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Property-Insights Logistics-In Malaysia Final

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botoy26
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PROPERTY INSIGHT

AN INTRODUCTION TO MALAYSIA’S LOGISTICS


(OCTOBER 2020)

CBRE|WTW RESEARCH & CONSULTING 1 PROPERTY INSIGHT - LOGISTICS


ABBREVIATIONS TABLE OF CONTENTS
UNTAD : United Nations Conference on Trade and Development 1.0 Overview of Port & Air Traffic Globally (3)
IATA : International Air Transport Association • SEA Traffic
MOT : Ministry of Transportation • Air Traffic
TEU : Twenty-foot equivalent unit
KLIA : Kuala Lumpur International Airport 2.0 Regional / Global Trade (5)
Y-O-Y : Year-over-year • The Halal Card
GDP : Gross Development Product
FDI : Foreign Direct Investment 3.0 Malaysia Second Most Active in TEU Handling in Region (6)
APAC : Asia Pacific
MIL : Million 4.0 Port Klang Leads as Major Port in Malaysia (7)
BIL : Billion
5.0 Malaysia Stepping Forward in Air Freight (8)

6.0 Why Invest in Malaysia? (9)


• Infrastructure Projects in Malaysia
• Selected Mega Infrastructure in Malaysia

7.0 Free Zone (12)


• Free Zone in Malaysia

8.0 Leading Manufacturing Countries (14)

9.0 Malaysia as Manufacturing Base (15)

10.0 Compelling Presence of Major 3PL Logistics Players (16)

11.0 Klang Valley Leads The Logistics Sector In Malaysia (17)

12.0 The Future of Malaysia’s Logistics (18)

CBRE|WTW RESEARCH & CONSULTING 2 PROPERTY INSIGHT - LOGISTICS


OVERVIEW OF PORT & AIR TRAFFIC GLOBALLY
According to the United Nations Conference on Trade and Development (UNCTAD), the busiest shipping route is from Europe to East Asia totalling 17.4 million TEUs and
7.0 million TEUs return, as almost all of this traffic passes through the Straits of Malacca.

North America Europe Asia

13.5% 21.4% 23.6%

20.9

3.1 7.4
17.4 7.0

4.9
Legend

Air Freight Routes

Cargo Routes

Notes:
i. Cargo: Figures in TEUs(mil)
ii. Air Frights: Figures in % of freight
tonnes-kilometres Sources: Marine Traffic, UNCTAD, IATA
CBRE|WTW RESEARCH & CONSULTING 3 PROPERTY INSIGHT - LOGISTICS
OVERVIEW OF PORT & AIR TRAFFIC GLOBALLY
SEA TRAFFIC Number of Gross register
Port
With Malaysia’s continuous endeavour in strengthening the nation’s transport infrastructure, the usage of its Ships calling tonnage ('000)
port facilities will accelerate. Klang 14,182 378,598
Sabah 8,694 82,865
Port Klang generated the highest export value at RM157.7 billion, contributing 32.3% of the total exports by
Bintulu 7,586 72,380
ports, followed by Bintulu at RM66 billion (12.1%) due to the latter’s heavy involvement in handling the
Miri 6,475 6,093
nation’s oil and gas exports.
Penang 5,798 74,282
AIR TRAFFIC Tanjung Pelepas 4,868 38,944
In 2019, KLIA handled total cargo volume amounting to 687,240 metric tonnes, which contributed 72.8% Johor 3,858 41,987
of total cargo movement in Malaysia. Kuantan 2,117 28,558
Kuching 1,420 11,075
87.2% of cargo handled by KLIA were for import and export purposes.
Kemaman 795 7,847
Port Dickson 736 13,348
Airports in the Klang Valley (KLIA, Rajang 552 867
KLIA 2, Subang) handled air cargo
Teluk Ewa 308 2,295
totalling 720.6 thousand metric
tonnes (76%), followed by Penang at North Europe Tanjung Bruas 216 2,486
America 7.5%
139.6 thousand metric tonnes (15%). 0.1% Total 57,605 761,625
Central
Asia Source: Marine Department Malaysia
0.2%
The completion of KLIA Digital Free South
North
Trade Zone Park this year will further Middle East Asia
Asia
East 41.6%
boost air logistics trade. 9.6%
13.2%

