Don’t leave rural areas behind in the e-commerce wave

Free Malaysia Today

While e-commerce has propelled the logistics industry in cities and towns, many rural areas remain underserved.  Read More:  https://www.freemalaysiatoday.com/category/highlight/2023/10/16/gaps-and-misses-in-billion-ringgit-logistics-industry/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: http://bit.ly/2Rn6xEV Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on Twitter: http://bit.ly/2OCwH8a  Follow FMT on Instagram: https://bit.ly/2OKJbc6 Follow FMT on TikTok : https://bit.ly/3cpbWKK Follow FMT Telegram - https://bit.ly/2VUfOrv Follow FMT LinkedIn - https://bit.ly/3B1e8lN Follow FMT Lifestyle on Instagram: https://bit.ly/39dBDbe ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTBusiness #ECommerce #3PL #logistics

Transcript

00:00 Third-party logistics providers play a crucial role in bolstering the Malaysian economy

00:04 by facilitating e-commerce, fostering connections between sellers and customers,

00:08 and unleashing economic prospects, particularly for rural communities.

00:28 In 2019, as reported by the Malaysian Investment Development Authority,

00:32 the logistics sector made a 3.8% contribution to the country's gross domestic product,

00:37 with 3PL emerging as a category within this industry.

00:40 In July, Communications and Digital Minister Fahmy Fadil, quoting DOSM's ICTSA data,

00:47 said e-commerce's share of Malaysia's GDP surged from 11.6% in 2020 to 13% in 2021.

00:54 However, despite its potential and spillover benefits, the sector is punching below its weight,

01:00 given that many areas in the country remain underserved because of inadequate infrastructure.

01:04 That said, many businesses have benefited from the 3PL and e-commerce boom,

01:09 one of which is LC With Love, a company co-founded by siblings Ryan and LC Fund.

01:14 Logistic companies were offering many solutions and better rates for SMEs like us.

01:21 From there, we were able to tap into the international market,

01:24 and now we can find our products sold in many parts of the world.

01:27 Similarly, in Kota Bharu, Wawan Faiz took his decade-long business into e-commerce in 2018,

01:34 navigating both challenges and successes along the way.

01:48 Notably, it's not just businesses that reap the rewards.

01:52 Undergraduate Armin Shahmi is part of the burgeoning group of over 100,000 delivery riders in Malaysia,

01:57 a majority of whom are below the age of 30.

02:00 But the full potential of e-commerce has yet to be unleashed,

02:16 because not all 3PLs can operate in the more rural or remote areas in Malaysia

02:20 due to limited access costs by poor infrastructure.

02:24 Claudia Vika lives in Kampung Sutong, which is about 10km away from Sri Amantan in Sarawak.

02:30 Unfortunately, delivery services do not cover her area.

02:34 This means she needs to drive all the way to the post office in Sri Amantan

02:38 just to pick up the items she ordered.

02:40 Claudia longs for a simple convenience,

02:42 having the things she orders online delivered directly to her home.

02:45 Similar to how many people throughout the country experience.

02:48 To translate such aspirations into reality,

02:52 logistics analyst Stella Ong of Sunway University said

02:54 there need to be policies that can stimulate and encourage the growth of the 3PL industry.

03:13 In the booming billion ringgit e-commerce and 3PL sectors,

03:16 innovation and policy are key to narrowing the rural-urban gap in Malaysia.

03:21 Jason Desmond, FMT Business.

03:24 [BLANK_AUDIO]

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