Malaysia Freight Logistics Market Size is valued at USD 27.5 Billion in 2022. The Freight Logistics industry is projected to grow from USD 28.93 Billion in 2023 to USD 43.39 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.20% during the forecast period (2024 - 2032). The rising e-commerce sector, a growing number of technologically literate middle-class consumers, and developing infrastructure are the main market drivers anticipated to propel the Freight Logistics market in Malaysia.
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
The freight logistics market CAGR is propelled by the strength of Malaysia's manufacturing sector and the increasing volume of cross-border trade play a crucial role in shaping the demand for logistics services and infrastructure. The strong manufacturing industry in the country boosts the demand for freight logistics services to transport raw materials, finished goods, and components across international borders. The manufacturing sector includes different sectors like automotive, electronics, machinery, and chemicals that contribute to GDP growth and employment. The requirement for efficient supply chain management and timely delivery of goods to the international and domestic markets is of prime importance for manufacturing companies to remain competitive. The close presence of the country to major shipping routes and well-developed transportation infrastructure, like airports, road networks, and ports and road networks, help the movement of goods between Asia-Pacific countries and more; therefore, the country plays a crucial role in cross-border transportation.
Furthermore, the growth in cross-border trade is boosted by different factors like trade liberalization initiatives, expansion of regional economic blocs, and free trade agreements. Furthermore, the rising e-commerce and digital trade increase the demand for freight logistics in Malaysia. The growth of online shopping platforms and rising consumer preferences for purchasing goods online have led to the growth of parcel deliveries and last-mile logistics operations. Freight logistics providers have an important role in managing the transportation, distribution, and warehousing of e-commerce goods, ensuring timely delivery and customer satisfaction. There is an increase in investment for infrastructure upgrades, technology adoption, and supply chain optimization initiatives in order to meet the rising demand for freight logistics services. Additionally, the adoption of IoT, data analytics, and blockchain helps logistics providers improve operational efficiency, optimize route planning and vehicle utilization, and track shipments in real-time. Thus driving the Freight Logistics market revenue.
The Malaysia Freight Logistics market segmentation, based on function, includes Freight Forwarding, Freight Transport, Warehousing, Value-Added Services, and Others. The freight forwarding segment dominates the market as the freight forwarders are responsible for organizing international transportation and customs clearance. Strategic partnership with technology integration and carriers further strengthens its spot in the market. Further, the value-added services category is the second most dominant as it offers additional benefits like labeling, packaging, customs clearance, and cargo tracking. Also, the rising demand for convenience and efficiency in logistics drives the strong growth of this segment.
Figure 1: Malaysia Freight Logistics Market, by Function, 2023 & 2032 (USD Billion)
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
The Malaysia Freight Logistics market segmentation, based on end users, includes Manufacturing and Automotive, Oil and Gas, Mining and Quarrying, Agriculture, Fishing, Forestry, Construction, Distributive Trades, and Others. The manufacturing and automotive segment dominates the market due to their demand for transportation services to move components, raw materials, and finished products throughout the country. The country is a prime player in the regional automotive industry, driving the demand for freight logistics. Their constant requirement for reliable, efficient, and cost-effective logistic solutions strengthens their dominance within the Malaysian market.
Malaysia has a strategic location that makes it a major trade hub, connecting the East and West. The country has a strong emphasis on export-oriented industries, including automotive, electronics, and palm oil, driving the demand for freight and logistics services. The logistics in Malaysia has included several new technologies owing to the growth of industries like food & beverages and consumer goods. The seamless connection of important elements of the logistics supply chain can be attained with the help of cloud-based platforms. Further, the fast expansion of e-commerce has transformed the logistics landscape in Malaysia. The online shopping platforms and the growth in demand for efficient last-mile delivery, fulfillment services, and warehousing. Moreover, Malaysia has made significant investments in infrastructure development, including ports, road networks, and airports. These developments have enhanced logistics and connectivity efficiency, therefore attracting international logistics players to maintain their presence in the country.