South-East
Asia
Africa 16.7%
0.3%

South-West
Pacific
10.8%
Source: Marine Department Malaysia

CBRE|WTW RESEARCH & CONSULTING 4 PROPERTY INSIGHT - LOGISTICS


REGIONAL / GLOBAL TRADE
The volume of exports and imports in Malaysia far exceeds the needs of its population in terms of proportion, which underlines the future direction of Malaysian logistics
to serve regional / global markets.

In 2019, Malaysia’s registered total trade value of RM1.8 trillion. The manufacturing sector is the principle contributor to Malaysia’s total exports (2019: RM 986.4 bil), in
which electrical & electronic products (RM 834.2 bil) form the bulk of exports.

THE HALAL CARD


As reported in a State of the Global Islamic Economy report, Muslims spent $2.2 trillion (RM 9.38 trillion) on halal goods and Islamic lifestyle sectors in 2018. This figure
will only increase as the Muslim population is forecasted to reach 2.2 billion by 2030.

As of February 2020, 46 countries have recognised Malaysia’s Islamic Development Department’s (JAKIM) halal certification, signifying the strong foundation built by the
nation in this sector. RM 40.2 billion worth of halal goods were exported by Malaysia in 2019. Logistics companies will play a major role in the emerging “Halal logistics”
industry in Malaysia.

Exports:
World

18,739,914
Exports:
China

Imports: 2,498,570
ASEAN

18,998,049 Exports:
Imports: 1,488,749 Exports:

Malaysia
Population: 2,068,950
238,161
7,714,577 Imports:
Population: 1,394,784 Imports:
1,420,062
204,988
Population:
661,021 Population:
32,454

Source: International Trade Centre (ITC); United Nations, Department of


Economic and Social Affairs, Population Division (2018)
Note: Exports and imports value in USD million as of 2019; Population in
thousands

Source: Bank Negara Malaysia


CBRE|WTW RESEARCH & CONSULTING 5 PROPERTY INSIGHT - LOGISTICS
MALAYSIA SECOND MOST ACTIVE IN TEU HANDLING IN REGION
Listed among the top 20 busiest container ports globally, Port Klang (12th) and Tg Pelepas Port (18th) indicated the strong presence of Malaysia within the region.

Malaysia contributed 29.22% of its total exports to ASEAN countries in Q1 2020, signifying a y-o-y growth of 0.71%, from 28.51% in the previous year.

5th in global total


container TEU
handling in 2018

Port of Manila
5.085 mil TEU
Laem Chabang
8.070 mil TEU
Ho Chi Minh City
6.282 mil TEU

Port Klang Port of Singapore


12.315 mil TEU 36.600 mil TEU

Tanjung Pelepas
9.077 mil TEU

Tanjung Priok
7.800 mil TEU Tanjung Perak
3.865 mil TEU

Source: UNCTAD
CBRE|WTW RESEARCH & CONSULTING 6 PROPERTY INSIGHT - LOGISTICS
PORT KLANG LEADS AS THE MAJOR PORT IN MALAYSIA

70% use of total Sabah Ports


handling capacity
Penang of 37.4 million
Kemaman Port
TEU
2nd in the region
behind Singapore Miri
with capacity of
Kuantan Port 37.4 million TEU TEU Handled in Malaysia in 2019 by Seaport
Port Klang annually Annual Total Container
Bintulu Port Port
Capacity (TEUs) Throughput (TEUs)

