Malaysia’s logistics industry is expected to grow by 11.5% to RM121bil this year from RM108.5bil in 2010, supported by the country’s strong external trade and stable economic outlook.
Transportation and Logistics Practice Asia-Pacific vice-president and Frost & Sullivan country head for Malaysia Gopal R said the industry was also forecast to grow at a compounded annual growth rate of 12.6% to RM196.5bil in 2015.
He said high-technology and capital-intensive projects under the 10th Malaysia Plan and the Economic Transformation Programme would create opportunities for the industry.
“The likely flow of foreign direct investments into electronics and electrical, solar-related, oil and gas as well as healthcare products industries will intensify the growth of the transportation and logistics market,” he told a briefing yesterday.
Gopal said Malaysia’s external trade was expected to increase by 10% to RM1.28 trillion this year from RM1.16 trillion last year.
He said the investment-friendly environment created by the Government would also boost sub-sectors like import-export forwarding, shipping and airfreight-related businesses.
However, he cautioned that the industry’s growth could be hampered by the lack of professionals, fragmented nature of the sector and lack of emphasis on value-added services by the service providers.
Gopal said Malaysia’s total cargo volumes were expected to increase by 12.4% to 498.4 million tonnes this year from 443.4 million tonnes in 2010.