The logistics industry faced with the traffic bottlenecks and inefficiencies that caused the loss in productivity hours. Driver shortage, excessive use of illegal trucks and the absence of a common CIQ transit centre are the biggest challenges for logistic industry in Malaysia. Due to the advancement of e-commerce sector, it caused many logistics companies unable to meet the market demands due to their lack of resources.
Furthermore, there is another challenge for last-mile delivery is without the new technology and automation in the operations. It caused the loss of data collection and information. At the end, they are unable to fully satisfy the market demands.
However, the growth of e-commerce would like to attract new player which may cause the logistics industry to be more intense. The business margin will be affected also. Last but not least, the operating costs are higher for logistic industry in the cost of manpower, fuel and warehouse rental.
On the other hand, the government are recognized that logistics industry is a vital component in the economic performance. The government has promised to find out the solution in order to solve the bottlenecks and increase efficiency.