In wake of DFTZ, DHL taps Malaysia's 'booming eCommerce' sector


DHL eCommerce in Malaysia

Photo - Launch of DHL eCommerce arm in Malaysia


  Following the Malaysian government's recent launch of the Digital Free Trade Zone (DFTZ) with Alibaba's Jack Ma, German-headquartered logistics company DHL has launched its domestic delivery service in Malaysia.

During the DHL's announcement event in Kuala Lumpur, Malcolm Monteiro, CEO, Asia Pacific chief executive officer of DHL eCommerce (part of Deutsche Post DHL Group), explained: "eCommerce has become a way of life for Malaysians, with 47 percent already using their smartphones to shop online."

"About 7 million are already shopping online every month, and with the industry expected to grow to EUR 1 billion by 2020 in Malaysia [a CAGR of 15.8 percent] and globally to US$1 trillion in the same year, businesses need high-quality logistics solutions to leverage this immense growth and meet the rapidly changing needs of online shoppers," said Monteiro.

The growth in Malaysia has received boosts by recent initiatives such as the National eCommerce Strategic Roadmap, DFTZ and the Economic Transformation Programme. National ICT agency Malaysia Digital Economy Corporation (MDEC) chief executive officer Dato' Yasmin Mahmood and Alibaba's Jack Ma recently delved into Malaysia's eCommerce potential.

"This all makes the need for a tailored eCommerce delivery service greater than ever before," Monteiro continued, adding that local online retailers will also benefit from DHL's range of cross-border shipping and fulfilment network.

How DHL's eCommerce portfolio will work

He detailed some of the moves behind the company's eCommerce drive. The investment in Malaysia includes a 48,000 sq. ft. central distribution hub in Puchong as well as depots in Penang, Johor Bahru, Cheras and Puchong and a fleet of 2-wheel and 4-wheel vehicles.

This fleet of vehicles will provide next-day delivery to all urban areas in Klang Valley, Penang and Johor Bahru, and two to four day delivery to all other locations across West Malaysia and East Malaysia, said Monteiro.

 In addition, the company's new eCommerce portfolio of end-to-end domestic delivery solutions offers pick-up services, track and trace, reverse logistics, cash on delivery with daily remittance and call centre capabilities for deliveries within Malaysia.
How else will Malaysian e-tailers benefit? Monteiro said DHL's global logistics infrastructure covers more than 220 countries and territories, which will help connect local online commerce to buyers across the globe.

"The world's fastest growing eCommerce region is Asia Pacific, and Malaysia is one of the most exciting countries with enormous opportunities," he added. "To win in this space, e-tailers need exceptional customer service supported by seamless and agile logistics. Through our investments, infrastructure and renowned global network, we are well positioned to support the domestic and global growth of local online retailers in Malaysia."

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