Chinese Logistics Firm Launches Operations in Malaysia as Part of SEA Expansion

Jul 2020

BEST Inc (“BEST”), a Chinese integrated smart supply chain solutions provider, backed by the Alibaba Group, is launching its services in Malaysia as part of its expansion into South East Asia. The company is also entering into Singapore and Cambodia. It entered into Thailand and Vietnam last year and is looking to enter Indonesia and the Philippines in the near future.

The firm also plans to elevate its international logistics solutions by launching cross-border services between China and the five markets in Southeast Asia and by hiring up to 40,000 people in the region. As part of its long-term strategy, BEST also expects to provide additional services in the region, including supply chain management, freight delivery, and truckload capacity brokerage. BEST Inc Founder and Chairman Johnny Chou said its technology-enabled logistics services and high-quality express delivery options will be a critical service component for merchants and consumers due to the impact of COVID-19 pandemic, which has accelerated and amplified consumers’ reliance on e-commerce and created even larger potential opportunities in the region.

In Malaysia, the company plans to operate a total of seven sorting centers and 270 service stations across West and East Malaysia within three years. It intends to develop a total of twelve sorting centers and around 400 service stations across Malaysia, Cambodia and Singapore over the next three years. This includes two customized flagship sortation centers in Kuala Lumpur and Phnom Penh that will be equipped with automation equipment, such as high-speed automatic sorting lines and dimension-weight-scanning systems.

The e-commerce sector in the South East Asian region is expected to reach gross merchandise value of USD 150 billion in value by 2025, almost tripling from USD 38 billion in 2019, according to a study published by Google, Temasek and Bain & Company. This is driving growth in the logistics sector.  BEST is offering next-day delivery options for major areas of Thailand and same-day deliveries in Ho Chi Minh City and Hanoi in Vietnam. The company’s total parcel volume from South East Asia reached 8.8 million parcels in the first quarter of 2020.

(Sources: BEST Inc; The Star Online; The Edge Markets; ASEAN Post)

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