Malaysia Courier, Express, and Parcel (CEP) Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Malaysia Courier, Express, and Parcel (CEP) Market Analysis

The Malaysia Courier, Express, and Parcel (CEP) Market size is estimated at 1.68 billion USD in 2025, and is expected to reach 2.24 billion USD by 2030, growing at a CAGR of 5.98% during the forecast period (2025-2030).

The Malaysian courier market demonstrates robust development through its regulatory framework and infrastructure investments. With 120 parcel operator licenses issued compared to Indonesia's 30 and Thailand's 37 licenses in 2022, Malaysia maintains a highly competitive market environment. The Malaysian government has demonstrated its commitment to infrastructure development by investing USD 20.43 billion across 7,615 projects in 2023, significantly enhancing the logistics network's capability and efficiency. This comprehensive approach to infrastructure development includes road maintenance, new connectivity routes, and strategic transportation hubs that strengthen the foundation of the courier industry.

The market is witnessing a significant transformation in cross-border operations and international connectivity. Cross-border sales constitute approximately 44% of total e-commerce transactions, highlighting Malaysia's strong position as a regional logistics hub. In June 2024, Malaysia Airports Holdings Berhad (MAHB) signed a strategic Memorandum of Understanding with China Henan Aviation Group Co., Ltd (CHAGC) to enhance air cargo connectivity between Malaysia and China, particularly between Zhengzhou Xinzheng International Airport and Kuala Lumpur International Airport (KUL). This partnership is particularly significant as KUL currently handles around 700,000 metric tonnes of cargo annually and accommodates 21 scheduled freighters serving 40 countries.

The industry is experiencing a notable shift toward sustainable logistics solutions and technological innovation. In February 2024, FedEx Express marked a significant milestone by completing the first zero-emission cross-border delivery from Malaysia to Singapore, covering 406 kilometers with a single charge in Johor. This achievement, recognized by the Malaysia Book of Records, demonstrated a reduction of approximately 100 kg in CO2 emissions compared to traditional diesel vans. DHL Express has also embraced sustainable practices by deploying six electric vehicles in 2022, with plans to expand its electric fleet to 61 vehicles serving Malaysia, demonstrating the industry's commitment to environmental sustainability.

The market is being reshaped by strategic infrastructure developments and technological advancements. In May 2024, the government announced the National Semiconductor Strategy, allocating USD 5.3 billion in financial support and planning to train 60,000 semiconductor engineers, which will significantly impact logistics operations for high-value technology components. The ongoing development of the East Coast Railway Line (ECRL), scheduled for completion in 2026, represents a transformative project that will substantially reduce shipping times between Malaysia's east and west coasts. These infrastructure improvements are complemented by the expansion of logistics networks, exemplified by Best's growth to over 100 last-mile service stations and seven sorting centers across Malaysia, enhancing the industry's operational capabilities.

Malaysia Courier, Express, and Parcel (CEP) Market Trends

Malaysia's transportation and storage sector experienced 33.42% YoY growth in 2022, despite USD 7.25 million FDI deficit

• The Belt and Road Initiative is driving Malaysia's infrastructure growth. The East Coast Rail Link (ECRL) seeks to improve connectivity between Kelantan, Terengganu, and Pahang in the East Coast with Negeri Sembilan, Selangor, and Putrajaya in the West Coast. These areas currently lack complete railway connections. The ECRL is forecasted to boost Malaysia's economic growth by up to 2.7%. Furthermore, two decades after its construction, Malaysia's economic growth is expected to reach 4.6%. The ECRL project is set to finish by December 2026 and is expected to start operating in January 2027.
• The MRT3 is the last critical route to complete the Kuala Lumpur urban rail network; the line is 50.8 km long and runs around Kuala Lumpur's outskirts. Its construction began in early 2023 and is slated for full completion by 2030, while operations for the first phase are anticipated to commence in 2028. Through East Coast Rail Link (ECRL), a double-track railway linking infrastructure project, which includes 20 stations, began in 2017, with 14 passenger stations, five combined passenger and freight stations, and one freight station.

