The investment, from the German-based division of global logistics company Deutsche Post DHL Group, includes a 48,000-square foot distribution centre in Puchong, depots in other critical urban areas such as Penang, Johor Bahru, Cheras and Puchong, and a fleet of 2-wheel and 4-wheel vehicles.
According to a press release, DHL’s end-to-end domestic delivery solutions will offer pick-up services, track and trace, reverse logistics, cash on delivery with daily remittance and call centre capabilities for deliveries within Malaysia. DHL aims to provide timely delivery and predictive, secure delivery, it said in a statement.
“E-commerce has become a way of life for Malaysians, with 47% already using their smartphones to shop online,” said Malcolm Monteiro, CEO, Asia Pacific, DHL e-Commerce.
“Approximately 7 million are already shopping online every month, and with the industry expected to grow to €1bn by 2020 in Malaysia and globally to $1trn in the same year, businesses need high-quality logistics solutions to leverage this immense growth and meet the rapidly changing needs of online shoppers. This makes the need for a tailored e-commerce delivery service greater than ever before.”
The Malaysian government has more recently been driving e-commerce growth through schemes such as the National E-commerce Strategic Roadmap and the new Digital Free Trade Zone, added Monteiro.
“Logistics is a key component of this ecosystem, and e-commerce is a vital component of the growth agenda, so we will continue to invest in e-commerce here and worldwide,” he said.
The Malaysia debut comes as DHL continues to expand its reach in Asia. In March, the company opened a new Fulfillment Centre in Hong Kong, adding to its global fulfillment network in U.S, Mexico, India, Europe and Australia.
Elsewhere, in December 2016, the firm launched DHL Express Thailand, in a bid to capitalise on the nation’s growing e-commerce business.