support

MIDA is committed to nurture the growth of integrated logistics businesses through the ILS incentives and IILS status offerings. By 2022, over 100 ILS projects were approved, mainly by Malaysian-based firms.


5 years

Pioneer Status incentive of the
statutory income for 5 years



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



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:



Units of Commercial Vehicles


5,000 m2

Warehouse Space


The rapid expansion of e-commerce significantly influences the Malaysian logistics sector, forces firms to undergo digitalisation, creating seamless e-fulfillment centers across the country, and efficiently serving the global supply chain activities.


Modern supply chains rely heavily on emerging technologies that integrate high-tech ICT and IoT systems. With a 68% year-on-year surge in e-commerce during 2021, Malaysia stands as an appealing investment destination in Southeast Asia.

Cold Chain Logistics

Cold chain logistics in Malaysia is a growing industry with a positive outlook. It’s driven by strong growth enablers such as an increase in freight volumes, improving logistics infrastructure, and structural growth in e-commerce.

Cold chain logistics is growing post-pandemic, with smart facilities and refrigeration systems being developed.

The industry is also witnessing more and more investments from large logistics providers, especially in niches like dangerous goods, including development of mega-sized smart warehouses.

Future Trend of Logistics

There are plentiful investment opportunities as the industry concentrates on enhancing the capability and efficiency of logistics service providers.

This involves expanding and upgrading to cutting-edge technologies like Warehouse Management Systems (WMS) with integrated IoT systems, as well as adopting smart logistics for improved competitiveness.





Software Systems


Our Success Stories

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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.