Elimination of Diesel subsidies under discussions, in order to align retail fuel prices to align with market rates

• Starting in June 2024, Malaysia plans to eliminate diesel subsidies, allowing retail prices to align with the market rate of MYR 3.35 (USD 0.75) per litre, marking a 55% increase from MYR 2.15 (USD 0.48). Despite potential political consequences, this change is projected to have minimal impact on the country's inflation rate. In 2023, diesel subsidies amounted to MYR 14.5 billion (USD 3.28 billion), and the government anticipates saving approximately MYR 4 billion (USD 0.90 billion) annually through this Subsidy Rationalization. Diesel subsidies in the country amount to MYR 1 billion (USD 0.22 billion) monthly, with daily losses from leaks totaling MYR 4.5 million (USD 1.02 million).
• Diesel prices in Malaysia surged by over 50% in June 2024 as part of Prime Minister Anwar Ibrahim's efforts to reform the country's long-standing fuel subsidy system. The restructuring aimed to alleviate pressure on national finances by eliminating universal energy subsidies and focusing assistance on those most in need. This move also aims to address issues like the smuggling of subsidized diesel to neighboring countries, where it fetches higher prices.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• Malaysia is expected to hit the aged nation status by 2044, when 14% of the population aged 65 and above
• Malaysia rolls out the New Industrial Master Plan 2030 to stimulate development of manufacturing sector
• The oil and gas industry and manufacturing are the major industries contributing to GDP growth
• Rising input and output costs, material shortages, and energy and fuel price fluctuations driving rates
• E-commerce is projected to register a CAGR of 13.26% during 2023-27, fueled by rising internet and smartphone use
• The government announced the National Semiconductor Strategy and aims to make Malaysia a global chip hub
• Malaysia anticipates exports of electrical and electronic components to generate USD 112.22 billion by 2025, fueled by high investments in the manufacturing sector
• The government aims to produce 2.22 million tonnes of white rice in 2028, to reduce reliance on agricultural imports
• Malaysia ranked 26th in the Logistic Performance Index in 2023, due to enhanced infrastructure and freight volumes
• Malaysia invests USD 20.43 billion in 7,615 infrastructure projects in 2023, focusing on rural development and economic growth

Segment Analysis: By Destination

Domestic Segment in Malaysia CEP Market

The domestic segment dominates the Malaysian courier, express, and parcel (CEP) market, accounting for approximately 81% of the total market volume in 2024. This significant market share is driven by the country's thriving e-commerce landscape and robust domestic delivery infrastructure. The segment's strong performance is supported by major players like Pos Malaysia, which operates over 3,800 retail points and 662 post offices, delivering around 390,000 parcels daily across Malaysia. The domestic CEP market has been further strengthened by strategic partnerships and infrastructure developments, such as DHL Express's expansion of its Johor Bahru Gateway within the Senai Airport City industrial park, featuring a high-speed conveyor system capable of sorting up to 1,900 shipments per hour. Additionally, the implementation of innovative solutions like parcel lockers at RapidKL Light Rail Transit stations and the establishment of collection points across major urban areas has enhanced the accessibility and efficiency of domestic deliveries.

International Segment in Malaysia CEP Market

The international segment of Malaysia's CEP market is projected to experience robust growth between 2024 and 2029, with an expected growth rate of approximately 6% annually. This growth is primarily driven by Malaysia's strategic position as a key logistics hub in Southeast Asia and its increasing cross-border e-commerce activities. The segment's expansion is supported by significant infrastructure developments and strategic initiatives, such as the Digital Free Trade Zone (DFTZ), which aims to streamline cross-border e-commerce activities and expand global market opportunities. Major international players are actively investing in the segment, as evidenced by FedEx Express's landmark electric vehicle delivery service between Malaysia and Singapore, demonstrating the industry's commitment to sustainable cross-border operations. The segment's growth is further bolstered by partnerships between local and international courier companies, enhanced air cargo connectivity agreements, and the development of efficient customs clearance processes to facilitate smoother international shipments.

Segment Analysis: By Speed of Delivery

Non-Express Segment in Malaysian CEP Market

The non-express segment dominates the Malaysian courier, express, and parcel (CEP) market, commanding approximately 76% market share in 2024. This segment's prominence is driven by cost-conscious customers who prioritize economical shipping options over speed. Pos Malaysia, a major player in this segment, has consistently achieved above 90% of their Service Level Agreement (SLA) delivery commitments, with parcel delivery reaching 92% of delivery commitments in 2024. The segment has been strengthened by strategic expansions, such as Ninja Van Malaysia's establishment of its largest warehouse in Shah Alam, covering 260,000 sq. ft. to support increasing volume and enhance support for local SMEs. Additionally, AirAsia Xpress's introduction of domestic delivery services offering affordable rates between eastern and western Malaysia has further solidified the non-express segment's market position.