Rajang Port Klang 19,600,000 13,557,717

Tanjung Tanjung Pelepas 12,500,000 9,077,523


Pelepas Johor Port Penang 2,000,000 1,492,672
Kuching
Johor 1,200,000 1,043,448
Malaysia’s Total TEU handling is expected to increase as Westport in Port Klang has planned for expansion Sabah 500,000 379,484
to 40 million TEU capacity by 2040.
Bintulu 400,000 343,264
• Port Klang handled 51.39% of total container throughput within Malaysia in 2019, followed by Port Kuching 480,000 237,352
Tanjung Pelepas at 34.41%.
• Transhipment activities took up 65.29% in 2019. Kuantan 600,000 154,150
• Malaysia’s has total annual capacity of 37.4 million TEU whilst neighbouring Singapore has total 43
Rajang 116,000 67,623
million TEU capacity.
• In 2019, Malaysia handle a total of 26.3 million TEU (70% of the total) whilst Singapore 36.6 million Miri 34,000 28,316
(85% of the total). Source: Ministry of Transport, Malaysia

CBRE|WTW RESEARCH & CONSULTING 7 PROPERTY INSIGHT - LOGISTICS


MALAYSIA STEPPING FORWARD IN AIR FREIGHT
Establishment of KLIA Aeropolis shall boost air cargo forwarding in Malaysia. Malaysia has ample of improvement for air freight cargo as usage is only 34% of total
estimated current capacity.

• KLIA, KLIA2 and Subang in Klang Valley have a total capacity of 1.31 million tonnes annually, followed by Bayan Lepas in Penang at 360,000 tonnes, Senai (estimated
330,000 tonnes) and Kuching (estimated 103,000 tonnes).
• Malaysia handled a total of 754,000 tonnes in 2019, airports in Klang Valley handled 83.05% of total international cargo handled in Malaysia.
• DFTZ, KLIA Aeropolis and the proposed expansion of the cargo complex in Kuching Airport are steps being taken to stimulate air freight volume.

34% use of Air Cargo Handled in Malaysia in 2019


by Airport
total capacity
Kota Kinabalu
Langkawi
overall Airport
International Cargo
Share
Handled (tonnes)
Malaysia
Labuan Air Cargo Handling KLIA 482,778 64.03%
Penang
Capacity KLIA2 116,399 15.44%
Pulau
Miri Tawau 115,281 15.29%
Pinang
70% use of total Subang 26,996 3.58%
Subang
capacity in Changi Johor Bahru 8,392 1.11%
(Singapore) Malaysia, 2.2
Kota
KLIA Changi, million tonnes 2,657 0.35%
KLIA2
Johor Bahru
Singapore, 3.0 Kinabalu
million tonnes Kuching 1,314 0.17%
Changi
(2.1million tonnes Kuching Labuan 156 0.02%
handled)
14th in world ranking Langkawi 18 0.00%
Source: Ministry of Transport, Malaysia
Miri 713 0.00%
Tawau 80 0.00%
CBRE|WTW RESEARCH & CONSULTING 8 PROPERTY INSIGHT - LOGISTICS
WHY INVEST IN MALAYSIA?

Ease of Doing Business 2020


GDP 2020f Inflation 2020f Population
3rd/25 in East Asia & Pacific
-3.5% to -1.1% 32.7 12th/190 in the world

-5.5% mil
Ranking in APAC region (25 countries)
1st Protecting Minority Investors
(2nd globally)
2nd Dealing with Construction Permits;
Getting Electricity
Labour Force & Unemployment 2020f 3 rd Trading Across Borders
Participation rate
4 th Registering Property
15.79 mil
68.8%
4.2%** 5th Enforcing Contracts;
Resolving Insolvency
Getting credit
9 th Paying Taxes
15 th Starting a Business
Source: Department of Statistics Malaysia, Bank Negara Malaysia | 2Q 2020
** Projection by Ministry of Finance (MOF) as at November 2020 Source: Doing Business 2020, The World Bank

Since June 2003, foreign investors can hold 100% of the equity in all investments in new projects.

Malaysia implemented six reforms and made starting a business easier by introducing an online
registration system for the sales and services tax. Property transfer has also been made simpler by the
implementation of an online single window platform to carry out property searches.

Tax incentives are provided. The direct tax incentives grant relief from income tax payment for a specified
period, while indirect tax incentives are in the form of exemptions from import duty, sales tax and excise
duty.

