Property-Insights Logistics-In Malaysia Final
Property-Insights Logistics-In Malaysia Final
20.9
3.1 7.4
17.4 7.0
4.9
Legend
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
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.
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
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.
Port of Manila
5.085 mil TEU
Laem Chabang
8.070 mil TEU
Ho Chi Minh City
6.282 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
• 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.
-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.
Legend:
International Airports
Construction stage
Planning stage
Johor, 13
Kedah, 2
Melaka, 4
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%
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.
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
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
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.
Director
z
Aziah Mohd Yusoff
[email protected]
Manager
Michael Chai
[email protected]
Analysts
Nurzawani Latiff
[email protected]
Sarah Seow
[email protected]
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.
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