Indonesia's J&T Express Acquires Land in Malaysia for Logistic Center
As the demand for products in the e-commerce business grows, logistic companies are establishing integrated logistics centers throughout the world to ensure they can keep up.
Southeast Asia's e-commerce market is one of the largest in the world, with a projected value of $1 trillion by 2030. With supply chain disruptions a major issue in the industry, integrated logistics centers in the region are allowing firms to reach customers more quickly, thanks to developing technologies.
As a result, the logistics and last mile delivery industry in Malaysia has attained another milestone, as J&T Express plans to construct an integrated logistics center for express distribution, logistics and transportation, as well as warehousing, to fulfill Malaysia's rising business needs.
The 30-acre area in Selangor is planned to be outfitted with innovative technology, allowing the international express logistics company to meet the expanding demands of the Southeast Asia region's burgeoning e-commerce industry.
"As a global integrated logistics service provider, J&T Express is committed to offering consumers with more efficient and convenient services," says Charles Hou, Group Vice President of J&T Express. Our focus remains on strengthening our leadership position in Southeast Asia by increasing our presence in existing areas."
This year marks the fifth year since J&T Express Malaysia began operations, according to Roy Zeng, CEO of J&T Express Malaysia. He added that the company had opted to invest RM 600 million to purchase a parcel of land and create a logistics center in Malaysia, owing to its diverse expansion and strong momentum as a result of the regional market's continuing growth.
"By doing so, we intend to stimulate the development of the local economy, offer jobs for the community, and play an active part in the development of the local logistics industry and the town's long-term development," Zeng explained.
J&T Express' specialised express network now encompasses twelve countries, including China, Indonesia, Vietnam, Malaysia, Thailand, the Philippines, Cambodia, Singapore, Saudi Arabia, and the United Arab Emirates.
J&T Express, which has over two billion subscribers, has also expanded into Latin America, notably Brazil and Mexico. The logistics player is already a prominent role in that region of the world and may expand its services to other Latin American countries in the future.
For the time being, the integrated logistics center planned in Malaysia will allow them to become the region's main service provider. While J&T focuses solely on logistics, it has a large number of e-commerce partners who employ their services around the region.
Aside from J&T Express, Alibaba established a regional logistics hub in Malaysia in 2017 to serve the country's small and medium-sized businesses.