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Malaysia Freight And Logistics Market Size

The Malaysia Freight and Logistics Market is projected to experience significant growth over the forecast period, driven by advancements in infrastructure and a strong cross-border e-commerce sector. The market's expansion is supported by Malaysia's commitment to clean energy and technological innovations, which are integral to its infrastructure development. The robust demand for transportation services is further fueled by the parity in market share between cross-border and domestic e-commerce. Additionally, strategic government initiatives, such as the construction of a new port, aim to enhance cargo handling capacities, contributing to the overall increase in market size.

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Market Size of malaysia freight and logistics Industry

Malaysia Freight And Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 28.12 Billion
svg icon Market Size (2030) USD 38.28 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 5.28 %
svg icon Fastest Growing by Logistics Function Courier, Express, and Parcel (CEP)
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Malaysia Freight And Logistics Market Analysis

The Malaysia Freight And Logistics Market size is estimated at 28.12 billion USD in 2024, and is expected to reach 38.28 billion USD by 2030, growing at a CAGR of 5.28% during the forecast period (2024-2030).

28.12 Billion

Market Size in 2024 (USD)

38.28 Billion

Market Size in 2030 (USD)

4.16 %

CAGR (2017-2023)

5.28 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

6.72 %

Projected CAGR, Air, 2024-2030

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Despite a few challenges, the country's primary air cargo players are actively expanding their operations. For instance, My Jet Xpress and World Cargo Airline have taken steps to enhance their operations.

Largest CEP Market by Destination

65.02 %

value share, Domestic, 2023

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With e-commerce user penetration projected to hit 55% by 2030, the domestic CEP market is poised for growth. As a result, the number of service providers is anticipated to witness an uptick in the coming years.

Largest Market by End User Industry

39.34 %

value share, Manufacturing, 2023

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In 2023, Malaysia introduced the New Industrial Master Plan (NIMP) 2030, aiming to bolster its manufacturing sector. The plan is projected to contribute USD 133.19 billion to the economy by 2030.

Largest Warehousing Market by Temperature Control

91.95 %

value share, Non-Temperature Controlled, 2023

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E-commerce is experiencing rapid growth, and with over 1000 companies involved in delivering e-commerce shipments throughout the country, driving the demand for warehouses.

Fastest Growing Warehousing Market by Temperature Control

5.06 %

Projected CAGR, Temperature Controlled, 2024-2030

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The pharmaceutical industry is leading the demand for temperature-controlled warehouses. The OTC pharmaceuticals market is expected to register a CAGR of 7.27% during 2022-2027.

Rising exports since the economic recovery in 2021 and investment opportunities leading to freight demand

  • Malaysia's push for clean energy is evident in its infrastructure development, as local firms spearhead advancements in technologies like rooftop and floating solar, battery storage, and hydrogen. In a notable move, in May 2022, Masama Sdn Bhd awarded Sarawak Consolidated Industries Bhd (SCIB) a RM 38 million (USD 8.61 million) contract for engineering, procurement, construction, and commissioning. The project, connecting Baleh Bridge, RH Belaja, Ng Benin, SK Ng Pelagus, and Pelagus Resort in Kapit, Sarawak, was successfully completed in March 2023.
  • Malaysia's cross-border e-commerce is robust, accounting for 40% of all such transactions. Malaysians are drawn to international brands primarily due to better prices (72%) and access to exclusive products (49%). China, Singapore, the United States, and Japan dominate the top cross-border sales destinations. Notably, the Malaysian cross-border e-commerce market's share is on par with domestic e-commerce, further fueling demand for transportation services.
  • According to the Ministry of International Trade and Industry (MITI), the maritime and shipbuilding and ship repairing (SBSR) industries had the highest value of exports to the United States, followed by Indonesia and the United Arab Emirates. Moreover, in April 2023, the Malaysian government announced its plan to construct a port for RM 28 billion (USD 6.34 billion), scheduled to be completed by 2060. This initiative aims to enhance the handling capacity for both container and conventional cargo at Port Klang to 36 million TEUs in 2060 from 13.2 million TEUs in 2022.
Malaysia Freight And Logistics Market

Malaysia Freight And Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.

