Mustapa wants SMEs to step into e-marketplace

SEPANG: The government is encouraging more SMEs to be involved in the Digital Free Trade Zone (DFTZ), not only through Alibaba.com but also other e-marketplaces such as Qoo10, Amazon, eBay, Trade India as well as their local counterparts such as Dagang Halal, Aladdin Street and BuyMalaysia.
Currently, the International Trade and Industry Ministry, Malaysia Digital Economy Corporation (MDEC), SME Corp and Malaysia External Trade Development Corp are focusing on the effort, which will provide more choices in terms of cost and market access for SMEs to fully enjoy the benefits of DFTZ.
The DFTZ pilot project was launched in March last year. It was set up to facilitate seamless cross-border trade and enable local businesses to export their goods with a priority for e-commerce. DFTZ will have three components: e-fulfilment hub, satellite services hub and e-services platform.
About 70 SME manufacturers participating in the DFTZ SME Onboarding Programme under eTrade have generated total sales of RM52.1 million with exports amounting to RM18.1 million since November 2017.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said to date, the number of SMEs participating in the programme has increased to 2,651, from 1,972 in November 2017. The government is aiming to attract 10,000 SMEs to participate in DFTZ by year-end.
Mustapa held a media conference today after a site visit to the KLIA Air-Cargo Terminal 1 (KACT1).
This year, the government plans to expand the DFTZ beyond KLIA to include all modes of connectivity, namely sea, land and rail, with Port Klang as well as Penang and Senai international airports identified as priority areas for expansion.
The DFTZ pilot project is located at KACT1, which currently houses the e-commerce regional distribution centre for Pos Malaysia and Lazada. KACT1 is located within the KLIA Aeropolis Air Cargo and Logistics development cluster, which is expected to generate RM1.6 billion in GDP and create 6,000 jobs within the next three to four years.
The KLIA Aeropolis DFTZ Park, the world’s first e-world trade platform outside of China, is expected to see RM800 million invested into its infrastructure, facilities, systems and equipment within the next three years.
Malaysia Airports Holdings Bhd is looking to develop another 1 million sq ft of gross floor area for cargo facilities within the next three years. It is looking to team up with potential strategic delivery partners to develop high-grade warehousing and distribution centres on a build and lease model that are able to cater to specialised needs such as halal logistics, high-value goods and pharmaceuticals.
Other infrastructure developments will also include a free commercial zone corridor to cater to business expansion growth, an airport cargo freight station to support intermodal connectivity to seaports and the utilisation of big data analytics to improve operational efficiency.
Meanwhile, with the heightened focus on B2C and B2B activities, MDEC is expanding the scope of engagements to include government agencies Teraju and Mara, as well as other associations such as the National ICT Association of Malaysia. Other organisations include e-commerce platform providers such as EasyStore, SiteGiant, payment gateway and logistics players such as Aramex, Pos Malaysia and Transcargo.
Pos Malaysia is currently engaged in securing other key e-marketplaces to utilise DFTZ as their regional e-fulfillment hub. To date, China-based fulfillment and logistics provider AllSome and e-commerce solution provider Mister eCommerce have been identified as the next group of users in the DFTZ ecosystem.
Since 2016, five regional e-fulfillment hubs have been established in Malaysia namely by Pos Malaysia, SnT Global Logistics Sdn Bhd, YCH Logistics Sdn Bhd collaborating with Zalora to set up Zalora’s regional distribution hub in Shah Alam, FM Global Logistics Sdn Bhd and Xin Hwa Trading & Transport Sdn Bhd.
MIDA is also currently working towards attracting other players to set up their e-fulfillment facilitiles in Malaysia.