CBRE|WTW RESEARCH & CONSULTING 9 PROPERTY INSIGHT - LOGISTICS


INFRASTRUCTURE PROJECTS IN MALAYSIA
Infrastructure in Malaysia is excellent and constantly improving. Government investments in road, rail and air services will create new corridors of economic activities.
Several major infrastructure projects were announced, amongst them the ECRL and Pan Borneo Highway.

Pan Borneo Highway


1. Malaysian section: 2,083 kilometres
2. Bruneian section: 168 kilometres
3. Indonesian section: 3,073 kilometres

East Coast Rail Link (ECRL)


Line length: 640 kilometres
Operating speed:
Passenger 160 km/hr
freight 80 km/hr

Legend:

International Airports

West Coast Expressway(WCE) Major Ports

Line length: 233 kilometres Pan-Borneo Highway


An interstate controlled-access highway
East-Coast Railway Line
connecting state of Perak and Selangor
High-Speed Railway Line
Note: The alignments are based on published sources and subject to changes made by the government West Coast Expressway
CBRE|WTW RESEARCH & CONSULTING 10 PROPERTY INSIGHT - LOGISTICS
SELECTED MEGA INFRASTRUCTURE PROJECTS IN MALAYSIA

Project Name Location Completion Description

Construction stage

37 km spanning from Petaling Jaya to Klang


LRT Line 3 Bandar Utama, Petaling Jaya – Johan Setia, Klang 2024
with 20 stations
Kelantan (Kota Bharu) – Terengganu (Dungun) – Pahang 640 km linking the east coast region with the
East Coast Rail Line (ECRL) 2026
(Mentakab) – Selangor (Port Klang) west coast region in Malaysia

Planning stage

Air Itam Line (12.8 km with 13 stations)


Komtar – Paya Terubong Tanjung Tokong Line (7 km with 8 stations)
Penang Monorail Komtar – Tanjung Tokong 2025 Raja Uda-Bukit Mertajam Line (28 km with 21
Raja Uda – Bukit Mertajam stations)
Part of Penang Transport Master Plan
Johor Baru-Singapore Rapid
Bukit Chagar (Johor Bahru) – Woodlands (Singapore) 2026 4 km connecting Johor Bahru and Singapore
Transit System (RTS)
350 km connecting KL and SG
Kuala Lumpur – Singapore High- Bandar Malaysia – Sepang – Putrajaya, Seremban – Melaka –
2031 Part of China’s One Belt One Road (OBOR)
Speed Rail (HSR) Muar – Batu Pahat – Iskandar Puteri – Jurong East, Singapore
initiative
Komtar – Penang International Airport – Future reclaimed islands 29.9 km with 27 stations in Pulau Pinang
Bayan Lepas LRT 2032
in the south of Penang Part of Penang Transport Master Plan
1. North Coastal Paired Road (Tanjong Bungah – Teluk Bahang) 1. 9.6 km
2. Bypass (Ayer Itam – Lebuhraya Tun Dr. Lim Chong Eu) 2. 6 km
Penang Three Major Roads and
3. Bypass (Persiaran Gurney – Lebuhraya Tun Dr. Lim Chong Eu) 2023 3. 3.95 km
Third Link (PMRT)
4. Third Link (Persiaran Gurney – George Town – Butterworth 4. 6.8 km connecting Georgetown and
Outer Ring Road (BORR)) Seberang Perai

CBRE|WTW RESEARCH & CONSULTING 11 PROPERTY INSIGHT - LOGISTICS


FREE ZONES IN MALAYSIA
Number of Free Zones by State

Free Commercial Zone


Kuala Lumpur,
1 Sarawak, 1
Free Industrial Zone Pahang, 1
Bayan Lepas Free Zone Terengganu, 1
(Electrical & Electronics)
– Intel AMD, Hitachi Perak, 2
Kelantan, 2

