KUALA LUMPUR: The Malaysian logistics industry is expected to grow 9.5% to RM139.74 billion in 2013 as compared to an estimated RM127.66 billion a year ago, says Frost & Sullivan, a global research and consultancy firm.
The global research company said in a statement yesterday that the strong sustainable economic growth in Malaysia despite global economic slowdown and strong intra-Asian trade, is the key reason to induce the proposed growth in the local logistics industry.
Frost & Sullivan vice-president for transport and logistics practice, Gopal Ramasubramaniam, said the government’s continuous support for the industry would also drive growth in the logistics industry.
Gopal said that external trade for Malaysia remains resilient and is expected to increase 6.5% to RM1.42 trillion in 2013 as compared with RM1.34 trillion in 2012.
“Growth of the country’s external trade signifies the growth of the transport and logistics industry especially for import and export forwarding, air freight and ocean freight-related businesses,” Gopal said.
He said the positive outlook on foreign direct investment inflows is expected to drive the transportation and logistics market.
Gopal noted that there will be a few large projects in the oil and gas and infrastructure space commencing in Malaysia starting 2013.
He said Malaysia’s total exports for the 10 months of 2012 increased 1.1%, while total imports grew 7.4% as compared to 2011 while trade with Asean countries account for 27.4%.
“Exports to Asean increased by 10.1%, while imports grew by 7.5% despite the challenging global trading environment,” he added.
The logistics industry is forecast to grow at a compound annual growth rate of 10.2% to reach RM207.4 billion in 2017, Gopal said.
Meanwhile, Gopal forecast Malaysia’s total cargo volumes (air, rail and sea) to grow moderately at 5%, reaching 530.67 million tonnes in 2013 as compared to 505.26 million tonnes in 2012.
He said total cargo volume by sea is expected to grow 5% to 523.3 million tonnes in 2013 and the total cargo throughput in 2012 stood at 498.2 million tonnes.
Cargo volume by rail is expected to increase to 6.47 million tonnes in 2013 as compared to 6.16 million in 2012.
Air freight market has been impacted by recent global economic slowdown, as such, he estimated air cargo volume to increase minimally at 1.1% to 900,000 tonnes in 2013.