Sadie Keljikian, Stern Corporate Services Group
Contract logistics are in high demand in Malaysia, largely thanks to growth in the ecommerce and pharmaceutical industries.
Malaysia’s nation-wide uptick in ecommerce has been remarkable, with nearly 70% of the population (over 21 million people) taking advantage of online purchasing. Projections indicate that those numbers will only grow, estimating at least an 11% increase annually.
Since ecommerce relies on a warehousing system with storage, picking and packing near the final destination, local contract logistics are crucial to ensure that goods can be properly stored and easily delivered to the consumer. This, however, is proving to be a challenge. There are very few warehouses outside of major cities like Kuala Lumpur. Many regions have minimal physical and technological accessibility, complicating the last leg of the shipping process and any attempts to track deliveries.
In an attempt to keep up with rising demand, Dubai-based logistics group GAC has doubled its warehousing capacity. Most notably, they’ve opened a 4,000-pallet facility in Bukit Raja to replace its facility in Shah Alam, which had less than half the capacity. Experts are optimistic about the new space, as it is conveniently located and equipped with new technology to increase efficiency and accuracy.