Johor, 13
Kedah, 2

Melaka, 4

Kuantan Port Free Pulau


Sungai Way Free Zone (Petroleum &
Ulu Kelang Free Zone Pinang, 5 Selangor, 9
Zone (Electrical & Petrochemical) –
(Electrical) – Texas
Electronics) Felda Oil, FPG
Instrument, Shin Etsu
– NXP, Omran Oleochemical
Teluk Panglima Garang Source: Royal Malaysian Customs Department
Port Klang Free Zone
Free Zone (Heavy
(LME, Petrochemical) – Free Zones (FZ) will facilitate the operation of regional distribution hubs.
industries) – Chemi-con,
SX Group, Aker
KYB-UMW, Megatrax
Solution, Cargrill
There are 41 free zones in Malaysia including three (3) integrated free zones (Port Klang
Free Zone (PKFZ), Pasir Gudang Free Zone (PGFZ) and Pelabuhan Tanjung Pelepas (PTP)
Batu Berendam Free Zone Free Zone). The FZ in Bayan Lepas is focusing on Electrical and Electronics while PGFZ
(Electrical & Electronics) – and PKFZ are focusing on petrochemical and metal products (LME) respectively.
TEAC Electronics, Texas
Instrument, Poseshi Tech
Pasir Gudang Free Zone
Pelepas Free Zone (Petroleum & Petrochemical) –
(Logistics) – Tiong Nam, BASF, Sibelco, Lam Soon
Tasco, Nippon Express Edible Oil

CBRE|WTW RESEARCH & CONSULTING 12 PROPERTY INSIGHT - LOGISTICS


FREE ZONE
For companies intending to set up their regional manufacturing or distribution
bases in Malaysia, they can do so in a Free Zone which to minimise customs
formalities. The designated area is declared by the Minister of Finance under
the provision of Section 3(1) of the Free Zones Act 1990 to be a Free
Commercial Zone (FCZ) or Free Industrial Zone (FIZ) in Malaysia.
Free Commercial Zone (FCZ) Free Industrial Zone (FIZ)
In areas where FIZs are not available, companies can set up Licensed
Manufacturing Warehouses (LMWs) which are accorded facilities similar to
those enjoyed by establishments in FIZs. Integrated Free Zones are available
for companies involved in both manufacturing and commercial activities.
Commercial and trading
Manufacturing and exports
FZs and logistics form a symbiotic relationship as the latter’s performance activities including entrepôt
related activities
directly affects international trade performance. With the support of the trade
Federal Government, successful logistics clusters have been established where
different players are able to work symbiotically and efficiently to ensure
continuous growth in external trade. Import duty expemptions of
Redistribution, bulk breaking,
raw materials, component
repackaging of products,
parts, machinery and
relabelling and related
equipment required directly in
activities geared for exports
the manufacturing process

Typically located near the


Company has to export at
country’s ports due to its high
least 80% of its output
traffic in trade

CBRE|WTW RESEARCH & CONSULTING 13 PROPERTY INSIGHT - LOGISTICS


LEADING MANUFACTURING COUNTRIES
Malaysia’s Manufacturing Base will facilitate assembly, packaging and finishing of final products prior to export to consumer markets. Semi-conductor goods
continued to be major exported product from Malaysia.

Manufacturing Top 3 Malaysia Export Manufactured Goods,


Share of National Share of Global 2019
Rank Country Output
Output Manufacturing
(USD million)

1 Indonesia 204,819 29.1% 1.51% Office machines &


automatic data
2 Thailand 119,958 11.5% 0.88% processing,
49,343
3 Malaysia 78,056 21.83% 0.57%
Petroleum Semi-
5 Philippines 71,453 29.2% 0.53% products, conductors,
59,412 221,687
4 Singapore 67,228 22.7% 0.49%

6 Vietnam 38,276 16.4% 0.28%

7 Myanmar 17,205 16.8% 0.13%

8 Cambodia 3,596 9.9% 0.03%

9 Brunei Darussalam 2,022 10.9% 0.01%

10 Laos 1,349 18.2% 0.01%

Source: UNCTAD Stat, Bank Negara Malaysia

CBRE|WTW RESEARCH & CONSULTING 14 PROPERTY INSIGHT - LOGISTICS


MALAYSIA AS MANUFACTURING BASE
Malaysia approved a total of 988 manufacturing projects in 2019 worth RM82.7 billion. Foreign Direct Investment (FDI)
contributed RM53.9 billion or 65% of the total.

