FRIDAY, SEPTEMBER 15, 2017, NANNING: The Malaysia External Trade Development Corporation has inked a Memorandum of Understanding with China Post Group of Guangxi Zhuang Autonomous Region Branch and KCO Logistics & Distribution Services Sdn Bhd to develop a virtual Malaysia Pavilion dedicated to Malaysian brands on China Post’s eCommerce portal called ule.com.
ule.com is an eCommerce platform by China Post that connects the offline outlets with online and mobile services, supported by China’s Post’s extensive logistics network. Through the MoU, China Post provides the online and offline platforms while KCO Logistics - a Malaysian logistic company based in Guangxi - will be the logistic provider for China Post.
The MoU was signed by MATRADE’s Chief Executive Officer (CEO), Ir. Dr. Mohd Shahreen Zainooren Madros on 14 September 2017 with Mr. Li Taile, CEO of Guangxi Post and Mr. Andy Oon, Managing Director of KCO Logistics during the ASEAN E-Commerce Summit during the China-ASEAN Expo 2017. The ceremony was witnessed by YB Dato’ Seri Ong Ka Chuan, Minister II of International Trade and Industry, Mr Zhang Rong, Vice President of China Post Group as well leaders from ASEAN and China. The historic MoU will mark a 3-year collaboration between the parties involved.
The establishment of the virtual Malaysia Pavilion on ule.com will see a commitment by China Post to import 2,000 Single Kind Units (SKUs) of Malaysian products for one year valued at around RM300 million. These products range from food products, health & wellness products to Fast Moving Consumer Goods. Apart from being showcased on the virtual pavilion, the products will also be made accessible to 600,000 of China Post’s offline stores around the cities in China. Among the Malaysian brands to be featured through the collaboration are Julie’s, Regency Coffee and Furley, among others.
According to Dr. Shahreen, MATRADE will continue to explore various platforms, especially eCommerce platforms, to facilitate the entry of Malaysian products into China, which has a market size of 1.35 billion people. “This MOU will pave the way for products by Malaysian Small and Medium Enterprises (SMEs) to be marketed on China Post‘s vast online and offline networks. MATRADE is grateful for the strong support from China Post and KCO Logistics in realising this initiative,” he said.
He added that MATRADE, through its offices in China, will specifically assist to promote Malaysian enterprises on the platforms and identify quality Malaysian brands and products as well as to facilitate organising business matching sessions and sourcing programmes for the Malaysian companies.
Mr. Li of China Post remarked that this arrangement is another milestone for China and Malaysia’s bilateral relationship and it is in line with the Belt and Road initiative championed by President Xi Jinping’s administration. Mr Andy On, Managing Director of KCO Logistics mentioned, “I am proud that I could contribute to my country and together with MATRADE, I will strive to ensure that more Malaysian products will find its way into the huge China market.”