Malaysia Freight and Logistics Market Report 2026-2031: FDI-Driven Manufacturing Output Revolutionizes Industrial Logistics

Opportunities lie in last-mile delivery innovations, automated warehousing, and cross-border logistics, with growing demand for specialized and temperature-controlled services


Dublin, Jan. 22, 2026 (GLOBE NEWSWIRE) -- The "Malaysia Freight and Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The Malaysia freight and logistics market is on a robust growth trajectory, projected to expand from USD 29.70 billion in 2025 to USD 40.11 billion by 2031, at a CAGR of 5.14% from 2026-2031. Key drivers include Port Klang's emergence as the 10th-busiest global container port and significant government investments in rail and highway projects. Additionally, the surge in e-commerce continues to reshape supply-chain frameworks, enhancing warehouse automation and fostering innovative carrier partnerships.

Foreign direct investment, which reached MYR 378.5 billion (USD 82.3 billion) in 2024, is sparking job creation and expanding demand for cross-border forwarding, distribution, and specialized logistics. The preference for same-day delivery among consumers is further driving last-mile network enhancements. Regulatory initiatives like diesel subsidies and streamlined customs processes are reducing costs and border complexities. International carriers are strengthening local partnerships, enhancing Malaysia's position in the ASEAN and wider Asia-Pacific trade network.

Explosive B2C E-commerce Fuels Last-Mile Innovation

As same-day delivery expectations rise, platforms are moving towards achieving 95% order fulfillment within 24 hours. With 64.8% of internet users leaning towards free delivery, the logistics sector is adopting automated sortation, micro-fulfillment centers, and efficient route planning. Retailers like MR DIY have achieved significant efficiency gains with robotic systems, highlighting automation's role in competitive advantage. Strategic partnerships such as UPS-Ninja Van are widening access to express services, aiding SMEs in regional trade and enhancing market growth.

FDI-Driven Manufacturing Output Revolutionizes Industrial Logistics

Record investments in semiconductor fabs and automotive components are increasing the demand for secure logistics solutions, including electrostatic-discharge-compliant packaging and streamlined warehouse clearances. Special economic zones like Johor-Singapore are expected to create new projects and jobs, reinforcing regional connectivity. Environmental criteria are increasingly influencing investment decisions, with a focus on multimodal solutions and proximity to renewable energy sources.

Port Challenges and Infrastructure Investments

Despite infrastructure investments, Port Klang faces vessel waiting times averaging 1.3-1.46 days, challenging schedule reliability. The Malaysia Maritime Single Window initiative has reduced documentation processing times, but quay expansions lag behind demand. Expansion plans by Westports Holdings aim to significantly boost capacity; however, arrival bunching and yard overflow continue to pose challenges.

Other Market Drivers and Restraints:

  • Government Mega-Projects Enhancing Regional Connectivity
  • RCEP Integration Bolstering Intra-ASEAN Trade
  • Driver Shortages Affecting Operational Scalability

Segment Analysis

Manufacturing dominates the market, supported by Penang's substantial export engine and Selangor's electronics clusters. Growth in EV components and renewable energy equipment highlights the demand for specialized logistics solutions. The wholesale and retail trade segments are poised for growth at a 5.46% CAGR amidst increasing disposable incomes and digital payment adoption.

Agricultural and fishing sectors are capitalizing on halal cold chains to access Middle-Eastern markets, increasing reliance on temperature traceability platforms. Meanwhile, mega-projects in construction and energy are fostering demand for heavy-lifting logistics.

Freight transport, representing 55.62% of market revenue, enjoys robust manufacturing export flows, while courier and parcel solutions are projected to grow faster, driven by e-commerce outsourcing. Advanced technologies are helping streamline operations, although diesel subsidy reductions may present future challenges.

Essential companies covered in this report include DHL Group, FedEx, UPS, and numerous local and regional players. Purchase of the report provides additional benefits, such as access to market estimations and analyst support.

Key Topics Covered:

  1. Introduction
    • Study Assumptions and Market Definition
    • Scope of the Study
  2. Research Methodology
  3. Executive Summary
  4. Market Landscape
    • Market Overview
    • Economic Performance and Profile
    • Market Drivers
    • Market Restraints
    • Porter's Five Forces Analysis
  5. Market Size and Growth Forecasts (Value, USD)
    • End User Industry
    • Logistics Function
  6. Competitive Landscape
    • Market Concentration
    • Key Strategic Moves
    • Market Share Analysis
    • Company Profiles
  7. Market Opportunities and Future Outlook

A selection of companies mentioned in this report includes, but is not limited to:

  • City-Link Express
  • CJ Logistics Corporation
  • DHL Group
  • DSV A/S (Including DB Schenker)
  • FedEx
  • FM Global Logistics Holdings Bhd
  • GDEX Group
  • Hellmann Worldwide Logistics
  • Hextar Technologies Solutions Bhd
  • J&T Express
  • Keretapi Tanah Melayu Bhd
  • Kuehne+Nagel
  • MMC Corporation Bhd
  • NYK (Nippon Yusen Kaisha) Line
  • POS Malaysia Bhd
  • SF Express (KEX-SF)
  • SkyNet Worldwide Express, Inc.
  • Taipanco Sdn Bhd
  • Tiong Nam Logistics Holdings Bhd
  • Transocean Holdings Bhd
  • United Parcel Service of America, Inc. (UPS)
  • Xin Hwa Holdings Bhd

For more information about this report visit https://www.researchandmarkets.com/r/fzvusf

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