Malaysia Total Investment 2019 Top 5 Major FDI, 2019

Japan,
RM3.8 bil
Perlis Taiwan,
Kedah Singapore, RM5.2 bil
RM0.05, 0.1% RM11.5 bil, 14% Domestic RM5.6 bil
Kelantan
RM28.8
RM0.02 bil, 0.02% billion, 35%
Foreign,
RM53.9
China,
Penang billion, 65%
Terengganu Sabah RM15.3 bil
RM16.8 bil, 20%
RM0.6 bil, 1% RM6.5 bil, 8% USA,
Perak RM14.2 bil
RM6.6 bil, 8%

Selangor Pahang
RM17.0 bil, 21% RM4.9 bil, 6%

Kuala Lumpur
RM0.2 bil, 0.2%
Johor Sarawak
N.Sembilan RM11.5 bil, 14% RM2.6 bil, 3%
RM3.6 bil, 4%
Melaka
RM0.8 bil, 1%

Source: Malaysian Investment Development Authority

CBRE|WTW RESEARCH & CONSULTING 15 PROPERTY INSIGHT - LOGISTICS


COMPELLING PRESENCE OF MAJOR 3PL LOGISTICS PLAYERS
Major 3PL logistics players are well balanced in terms of local (57%) and multinational (43%) players. Major
3PLs players such as DHL, Nippon Express, DB Schenker and more are found operating in Malaysia. Merging
of multinational and local players such as CJ Century shows a maturing logistics landscape in the region and Top Ten Largest 3PLs by Total Occupied Space
globally.
Nippon
Almost all Major 3PL logistics players are operating with their primary warehouse and distribution centres in Pos Logistics Express
the Klang Valley due to easy access to Port Klang and KLIA. (formerly 9%
DHL
known 10%
Selected location of 3PL’s warehouses in Klang Valley Konsortium
Logistik) LF
11% Logistics
KUALA
LUMPUR 14%
Integrated Tasco /
Subang Logistics NYK
PETALING
JAYA Berhad 14%
SHAH ALAM
14%
SUBANG JAYA

KLANG Tiong Nam


CJ Century Logistics Holdings
North Port
Port Klang Logistics Bhd
12%
PUCHONG

16%
BANGI

PULAU
INDAH PUTRAJAYA

Legend

KLIA
Warehouses by Major Logistics / 3PL

16
Source: CBRE WTW Research
MAJOR LOGISTICS WAREHOUSE DEVELOPERS / OPERATORS IN MALAYSIA
About 10 major logistics warehouse developers were identified in Malaysia. Mostly are public companies and incorporated in Malaysia. Malaysian companies were
relatively smaller compared to the multinational companies.

These developers or owner of logistics warehouse include REITs, property developers, state agencies and logistics companies.

Selected Logistics Warehouse Developers / Operators

Corporate Name Axis REIT Corporate Name AmanahRaya REIT Corporate Name LYL Group Sdn Bhd
Country Malaysia Country Malaysia Country Malaysia
Listing Listed Listing Listed Listing Unlisted
Start-up 2005 Start-up 2006 Start-up 1990
Total Asset (Number) 45 Total Asset (Number) 15 Total Asset (Number) 6
Total Asset (Value) RM 2.67 billion Total Asset (Value) RM 1.4 billion Total Asset (Value) n/a
Principal activity REIT Principal activity REIT Principal activity Property Developer

Corporate Name Atrium REIT Corporate Name Mapletree Logistic Trust


Country Malaysia Country Singapore
Listing Listed Listing Listed
Start-up 2006 Start-up 2005
Total Asset (Number) 5 Total Asset (Number) in
Total Asset (Value) RM 270.6 million Malaysia 15
Principal activity REIT Total Asset (Value) RM 23.6 billion
Principal activity REIT

17
Source: CBRE WTW Research
KLANG VALLEY LEADS THE LOGISTICS SECTOR IN MALAYSIA
Having the busiest ports namely Port Klang and North Port coupled with proximity to Kuala Lumpur International Airport (KLIA) placed the Klang Valley as the preferred
location for logistics. The emergence of e-commerce has boosted logistics activities and surge in warehouse demand.

