As demand for products in the e-commerce industry gains traction, logistic companies have been setting up integrated logistics centres around the world to ensure they are able to cope with this.

In Southeast Asia, the e-commerce market is one of the biggest in the world and is expected to reach US$1 trillion by 2030. With supply chain disruptions a big problem in the industry, integrated logistics centres in the region are enabling businesses to reach to customers faster, thanks to emerging technologies.

As such, the logistics and last mile delivey industry in Malaysia reached another milestone as J&T Express looks to build an integrated logistics centre for express distribution, logistics and transportation as well as warehousing to meet the growing business needs in Malaysia.

The 30-acre land, located in Selangor is expected to be fitted with advanced technology, enabling the international express logistics company to cater to the growing demands of the burgeoning e-commerce industry in the Southeast Asia region.

According to Charles Hou, Group Vice President of J&T Express, “as a global integrated logistics service provider, J&T Express is committed to providing customers with more efficient and convenient services. It remains our emphasis to strengthen our leadership position in Southeast Asia through expanding our presence in existing markets.”

For Roy Zeng, CEO of J&T Express Malaysia, this year marks the fifth year since J&T Express commenced operations in Malaysia. With diversified expansion and the strong momentum thanks to the continuous growth of the regional market, he added that the company had decided to invest RM 600 million to purchase a parcel of land and build a logistics centre in Malaysia.

“In doing this, we hope to drive the development of the local economy, provide jobs for the community, and play an active role in the development of the local logistics industry and the long-term development of the community,” commented Zeng.

Founded in 2015, J&T Express’ localised express network now spans twelve countries including China, Indonesia, Vietnam, Malaysia, Thailand, Philippines, Cambodia, Singapore, Saudi Arabia, and UAE.

Serving over two billion customers, J&T Express has also ventured into Latin America, specifically in countries like Brazil and Mexico. The logistics player is already a dominant player in that part of the world and could be spreading its services to other countries in Latin America in the future as well.

For now, the integrated logistics centre planned in Malaysia will enable them to become a dominant service provider in the region. While J&T focussed purely on logistics, it has numerous e-commerce partners that use their service around the region.

Apart from J&T Express, Alibaba also launched a regional logistics hub in Malaysia back in 2017 to cater to small and medium enterprises in the country.