Business

MCMC imposes two-year freeze on new courier service permits

The decision follows a call by an industry group representing 25 major courier companies

Updated 5 years ago · Published on 26 Oct 2020 12:30PM

MCMC imposes two-year freeze on new courier service permits
As of this month, there are 109 courier service licence holders, including POS Malaysia, operating in Malaysia. – Bernama pic, October 26, 2020

KUALA LUMPUR – The Malaysian Communications and Multimedia Commission (MCMC) has decided to impose a two-year moratorium on the issuance of new courier service permits, effective September 14 this year until September 15, 2022.

MCMC, in a statement today, said the decision was made with the consent of Communications and Multimedia Minister Datuk Saifuddin Abdullah, through the licensing authority of the Postal Services Act 2012 and it can be reviewed at any time if needed.

Therefore, MCMC will not accept any new licence applications for all categories of courier services during this time.

“The moratorium is implemented to make way for the government, together with the postal and courier industry to formulate new plans to strengthen the sector which faces various challenges due to technological changes and market trends.

“The move is also inline with the call made by the Association of Malaysian Express Carriers (AMEC), which represents 25 major courier companies in the country including Pos Malaysia Berhad, GD Express, GD Express Sdn Bhd, City-Link Express (M) Sdn Bhd, in August,” the statement said.

However, MCMC said new licence applications and renewals received before the moratorium comes into effect would be processed as usual for approval.

As of this month, there are 109 courier service licence holders in various categories operating in Malaysia.

The statement also said that the process of drafting a new action plan will be implemented through the National Postal and Courier Industry Laboratory (NPCIL) which will take place for three weeks, from November 2 to 22, subject to the implementation of the conditional movement control order.

“The full report containing the proposed action plan to support the strategic development of the new postal and courier industry will be uploaded on the MCMC website.

“The NPCIL outcome is important as the industry serves as the core of e-commerce activities and digital economy development which is now facing various new challenges,” it said adding that the last study on the postal and courier industry was conducted in 2009. – Bernama, October 26, 2020

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