Recent Observation

Most are looking for


expansion especially for Sea Freight

the regional markets Increase in future demand has led


to some expansion plans by ports

Logistics Players and possibility of developing the


third port terminal at Pulau
Carey, Klang.
Digital Free Trade Zone
(DFTZ) at KLIA would
boost the long-term
outlook of Malaysia’s
logistics companies

Air Freight
THE FUTURE OF MALAYSIA’S LOGISTICS
LOCATION: Strategically located on the Straits of Malacca and serving as a GLOBAL SUPPLY CHAIN REALIGNMENT: The changing global manufacturing
gateway to the South China Sea, Malaysia is ideally positioned to emerge as landscape may just tip the scale in favour of Malaysia. With readily available
THE regional logistics hub. manufacturing resources and skills, Malaysia can attract manufacturing companies
looking at setting up alternative manufacturing bases. Electrical and electronics (E&E)
LOGISTICS ENABLED: Land availability, a skilled labour pool and established stands as the country’s strongest manufacturing industry.
infrastructure are among the strengths of Malaysia in becoming a destination
of choice for logistics and multinational companies’ regional distribution FREE ZONE: Free Zones will facilitate import/export activities enabling customs
centres (RDC) to better serve the SEA market, and onwards to the Indian, process and tariffs to be minimised for re-export manufacturing and regional
Middle East and African markets. distribution.

E-COMMERCE: The rise in e-commerce will spur logistics in areas close to GOVERNMENT COMMITMENT: The government continues to invest in port
seaports, airports and urban catchments, as retailers and 3PL providers alike expansions and road networks to support development of a regional logistics
are striving to meet the demand for e-commerce fulfilment. The active gateway.
industrial development market in Malaysia is an underlining testament to the
prospects of e-commerce, logistics and warehousing activities. PRIVATE SECTOR CONSENSUS: A round of surveys with the logistics players in
Malaysia consolidated our expectations that the future of the logistics industry in
HALAL TRADE MARKET / AHEAD OF THE CURVE: Providing one of the most Malaysia lies in regional/global growth. 3PL companies are expanding and looking
globally recognised halal certifications, Malaysia is poised to develop as the for additional warehouse space.
Global Halal Hub to serve the growing halal market in Asia and the Middle
East. ROOM FOR IMPROVEMENT: Port capacity, technology adoption and efficiency of
trade facilitation mechanisms are key determinants to strengthen Malaysia’s
AIR FREIGHT RISING FROM THE ASHES: One of the worst hit by the competitive advantage in the future of Logistics.
pandemic, the air cargo industry will recover due to the surge in e-commerce
demand. KLIA Aeropolis will be the primary catalyst in spurring the sector’s
growth.

CBRE|WTW RESEARCH & CONSULTING 19 PROPERTY INSIGHT - LOGISTICS


For more information about this report, please contact:

Director

z
Aziah Mohd Yusoff
[email protected]

Manager

Michael Chai
[email protected]

Analysts

Nurzawani Latiff
[email protected]

Abdul Rahman Shahrim


[email protected]

Sarah Seow
[email protected]

Prepared by the CBRE|WTW Research


C H Williams Talhar & Wong Sdn Bhd
October 2020

Limitations / Disclaimer:
Our findings contained herein is based on information made available to us at the time of our survey and have been derived
from sources which we believe to be reliable. As such, we cannot guarantee its accuracy or completeness. No liability can be
accepted for any loss arising from the use of this report. All opinions and estimates expressed herein reflect our judgment as of
this date and are subject to change without notice.

Our findings should be regarded as valid for a limited period of time and should be subject to examination at regular intervals.
All rights reserved. No part of this report may be reproduced, stored in a retrieval system, or transmitted in many form or by any
means, electronics, mechanical, photocopying, recording or otherwise, without the prior permission of:

C H Williams Talhar & Wong Sdn Bhd

CBRE|WTW RESEARCH & CONSULTING 20 PROPERTY INSIGHT - LOGISTICS

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