___________________________________________________________________________ 2017/SOM2/CTI/DIA/007 The Malaysian Experience in Facilitating Trade Submitted by: Malaysia Digital Economy Corporation 3 rd Public-Private Dialogue on Advancing Trade Facilitation and Supply Chain Connectivity Through Asia-Pacific Model E-port Network Ha Noi, Viet Nam 19 May 2017
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2017/SOM2/CTI/DIA/007
The Malaysian Experience in Facilitating Trade
Submitted by: Malaysia Digital Economy Corporation
3rd Public-Private Dialogue on Advancing Trade Facilitation and Supply Chain Connectivity Through
Asia-Pacific Model E-port NetworkHa Noi, Viet Nam
19 May 2017
1
APMEN PUBLIC-PRIVATE DIALOGUE (PPD) THE MALAYSIAN EXPERIENCE IN FACILITATING TRADE
DATO’ NG WAN PENG CHIEF OPERATING OFFICER
FRIDAY, 19 MAY 2017
2
Connecting businesses and people to their digital future.
We help to build a vibrant digital economy in Malaysia that attracts companies, talent and investment while enabling Malaysian businesses to play a leading part in the global digital revolution.
We are driven by the promise that technology and innovation have to transform the future of our people and the world.
3
ECOMMERCE IS GROWING GLOBALLY, MALAYSIA B2C ECOMMERCE MARKET IS EXPECTED TO GROW TO US$ 3.4 BILLION BY 2020
$ eCommerce Sales Sales Growth Online Buyer Penetration
1. Retail value RSP excluding sales tax 2. Includes Germany, France, U.K., Italy and Spain 3. Includes Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam Source: Euromonitor, Statistica, A.T. Kearney estimates, e-conomy SEA Google TEMASEK
United States: $ 271 Bn.
15% 79%
EU 52: $ 158 Bn.
15% 75%
China: $ 293 Bn.
86% 52%
Japan: $ 69 Bn.
14% 81%
World: $ 1 Tn. 24% 45%
ASEAN 63: $ 9 Bn.
29% 60%
1.5 3.4 8.5
2014 2020
(USD B) Retail eCommerce market size
2025
Malaysia is the 3rd largest
eCommerce market in
ASEAN, others are fast
catching up
B2C eCommerce Sales Growth (2015, USD, % sales growth compared to 2010)
Malaysia
4
PRIVATE SECTORS EXPERIENCE 4 KEY CHALLENGES WHEN ENGAGING IN CROSS-BORDER ECOMMERCE
• No information on differences in services and standards across economies
• Lack of transparency in pricing – particularly for total landing costs
• Variation in custom requirements
• Lack of clear KPI in clearance time, resulting in buffers inefficiencies
Lack of info. transparency &
choice
Differing border clearance admin.
Long lead time and poor last-mile service
quality
Difficulties with returns
• Long delivery lead time for non-express services
• Gaps in track and trace capability across providers
• Reverse logistics is particularly problematic for large volumes and with postal services
5
MALAYSIA IS EMBARKING ON A MISSION TO DEVELOP DIGITAL FREE TRADE ZONE (DFTZ) TO STRENGTHEN OUR ECONOMY
SMEsfacechallengessuchaspooraccesstoglobalmarkets,complex
regula2onsandcer2fica2onsdesignedforbigcompanies,andalackofaccesstofinancing.
Jack Ma StPetersburgInterna/onal
EconomicForum,16June2016
Prime Minister’s vision has been complemented by
Jack Ma’s ambition of creating multiple DFTZs
around the world
WewanttohelpSMEsovercomethecomplexregula9ons,processesandbarriers,andeventually
furtherencouragebusinessesandtraderstoconnectandcollaborateincross-bordertrading.
YAB PM Najib Razak DFTZLaunch,22March2017
6
Enable SMEs to go global
Make Malaysia a key sourcing hub for global marketplaces
Serve as ASEAN’s regional fulfillment hub for monobrands
Nurture an ecosystem to drive innovation in eCommerce
DFTZ VISION
DFTZ OBJECTIVES
7
DFTZ HAS 3 MAIN COMPONENTS PROVIDING A COMPLETE SUITE OF SERVICES TO ENABLE CROSS-BORDER TRADE FOR USERS
EFULLFILLMENT HUB (Physical)
Warehouse
Customs
Pick, pack, label
Sorting, dispatch
Light Industrial Unit
SATELLITE SERVICES (Physical)
Corporate Offices
IT Services
Businesses Services
Financial Services
Others
E-SERVICES PLATFORM (Virtual)
Unified platform for government services (customs, permit etc.)
Connect businesses with service providers
8
IMPORT-EXPORT PROCESS IMPROVEMENT
Source: ATK, DFTZ Value Proposition , Operating Model and Implementation Roadmap
Landed at KLIA Cargo Terminal
Customs Clearance
Cargo Terminal Operators’ warehouse
Customs Exit Point
8
To reduce Cargo Clearance time:
9
Customs Permit Issuing Agencies
Global linkages
DFTZ E-SERVICES PLATFORM
SMEs
Service Provider A Service Provider B Service Provider C
DFTZ e-Services Platform
economies
around the globe
10
THANK YOU
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