Sustainability
Malaysia's Logistics Industry Aims for Global Competitiveness
Malaysia's logistics industry is setting ambitious goals to enhance its global competitiveness, with a focus on sustainability, innovation, and leveraging its strategic location at the heart of global trade routes.
The SCC MY Project: A Leap Towards Global Standards
The SCC MY project marks a significant step in elevating Malaysia's logistics sector to new heights. This initiative, in collaboration with Singapore's Supply Chain and Logistics Academy, aims to train local talent in automated systems, integrating Singapore's Learn ecosystem. Robert Yap, executive chairman of YCH Group, emphasized that SCC MY is poised to set new standards of logistics excellence in the nation. This project also aims to integrate sustainable solutions, such as installing solar panels across the facility's rooftop.
Datuk Seri Azmir Merican, Sime Darby Property group managing director and CEO, highlighted the project's potential to foster innovation and strengthen local supply chain infrastructure. The strategic vision for Malaysia is to become a top logistics hub within the ASEAN region, a goal supported by YCH Group's smart logistics hub in Klang, which enhances regional connectivity.
Emphasizing Sustainability and Innovation
Sustainability is a central focus in Malaysia's logistics industry, with efforts being made to reduce greenhouse gas emissions by 45% by 2030 and achieve net-zero by 2050. The New Industrial Master Plan 2030 underscores these sustainability goals, reflecting a wider governmental strategy that includes the Malaysia Digital Economy Blueprint and the National Fourth Industrial Revolution Policy.
PKT Logistics Group exemplifies the industry's commitment to sustainability, having transformed into a comprehensive logistics provider since its inception in 1974. The company actively champions environmental preservation through its PKT Green Action Plans, investing in solar-powered facilities and lean transportation practices. PKT also invests in industry-academia programs and upskilling initiatives via PenSkills, reinforcing the sector's resilience and adaptability.
In line with global sustainability standards, Malaysia's logistics industry is focused on implementing sustainable practices to enhance global competitiveness. This includes adopting renewable energy and AI-driven technologies, supported by government-led initiatives and rapid digital transformation.
Malaysia's Strategic Position and Economic Growth
Strategically located at the crossroads of global trade routes, Malaysia is well-positioned to leverage its advanced infrastructure, digital innovation, and sustainability-driven policies. The nation's logistics sector showcases resilience and adaptability, with the Malaysian Investment Development Authority (MIDA) approving 112 Integrated Logistics Services (ILS) projects worth RM13.36 billion as of December 31 last year.
Malaysia's GDP growth, recorded at 5.1% in 2024, further underscores the country's economic vitality. The FBM KLCI, despite a slight decrease of 1.3 points or 0.09%, maintains a current value of 1517.68, reflecting a stable financial market.
The country's logistics performance has seen significant improvements, climbing 15 spots to 26th place in the 2023 World Bank Logistics Performance Index. This progress is supported by strategic frameworks like the New Industrial Master Plan 2030 and the National Industry Environmental, Social, and Governance Framework (i-ESG), ensuring alignment with global ESG standards.
Incentives and Future Prospects
Malaysia offers an investment tax allowance of 60% on eligible capital expenditure incurred within five years through the ILS incentive tax scheme. Additionally, the Domestic Investment Accelerator Fund (DIAF) provides funding for SMEs to integrate sustainable and AI-driven technologies into their logistics operations.
Tasco Bhd, part of the NYK Group, is leveraging Malaysia's global connectivity and infrastructure for cost-effective distribution and fast service delivery. Such initiatives highlight the industry's focus on being technologically advanced and environmentally responsible.
As Malaysia's logistics industry continues to align with international sustainability standards, it aims to enhance its competitiveness on a global scale. Efforts are being made to improve efficiency and reduce environmental impact, with a push for innovation and technology adoption in the logistics sector.