Malaysia Freight And Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The Malaysia Freight And Logistics Market size is estimated at 29.7 billion USD in 2025, and is expected to reach 38.28 billion USD by 2030, growing at a CAGR of 5.20% during the forecast period (2025-2030).

Growing economic stability along with investment opportunities leading to freight demand in the country

• In June 2024, Malaysia enhanced its trade connectivity with South-East Asia and China by launching the Asean Express, an international freight train linking Malaysia to Thailand, Laos, and China. This service connects several inland ports, including the Kontena Nasional Inland Clearance Depot in Selangor, Perlis Inland Port, Latkrabang Inland Port in Thailand, and Thanaleng Dry Port in Laos. The train significantly reduces transit times, taking just nine days from Selangor to Chongqing, compared to the usual 14 to 21 days by sea.
• According to the Ministry of International Trade and Industry (MITI), the maritime and shipbuilding and ship repairing (SBSR) industries had the highest value of exports to the United States, followed by Indonesia and the United Arab Emirates. Moreover, in April 2023, the Malaysian government announced its plan to construct a port for RM 28 billion (USD 6.34 billion), scheduled to be completed by 2060. This initiative aims to enhance the handling capacity for both container and conventional cargo at Port Klang to 36 million TEUs in 2060 from 13.2 million TEUs in 2022.

Malaysia Freight And Logistics Market Trends

Malaysia's transportation and storage sector experienced 33% YoY growth in 2022, despite USD 7.25 million FDI deficit

• The Belt and Road Initiative is driving Malaysia's infrastructure growth. The East Coast Rail Link (ECRL) seeks to improve connectivity between Kelantan, Terengganu, and Pahang in the East Coast with Negeri Sembilan, Selangor, and Putrajaya in the West Coast. These areas currently lack complete railway connections. The ECRL is forecasted to boost Malaysia's economic growth by up to 2.7%. Furthermore, two decades after its construction, Malaysia's economic growth is expected to reach 4.6%. The ECRL project is set to finish by December 2026 and is expected to start operating in January 2027.
• The MRT3 is the last critical route to complete the Kuala Lumpur urban rail network; the line is 50.8 km long and runs around Kuala Lumpur's outskirts. Its construction began in early 2023 and is slated for full completion by 2030, while operations for the first phase are anticipated to commence in 2028. Through East Coast Rail Link (ECRL), a double-track railway linking infrastructure project, which includes 20 stations, began in 2017, with 14 passenger stations, five combined passenger and freight stations, and one freight station.

Elimination of Diesel subsidies under discussions, in order to align retail fuel prices to align with market rates

• Starting in June 2024, Malaysia plans to eliminate diesel subsidies, allowing retail prices to align with the market rate of MYR 3.35 (USD 0.75) per litre, marking a 55% increase from MYR 2.15 (USD 0.48). Despite potential political consequences, this change is projected to have minimal impact on the country's inflation rate. In 2023, diesel subsidies amounted to MYR 14.5 billion (USD 3.28 billion), and the government anticipates saving approximately MYR 4 billion (USD 0.90 billion) annually through this Subsidy Rationalization. Diesel subsidies in the country amount to MYR 1 billion (USD 0.22 billion) monthly, with daily losses from leaks totaling MYR 4.5 million (USD 1.02 million).
• Diesel prices in Malaysia surged by over 50% in June 2024 as part of Prime Minister Anwar Ibrahim's efforts to reform the country's long-standing fuel subsidy system. The restructuring aimed to alleviate pressure on national finances by eliminating universal energy subsidies and focusing assistance on those most in need. This move also aims to address issues like the smuggling of subsidized diesel to neighboring countries, where it fetches higher prices.

Malaysia Freight And Logistics Industry Overview

The Malaysia Freight And Logistics Market is fragmented, with the major five players in this market being DHL Group, FedEx, J&T Express, MMC Corporation Berhad and NYK (Nippon Yusen Kaisha) Line (sorted alphabetically).

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