KUALA LUMPUR (Jan 6): The Malaysian logistics industry is expected to grow 10.3% to RM129.93 billion in 2012 as compared to an estimated RM117.8 billion a year ago, due to strong government support on logistics-related development and economic growth fuelled by foreign investments in the country, according to Frost & Sullivan.
Its vice president, Transportation & Logistics Practice, Asia Pacific and country head for Malaysia Gopal R said Malaysia’s strategic advantage due its geographical location and focus on improving supply chain efficiency would also drive growth in the logistics industry.
In a statement Friday, he said that external trade for Malaysia was expected to increase 5.9% to RM1.32 trillion in 2012 as compared to RM1.24 trillion in 2011.
“Growth of the country’s external trade signifies the growth of the transportation and logistics industry especially for import & export forwarding, air freight and ocean freight-related businesses,” said Gopal.
He said foreign direct investments (FDIs) surged to RM21.3 billion in the first half of 2011 as compared to RM12.1 billion in the corresponding period in 2010, reflecting the growing investors’ confidence following the government’s initiatives to stimulate economic growth.
“The introduction of several initiatives such as the Government Transformation Program and the Economic Transformation Program provided a conducive business environment for the logistics market to grow,” he said.
Gopal said Malaysia’s major trading partners were Asian countries, which are expected to experience stable economic growth.
He also said that electrical & electronic products, chemicals, palm oil, machinery, appliances & parts are key trading commodities for Malaysia.
“However, share of trade with Japan and Thailand is expected to shrink due to supply chain disruptions and production slow down following disasters in the respective countries,” he said.
He added that logistics service providers which are able to leverage their integrated network to offer alternative solutions and help clients maintain the distribution flow, can tap into the growth opportunities from new clients.
The Malaysian logistics industry is forecast to grow at a compound annual growth rate (CAGR) of 11.6% to reach RM203.71 billion in 2016, said Gopal.
Its vice president, Transportation & Logistics Practice, Asia Pacific and country head for Malaysia Gopal R said Malaysia’s strategic advantage due its geographical location and focus on improving supply chain efficiency would also drive growth in the logistics industry.
In a statement Friday, he said that external trade for Malaysia was expected to increase 5.9% to RM1.32 trillion in 2012 as compared to RM1.24 trillion in 2011.
“Growth of the country’s external trade signifies the growth of the transportation and logistics industry especially for import & export forwarding, air freight and ocean freight-related businesses,” said Gopal.
He said foreign direct investments (FDIs) surged to RM21.3 billion in the first half of 2011 as compared to RM12.1 billion in the corresponding period in 2010, reflecting the growing investors’ confidence following the government’s initiatives to stimulate economic growth.
“The introduction of several initiatives such as the Government Transformation Program and the Economic Transformation Program provided a conducive business environment for the logistics market to grow,” he said.
Gopal said Malaysia’s major trading partners were Asian countries, which are expected to experience stable economic growth.
He also said that electrical & electronic products, chemicals, palm oil, machinery, appliances & parts are key trading commodities for Malaysia.
“However, share of trade with Japan and Thailand is expected to shrink due to supply chain disruptions and production slow down following disasters in the respective countries,” he said.
He added that logistics service providers which are able to leverage their integrated network to offer alternative solutions and help clients maintain the distribution flow, can tap into the growth opportunities from new clients.
The Malaysian logistics industry is forecast to grow at a compound annual growth rate (CAGR) of 11.6% to reach RM203.71 billion in 2016, said Gopal.
