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Logistics services

Logistics services

Logistics Services

 

1. Integrated Logistics Services

 

Logistics is a service driver for all forms of trade and distribution activities and has seen positive growth in recent years. Integrated Logistics Services (ILS) refers to companies engaged in various end-to-end logistics-related service activities such as air, sea, road and rail transportation, warehousing and other value-added services that constitute the entire logistics service package.

 

 

Main activities involved:

  • Warehousing
  • Transportation
  • Freight Forwarding
  • Delivery
  • Other value-added services (e.g., bulk breaking, palletizing, labeling, etc.)

 

ILS Eligibility Criteria

  • 60% Local Registration
  • 3+1 = Main activities (Warehousing, Transportation, Freight Forwarding) with at least Delivery/Supply Chain Management or other related value-added logistics services/activities

Possessing the following minimum infrastructure:

  • 20 commercial vehicles
  • 5,000 m² warehouse space

 

Electronic Documentation

The explosive growth of e-commerce has prompted logistics companies in Malaysia to undergo a series of digital developments in their operations, resulting in the formation of seamless electronic documentation centers in Malaysia to effectively serve global supply chain activities.

 

Cold Chain Logistics

Cold chain logistics is the transportation and storage of temperature-sensitive products through thermal and refrigerated packaging.

 

Future Trends in Logistics

Given the explosive growth of Industry 4.0 technologies in the region, Malaysia's logistics industry is well-positioned to leverage the evolving digital landscape.

Today's online consumers not only have high expectations for service quality and flexibility, but also demand unique and personalized options. Therefore, digitalization is not a choice for the logistics industry. Many logistics companies are currently applying elements such as automation, robotics, Internet of Things (IoT), big data analytics, cloud computing and in-house software systems to their daily operations to stay ahead and meet the needs of domestic and international customers.

 

2. International Integrated Logistics Services

 

International Integrated Logistics Services (IILS) status refers to logistics companies that are able to provide integrated and seamless logistics services (door-to-door) along the value chain as a single entity, regionally or globally.

Eligible companies can apply for IILS status, and upon approval, the company will receive a freight forwarding/customs broker license issued by the Royal Malaysian Customs Department.

In 2019, a total of 29 companies were approved for IILS status, with a total investment of RM 244.66 million, creating over 1185 job opportunities.

 

  IILS Eligibility Criteria

  • 100% Foreign Equity Ownership
  • 3 + 1 = Main activities (Warehousing, Transportation, Freight Forwarding) with at least Delivery/Supply Chain Management or other related value-added logistics services/activities
  • Managing at least:

o 20 commercial vehicles

o 5,000 m² warehouse space

  • Employing a majority of Malaysians
  • Positioning Malaysia as a hub for logistics supply chain services
  • Extensive use of ICT infrastructure

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