KUALA LUMPUR – Global shipping and logistics company United Parcel Service (UPS) is set to expand its retail presence in Malaysia this year, amid a boom in e-commerce, by partnering with ParcelHub.
Matt Parkey, president for South Asia, said UPS has seen e-commerce, parcel delivery and logistics management skyrocketing in the last 12 months with demand at an all-time high, and so, the United States company is ready to capitalise on these trends and leverage ParcelHub’s 200 outlets.
At present, UPS is in a partnership with retail courier Mail Boxes Etc, which has more than 90 outlets across the country.
“Notwithstanding the near-term impact of the Covid-19 resurgence, Malaysia has strong long-term growth fundamentals, and these fundamentals bode well for many small and medium enterprises that support industries along the value chain,” Parkey told Bernama.
“UPS’ focus now is on improving the resiliency of SMEs and their access to global markets. The pandemic has exposed vulnerabilities in supply chains, and SMEs have been one of the worst-hit sectors.
“Throughout the past year, we’ve helped many traditional businesses pivot online to reach new audiences amid tightening domestic demand and physical store closures.”
He said SMEs make up 98.5% of businesses in Malaysia, and that they are the cornerstone of the country’s economy and their prosperity is critical to a broader recovery.
Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus last month revealed that the online retail sales index averaged at 33% between March and December last year versus 22% at the start of 2020.
A survey on Covid-19 found that 57% of Malaysians are shopping online more than they ever did prior to the health crisis, leading to an unprecedented boom in online shopping.
On the exports sector, citing an Oxford Economics forecast, Parkey said it will boost Asean-6 economies this year, with Malaysia’s economy bolstering its value-added manufacturing capabilities to take advantage of supply chain shifts.
Elaborating on the nation’s economic landscape, he said Malaysia has made inroads in electrical and electronic products, its top export earner in 2020.
“More than 50 semiconductor companies have investments in Malaysia, including the likes of Intel and AMD. Lam Research, a US company that designs and manufactures semiconductor-processing equipment, recently added Penang to its list of global production locations, which include the US, South Korea and Austria.
“The next step now is to make sure that businesses are prepared to seize new opportunities in this changing landscape.
“On our part, we have implemented customised solutions for businesses of any size. For example, to boost Malaysia’s electronics manufacturing, we’ve developed capabilities to move expensive semiconductor shipments halfway around the world with almost zero sorting, so as to move quickly and eliminate damage.”
On the rising needs of medical and vaccine deliveries worldwide, he said Penang has gained a reputation as a hub, churning out cardiovascular products and orthopaedic implants, and this reflects the country’s standing as an important node for healthcare manufacturing.
UPS has invested in a freezer farm at its Singapore distribution centre to ramp up the ultra-cold storage capacity there, in support of the republic’s aspirations to be a Covid-19 vaccine distribution hub for Southeast Asia.
“Singapore is UPS’ regional hub in the Asia Pacific and a key location in our smart global network. The country is also a healthcare distribution hub for global pharma players. Here, UPS supports vital med tech and pharmaceutical manufacturing that is critical to the entire global supply chain,” said Parkey.
“This extends beyond simply transportation to include the management of our customers’ regional distribution centres, support for the global supply chain for the manufacture of healthcare products, intermediates and finished goods, as well as enabling our customers to innovate and optimise.” – Bernama, June 20, 2021