  • Malaysia's push for clean energy is evident in its infrastructure development, as local firms spearhead advancements in technologies like rooftop and floating solar, battery storage, and hydrogen. In a notable move, in May 2022, Masama Sdn Bhd awarded Sarawak Consolidated Industries Bhd (SCIB) a RM 38 million (USD 8.61 million) contract for engineering, procurement, construction, and commissioning. The project, connecting Baleh Bridge, RH Belaja, Ng Benin, SK Ng Pelagus, and Pelagus Resort in Kapit, Sarawak, was successfully completed in March 2023.
  • Malaysia's cross-border e-commerce is robust, accounting for 40% of all such transactions. Malaysians are drawn to international brands primarily due to better prices (72%) and access to exclusive products (49%). China, Singapore, the United States, and Japan dominate the top cross-border sales destinations. Notably, the Malaysian cross-border e-commerce market's share is on par with domestic e-commerce, further fueling demand for transportation services.
  • According to the Ministry of International Trade and Industry (MITI), the maritime and shipbuilding and ship repairing (SBSR) industries had the highest value of exports to the United States, followed by Indonesia and the United Arab Emirates. Moreover, in April 2023, the Malaysian government announced its plan to construct a port for RM 28 billion (USD 6.34 billion), scheduled to be completed by 2060. This initiative aims to enhance the handling capacity for both container and conventional cargo at Port Klang to 36 million TEUs in 2060 from 13.2 million TEUs in 2022.
End User Industry
Agriculture, Fishing, and Forestry
Construction
Manufacturing
Oil and Gas, Mining and Quarrying
Wholesale and Retail Trade
Others
Logistics Function
Courier, Express, and Parcel (CEP)
By Destination Type
Domestic
International
Freight Forwarding
By Mode Of Transport
Air
Sea and Inland Waterways
Others
Freight Transport
By Mode Of Transport
Air
Pipelines
Rail
Road
Sea and Inland Waterways
Warehousing and Storage
By Temperature Control
Non-Temperature Controlled
Temperature Controlled
Other Services
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Malaysia Freight And Logistics Market Size Summary

The Malaysia Freight and Logistics Market is poised for significant growth, driven by advancements in infrastructure and a robust cross-border e-commerce sector. The country's commitment to clean energy is reflected in its infrastructure projects, such as the contract awarded to Sarawak Consolidated Industries Bhd for a major connectivity project in Sarawak. This initiative, along with the development of new ports and enhancements to existing ones like Port Klang, underscores Malaysia's strategic focus on boosting its transportation capacity. The maritime and shipbuilding industries also play a crucial role, with substantial exports to key markets like the United States, Indonesia, and the United Arab Emirates. The government's plans to centralize logistics planning and encourage digital adoption are set to transform the logistics landscape, further supported by initiatives like the cold chain investment incentive scheme.

The transportation sector's growth is fueled by increased demand from manufacturing, FMCG, and automotive sectors, with significant investments in projects like the East Coast Rail Link and the MRT3 urban rail network. Despite challenges such as a deficit in foreign direct investment inflows, the sector's expansion is supported by government initiatives and strategic investments, including Petronas' substantial investment in the RAPID project to meet domestic refined petroleum demands. The market is characterized by fragmentation, with major players like DB Schenker, DHL Group, FedEx, J&T Express, and MMC Corporation Berhad holding a small share. Recent acquisitions and expansions by companies such as Kerry Logistics Network and DHL Express highlight the competitive landscape and the ongoing efforts to enhance international freight forwarding capabilities and inter-continental connectivity.

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Malaysia Freight And Logistics Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3.Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Agriculture, Fishing, and Forestry

      2. 1.1.2 Construction

      3. 1.1.3 Manufacturing

      4. 1.1.4 Oil and Gas, Mining and Quarrying

      5. 1.1.5 Wholesale and Retail Trade

      6. 1.1.6 Others

    2. 1.2 Logistics Function

      1. 1.2.1 Courier, Express, and Parcel (CEP)

        1. 1.2.1.1 By Destination Type

          1. 1.2.1.1.1 Domestic

          2. 1.2.1.1.2 International

      2. 1.2.2 Freight Forwarding

        1. 1.2.2.1 By Mode Of Transport

          1. 1.2.2.1.1 Air

          2. 1.2.2.1.2 Sea and Inland Waterways

          3. 1.2.2.1.3 Others

      3. 1.2.3 Freight Transport

        1. 1.2.3.1 By Mode Of Transport

          1. 1.2.3.1.1 Air

          2. 1.2.3.1.2 Pipelines

          3. 1.2.3.1.3 Rail

          4. 1.2.3.1.4 Road

          5. 1.2.3.1.5 Sea and Inland Waterways

      4. 1.2.4 Warehousing and Storage

        1. 1.2.4.1 By Temperature Control

          1. 1.2.4.1.1 Non-Temperature Controlled

          2. 1.2.4.1.2 Temperature Controlled

      5. 1.2.5 Other Services

Malaysia Freight And Logistics Market Size FAQs

The Malaysia Freight And Logistics Market size is expected to reach USD 28.12 billion in 2024 and grow at a CAGR of 5.28% to reach USD 38.28 billion by 2030.

In 2024, the Malaysia Freight And Logistics Market size is expected to reach USD 28.12 billion.

Malaysia Freight & Logistics Market Report Snapshots

Malaysia Freight And Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030