TIE-UP WITH LAZADA TO BOOST POS MALAYSIA
Companies to develop e-commerce regional distribution centre in Sepang
POS Malaysia’s foray into the international logistics business will take off at a faster pace following a collaboration with online shopping platform Lazada to develop an e-commerce regional distribution centre in Sepang.
Pos Malaysia group chief executive officer (CEO) Datuk Mohd Shukrie Mohd Salleh described the tie-up as seamless as it could provide end-to–end solutions.
“With the facilities we have — aircraft, ground handling facilities and Pos Malaysia international hub — plus Lazada providing the e-commerce, handling of items and training, we should be the perfect partners,” he said at the signing of a memorandum of collaboration, here, yesterday.
The collaboration was signed by Shukrie and Lazada Malaysia CEO Hans-Peter Ressel.
Shukrie said the regional development centre at the old lowcost carrier terminal (LCCT) in Sepang would be renovated next week and the first phase of the 330,000 sq feet space should be ready by the end of August.
The second phase is targeted for completion by the end of the year.
As Malaysia Airports Holdings Bhd had allocated 430,000 sq feet for warehouse facilities at the centre, Shukrie said the remaining space would be used for other express handling and cross-docking requirements.
“A total of RM120 million will be spent on the overall development of the old LCCT. For the first phase of development of the regional development centre with Lazada, we will be spending RM60 million.”
Shukrie said some 34 million items would move through the warehouse next year and the number would increase to 62 million in 2019.
The regional development centre, which has the capacity to handle 182,000 tonnes annually, marks Pos Malaysia’s long-term strategy to be an end-to-end integrated logistics provider.
It acts as a one-stop centre by providing value-added services such as air-sea-land transportation solutions, international transshipment, postal and courier services and warehousing facilities.
Shukrie said the global e-commerce market had the capacity to grow by US$200 million (RM865 million) annually.
“We used to focus on domestic e-commerce but with this collaboration, it will change the way Pos Malaysia has done business over the years.”
Ressel said the business-toconsumer collaboration would enable the Malaysia’s small and medium enterprises to tap global business.
Lazada is targeting the regional development centre to be a regional hub for businesses, including those from China.
He said although the return on investment (ROI) from the collaboration might be hard to quantify, the growth of the industry on the ground would be a good measure.
“The growth of e-commerce in the country, from 0.3 per cent of retail volume five years ago to two per cent today, is also the ROI.”
Also present were DRB-HICOM group managing director Datuk Seri Syed Faisal Albar.
On postal tariff hikes, Shukrie said the company was waiting for the government’s decision.
Pos Malaysia group chief executive officer (CEO) Datuk Mohd Shukrie Mohd Salleh (left) and Lazada Malaysia CEO Hans-Peter Ressel at the signing of a memorandum of collaboration in Kuala Lumpur yesterday.