Question

In: Economics

As a transporter, an end consumer or both, evaluate the e-commerce logistics in Malaysia. (30 Marks)...

As a transporter, an end consumer or both, evaluate the e-commerce logistics in Malaysia.

Would really appreciate if you do not copy paste your answers from other sources and do use your own words and answer according to the marks requirement.

Solutions

Expert Solution

E-commerce logistics in Malaysia- The e-commerce industry has being booming since the last decade in Malaysia which has caused many logistics company to expand their business and this on the other side also helped the end consumers to depend more on e-commerce and utilitize the advantages of e-commerce to the fullest.

The promising logistics service has encouraged many e-commerce companies to establish their e-fulfillment hubs in Malaysia.

The Malaysian investment development authority (MIDA) which is under National e-commerce strategic roadmap intends to make Malaysia as the regional e-fulfillment hub. MIDA plays a key role in helping the logistic companies to expand their business and build enhance thier capabilities in the operation e-fulfillment hubs to manage the needs of e-commerce industry.

MIDA also helps logistics companies to invest in robotics,virtual and physical ICT systems and getting better technology to get better control over their business like for example- using better Tracking system to know the real time delivery process.

In 2002 MIDA developed an incentive scheme which was named as Integrated logistics services (ILS) to work in an integrated manner by offering 3 principal activities which were-

i) warehousing.   

ii) freight forwarding

iii) transportation , all under 1 entity.

Since 2002 many logistics companies have utilized this incentive scheme to expand their businesses and MIDA has also approved over 90 companies under ILS scheme.

MIDA introduced an extension scheme in 2017 which was an extension to the ILS introduced in 2002, under this incentive scheme the emphasis was more on use of technology,to make the companies adopt latest technology to enhance thier services, in 2018 the MIDA approved over 8 e-fulfillment projects among these 8, 7 of them are locally owned.

Hope this helps.


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