Express Segment in Malaysian CEP Market

The express delivery segment is experiencing rapid growth in the Malaysian CEP market, with a projected growth rate of approximately 7% from 2024 to 2029. This growth is primarily driven by the increasing demand for time-sensitive deliveries and the expansion of e-commerce platforms requiring rapid fulfillment services. Major global express delivery firms are actively expanding their operations in Malaysia, with companies like DHL Express operating six gateways, 21 service centers, and 185 retail points of sale. The segment's growth is further supported by innovative services like Teleport Pink, launched by Capital A's logistics division, offering next-day international parcel delivery services from Kuala Lumpur to Singapore at competitive rates. Additionally, Cainiao Network's establishment of an intelligent warehouse network across Southeast Asia, including Malaysia, has enhanced the express delivery infrastructure and capabilities in the region.

Segment Analysis: By Model

Business-to-Business (B2B) Segment in Malaysian CEP Market

The Business-to-Business (B2B) segment dominates the Malaysian courier, express, and parcel market, commanding approximately 37% of the total market value in 2024. The segment's strong position is primarily driven by Malaysia's robust manufacturing sector and its role as a manufacturing base for global companies like Dell and Intel that ship large quantities of products internationally. The Malaysian government's Digital Free Trade Zone (DFTZ) initiative has been instrumental in stimulating growth in this segment by establishing KLIA Aeropolis as a strategic logistics center and positioning Malaysia as a regional e-commerce fulfillment hub. The B2B segment particularly benefits from the high volume of cross-border trade, with Malaysia serving as a crucial link in global supply chains. Additionally, the government's focus on supporting small and medium enterprises (SMEs) in leveraging e-commerce platforms has further strengthened the B2B segment's market position.

Business-to-Consumer (B2C) Segment in Malaysian CEP Market

The Business-to-Consumer (B2C) segment is experiencing the most rapid growth in the Malaysian CEP market, with projections indicating an impressive growth rate of approximately 8% from 2024 to 2029. This remarkable growth is primarily fueled by the increasing adoption of e-commerce platforms and changing consumer preferences toward online shopping. The Malaysian government's recognition of e-commerce's significance in promoting B2C transactions has led to various supportive initiatives and policies. The country's high internet penetration rate of 89%, among the highest in Southeast Asia, coupled with a growing population of digitally savvy consumers, continues to drive B2C delivery demand. The availability of customized payment options and the success of major e-commerce platforms like Shopee and Lazada have further accelerated the segment's growth. Additionally, the implementation of advanced delivery technologies and the expansion of last-mile delivery networks by major courier companies have significantly improved B2C service efficiency.

Remaining Segments in Model-Based Segmentation

The Consumer-to-Consumer (C2C) segment represents a significant portion of the Malaysian CEP market, primarily driven by the growing secondhand clothing industry and personal item shipping. The segment has gained prominence through popular resale platforms and the increasing trend of "bundle" shopping in Malaysia. The country's strategic position as a hub for vintage and secondhand items, particularly in fashion, has strengthened the C2C segment. The presence of various thrift stores, ranging from small roadside stalls to large corporate chains like Jalan Jalan Japan, has created substantial demand for C2C shipping services. The segment is further supported by Malaysia's proximity to Japan and other Asian markets, making it easier to import and redistribute rare and sought-after merchandise through C2C channels.

Segment Analysis: By Shipment Weight

Segment Analysis: By Mode of Transport

Road Segment in Malaysia CEP Market

The road transport segment dominates the Malaysian courier, express, and parcel (CEP) market, accounting for approximately 67% of the total market volume in 2024. This significant market share is primarily driven by the country's robust e-commerce landscape and well-developed road infrastructure network. Major global players like DHL, FedEx, Kuehne+Nagel, MAERSK, and CEVA Logistics, alongside local players such as Pos Laju, GDex, and Lalamove, have established strong road logistics networks across Malaysia. To support sustainable last-mile delivery operations, several companies have initiated green mobility solutions. For instance, DHL Express has deployed electric vehicles in Malaysia and aims to expand its electric fleet, while FedEx has introduced electric vehicles for parcel deliveries in the Klang Valley area. These initiatives align with the Malaysian government's objective to promote electric vehicles and achieve net-zero emissions by 2050.

