Mapping Malaysia's Resource Centres

14 Port, Logistics and Courier The Malaysian logistics industry possesses the complete chain of service providers, comprising maritime, land, air and integrated logistics. Furthermore, Malaysia is equipped with world-class ports, airports, road and rail networks, industrial parks and technology parks. Due to its strategic location along one of the busiest shipping routes (the Straits of Malacca), Malaysia has successfully developed its seaports and has become an important transhipment hub for Asia through Port Klang and the Port of Tanjung Pelepas. On the other hand, KLIA and Senai Airport are considered Malaysia’s key air cargo airports with the support of economic corridors: Iskandar Malaysia in Southern Johor (IRDA); Northern Corridor Economic Region (NCER) and East Coast Economic Region (ECER). Given its strategic location, steady economic growth, regional linkages, and strong transport infrastructure, Malaysia has the essentials to position itself as a regional logistics gateway. The logistics industry in Malaysia encompasses multimodal modes which includes commercial vehicles and rail, water and air transport in addition to postal and courier services. Malaysia’s key strengths that favour the country as a key logistics link to Asia are its strategic geographical location, regional supply chain linkages and strength of transportation services. Malaysia is situated amidst countries that account for 30 percent of total global GDP. This includes ASEAN countries, China, India, Japan and Korea, all of which are accessible within a six-hour flight time. Major multinational companies have also recognised Malaysia’s key strengths, electing to establish regional offices and manufacturing plants in the country. Among them are BMW, Dell, IBM, Keppel Corporation, Microsoft, Samsung, Schlumberger, Seagate, Siemens, Temasek Holdings, Toyota and Western Digital. These companies, which are part of the global supply chain, are able to drive higher demand for efficient logistics services. Regional supply chain linkages are expected to grow stronger with the Government’s proactive efforts to attract investments through continuous bilateral and multilateral initiatives.