Find Freight, Shipping and Logistics expertise in Malaysia

The freight and shipping sector in Malaysia is well-developed and reliable, incorporating established sea, air, road and rail networks. In shipping, the Malaysian government’s longstanding policy on the industry is the development of a national fleet, in order to reduce out-payments to foreign firms and thus become self-sufficient. The government sees this as a key fulcrum for future economic development, utilising the well-developed port network.

The country has five major ports (Port Klang, Tanjung Pelapas, Penang, Kuantan, Bintulu) and 24 other main ports, each of which is established either as a Federal or State Port under the jurisdiction of the respective governments. Container liner services are handled at 12 of the ports. Road freighting is supported by 187 haulier companies and 819 general cargo companies (2009). The rail transport network, run by KTM Berhad, operates land feeder services to five port container terminals, three inland ports, four inland container depots and four freight terminals.

The air logistics industry incorporates air cargo carriers and integrators, airport and cargo terminal operators, ground handlers, air cargo agents and airport regulators. The industry is provided for by the five international airports (KLIA, Penang, Senai, Kuching and Kota Kinabalu) and 15 domestic airports.

The World Bank’s Logistics Performance Index (2012) placed Malaysia 27^th out of 155 countries in terms of its infrastructure, with a value of 3.43 out of 5, above the average of 2.66 for the East Asia and Pacific region.

The country is a net exporter, with export of goods valuing €145.5 billion in 2010 whilst imports were valued at €119.1 billion. Japan and China are the most significant import partners, with a share of 13.2% and 13.1% respectively in 2010. They are closely followed by Singapore, the United States and the European Union. The same five partners dominate the export trade, with Singapore holding the greatest share, followed by China, the European Union, Japan and the USA.

Most of the leading global freight-forwarding companies operate in the country together with local small and medium enterprises. There are numerous integrated logistics services, comprising cargo, intermediaries, carrier intermediaries and warehouse operators. Logistics consultancy is offered by both international firms and locally based enterprises.

The key private sector representative body in freight and logistics is the Federation of Malaysian Freight Forwarders Association.

In the World Bank’s Logistics Performance Index (2012) Malaysia ranks 29^th out of 155 countries in terms of its overall logistics performance with a score of 3.49, 79.8% of the highest performer, Singapore. This placed it comfortably above the average for its income group (upper middle income) and the East Asia and Pacific region, both with a value of 2.84. Each country is scored from one to five, with one being the worst performance in terms of logistics, infrastructure and customs amongst other categories. Malaysia is again above average for its region and income group in relation to all of the measured categories – customs (29^th), international shipments (26^th), logistics quality and competence (30^th), tracking and tracing (28^th) and timeliness (28^th).