Others Segment in Malaysia CEP Market

The Others segment in Malaysia's CEP market is experiencing robust growth, projected to expand at approximately 4% annually from 2024 to 2029. This growth is being driven by innovative delivery solutions and technological advancements in the logistics sector. The segment has witnessed significant developments in alternative delivery methods, including the integration of parcel locker networks at strategic locations such as RapidKL Light Rail Transit (LRT) stations. Companies like Cainiao Smart Logistics have been actively expanding their presence by establishing collection stations throughout West Malaysia and implementing new consolidated end-to-end logistics services. These developments have helped reduce shipping durations and improve delivery efficiency. The segment's growth is further supported by strategic partnerships between logistics companies and the increasing adoption of automated sorting systems and digital technologies.

Remaining Segments in Mode of Transport

The air transport segment plays a crucial role in Malaysia's CEP market, particularly for time-sensitive and international shipments. This segment is characterized by its focus on express delivery services and handling of high-value goods. Major cargo players in Malaysia are continuously expanding their routes and upgrading their licenses from Air Service Permits to Air Service Licenses to enhance their service capabilities. The segment has also witnessed innovation through automated drone testing initiatives and the introduction of new door-to-door delivery services. The integration of air transport with other modes of delivery has created a comprehensive logistics network that caters to diverse customer needs across Malaysia.

Segment Analysis: By End User Industry

Manufacturing Segment in Malaysia CEP Market

The manufacturing segment dominates Malaysia's courier, express, and parcel (CEP) market, accounting for approximately 35% market share in 2024. This significant share is driven by Malaysia's robust manufacturing sector, particularly in electronic component manufacturing which contributes 4.6% to the country's GDP. The segment's strength is further reinforced by major investments, including the government's National Semiconductor Strategy announced in May 2024, which allocated USD 5.3 billion in financial support and aims to train 60,000 semiconductor engineers to establish Malaysia as a global chip hub. The manufacturing sector's sales value demonstrated strong performance with a 10.3% increase reaching MYR 145.2 billion in early 2024, highlighting the sustained demand for CEP services from this sector. The segment's growth is also supported by various government initiatives like the National Policy on Industry 4.0 (Industry4WRD) and the New Industrial Master Plan 2030, which focus on digitizing the manufacturing sector and boosting industrial development.

E-commerce Segment in Malaysia CEP Market

The e-commerce segment is experiencing the most rapid growth in Malaysia's CEP market, with an expected growth rate of approximately 8% between 2024 and 2029. This exceptional growth is supported by Malaysia's high internet penetration rate of 89%, the highest in Southeast Asia, and its growing digitally savvy population. The segment's expansion is further facilitated by the government's implementation of various programs, including the 'Go-eCommerce Onboarding Campaign' which provides financial aid and subsidies to SMEs for online expansion. The robust growth is also driven by secure online payment systems, with payment cards accounting for nearly 25% of e-commerce transaction value. Major e-commerce platforms like Shopee, which attracts approximately 55 million visitors monthly, continue to drive demand for CEP services. The segment's growth is further supported by cross-border e-commerce activities, with Malaysia's Digital Free Trade Zone (DFTZ) initiative streamlining international trade and expanding global market opportunities for local businesses.

Remaining Segments in End User Industry

The Malaysian CEP market encompasses several other significant segments including Financial Services (BFSI), Healthcare, Primary Industry, and Wholesale and Retail Trade. The BFSI sector leverages CEP services for secure document delivery and financial instrument transportation, while the healthcare segment utilizes specialized delivery services for medical supplies and equipment. The primary industry segment, comprising agriculture, fishing, and forestry, requires CEP services for transporting time-sensitive agricultural products and supplies. The wholesale and retail trade segment continues to maintain its significance in the market through traditional retail operations and omnichannel delivery solutions. Each of these segments contributes uniquely to the market's dynamics, with varying requirements for speed, security, and handling specifications, thereby driving innovation and specialization in CEP services.