Leading market players are investing heavily in the research and development in order to grow their product lines, which will help the Freight Logistics market grow even more. Market players are also undertaking a variety of strategic activities to broaden their footprint, with important market developments inclusive of mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with other organizations. To expand and sustain in a more competitive and rising market climate, the Freight Logistics industry must offer cost-effective items.
Major players in the Freight Logistics market are trying to increase market demand by investing in research and development operations includes CEVA Logistics; City-Link Express (M) Sdn Bhd; Complete Logistic Services Bhd; CJ Century Logistics Holdings Berhad; Deutsche Post DHL Group; GD Express Carrier Berhad; MMC Corporation Berhad; Kerry Logistics Network Limited; KTM Berhad; Nippon Express Co. Ltd.
City-Link Express (M) Sdn Bhd
CJ Century Logistics Holdings Berhad
Complete Logistic Services Bhd
Deutsche Post DHL Group
Kerry Logistics Network Limited
KTM Berhad
MMC Corporation Berhad
Nippon Express Co. Ltd
In December 2020, a cooperative framework was in place between Aerodyne Group of Malaysia and DHL Express to investigate the commercial feasibility of drone technology and come up with related business applications in life sciences and marine supply chains.
In January 2021, the preliminary agreement between ASEAN countries (Central/AP-1) and GD Express Carrier Bhd (GDEX) was also signed with Tasco Bhd aiming to develop the logistics delivery from Malaysian end user to domestic and overseas destinations and vice versa.
In a significant move, Masama Sdn Bhd in May 2022 awarded SCIB a RM 38million (USD8.61 million) contract for engineering, procurement, construction and commissioning works for the company. This project involved connecting Baleh Bridge, RH Belaja, Ng Benin, SK Ng Pelagus, Pelagus Resort in Kapit Sarawak was completed successfully in March 2023.
Further, in April 2023, it was reported that the Malaysian government intends to build a port at the cost of RM 28 billion (USD 6.34 billion), the completion of which is targeted for the year 2060. The goal of this initiative is to expand the existing container and conventional cargo handling capacity within Port Klang to 36 million TEUs in the year 2060 compared to 13.2 million TEUs in the year 2022. 3 is the last significant rail system corridor that forms part of the Kuala Lumpur urban rail system. The length of the line is 50.8 km extending around subsurface portion of the City of Kuala Lumpur.
It was first initiated in early 2023, and the overall work completion is scheduled for the year 2030, although the facilities for phase one operations are expected to start by 2028. Through an infrastructure project of the double-track railway East Coast Rail Link (ECRL), the construction of the railway started in 2017 and 20 stations, which contained fourteen passenger stations, five combined passenger- freight stations and one only freight station, have been established.
By 2022, a 20 billion investment was made into development by Petronas in Johor RAPID project, which among other things, by 2030 will create the oil refining and storage hub for the local needs of refined petroleum products. Together with the mentioned, nearly USD 11 billion investment was made for on and offshore related units. The project is designed to produce about 279000 bpd. It will also be the first oil refinery in the Malaysia which will produce Euro V diesel and gasoline with lesser level of carbons emissions.
Freight Forwarding
Freight Transport
Warehousing
Value-Added Services
Others
Manufacturing and Automotive
Oil and Gas
Mining and Quarrying
Agriculture
Fishing
Forestry
Construction
Distributive Trades
Others
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 27.5 Billion |
| Market Size 2023 | USD 28.93 Billion |
| Market Size 2032 | USD 43.39 Billion |
| Compound Annual Growth Rate (CAGR) | 5.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Function, End User and Region |
| Countries Covered | Malaysia |
| Key Companies Profiled | 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. |
| Key Market Opportunities | The advancement and integration of digital technologies and data analytics to optimize supply chain operations. |
| Key Market Dynamics | Growing infrastructural developments. The fast expansion of e-commerce. |
Frequently Asked Questions (FAQ) :
The Malaysia Freight Logistics market size was valued at USD 82.93 Billion in 2023.
The market is projected to rise at a CAGR of 5.20% during the forecast period, 2024-2032.
The key players in the 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.
The freight forwarding category dominated the market in 2023.
The manufacturing & automotive category had the largest share of the market.
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