Malaysia Courier, Express, and Parcel (CEP) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Growth in the electronics subsegment of the booming e-commerce industry is driving the expansion of the CEP segment

• In February 2024, FedEx Express achieved a milestone by executing the inaugural cross-border delivery from Malaysia to Singapore with an electric vehicle (EV). This feat was acknowledged by the Malaysia Book of Records as the 'first zero-emission cross-border delivery.' Spanning 406 km, the journey commenced at a FedEx station in Shah Alam and wrapped up at a FedEx facility in Changi Airport, Singapore. The EV recharged only once in Johor, managed to cut down tailpipe CO2 emissions by 100 kg when juxtaposed with conventional diesel vans.
• To meet the surging demand, the CEP market is witnessing significant expansions. For example, Best has broadened its logistics network in Malaysia, now encompassing over 100 last-mile service stations, alongside 270 operational stations and seven sorting centers nationwide. A new cross-border logistics service will allow Malaysian consumers to shop from Chinese e-commerce sites like Taobao and JD.com, with parcels arriving in just six working days. Additionally, the East Coast Railway Line (ECRL), set for completion in 2026, will reduce shipping times between Malaysia's east and west coasts.

Malaysia Courier, Express, and Parcel (CEP) Market Trends

Malaysia's transportation and storage sector experienced 33.42% YoY growth in 2022, despite USD 7.25 million FDI deficit

• The Belt and Road Initiative is driving Malaysia's infrastructure growth. The East Coast Rail Link (ECRL) seeks to improve connectivity between Kelantan, Terengganu, and Pahang in the East Coast with Negeri Sembilan, Selangor, and Putrajaya in the West Coast. These areas currently lack complete railway connections. The ECRL is forecasted to boost Malaysia's economic growth by up to 2.7%. Furthermore, two decades after its construction, Malaysia's economic growth is expected to reach 4.6%. The ECRL project is set to finish by December 2026 and is expected to start operating in January 2027.
• The MRT3 is the last critical route to complete the Kuala Lumpur urban rail network; the line is 50.8 km long and runs around Kuala Lumpur's outskirts. Its construction began in early 2023 and is slated for full completion by 2030, while operations for the first phase are anticipated to commence in 2028. Through East Coast Rail Link (ECRL), a double-track railway linking infrastructure project, which includes 20 stations, began in 2017, with 14 passenger stations, five combined passenger and freight stations, and one freight station.

Elimination of Diesel subsidies under discussions, in order to align retail fuel prices to align with market rates

• Starting in June 2024, Malaysia plans to eliminate diesel subsidies, allowing retail prices to align with the market rate of MYR 3.35 (USD 0.75) per litre, marking a 55% increase from MYR 2.15 (USD 0.48). Despite potential political consequences, this change is projected to have minimal impact on the country's inflation rate. In 2023, diesel subsidies amounted to MYR 14.5 billion (USD 3.28 billion), and the government anticipates saving approximately MYR 4 billion (USD 0.90 billion) annually through this Subsidy Rationalization. Diesel subsidies in the country amount to MYR 1 billion (USD 0.22 billion) monthly, with daily losses from leaks totaling MYR 4.5 million (USD 1.02 million).
• Diesel prices in Malaysia surged by over 50% in June 2024 as part of Prime Minister Anwar Ibrahim's efforts to reform the country's long-standing fuel subsidy system. The restructuring aimed to alleviate pressure on national finances by eliminating universal energy subsidies and focusing assistance on those most in need. This move also aims to address issues like the smuggling of subsidized diesel to neighboring countries, where it fetches higher prices.

Malaysia Courier, Express, and Parcel (CEP) Industry Overview

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