Local logistics players in good shape

PETALING JAYA: Kenanga Research says there is a bright side to the country’s third-party logistics sector, which is less vulnerable to external headwinds and is further supported by the boom in e-commerce.

Citing industry experts, the research house forecasts that the local gross merchandise value of e-commerce will grow at a compound annual growth rate of 7% from 2023 to 2027, reaching RM1.9 trillion by 2027 from RM1.4 trillion in 2023.

“The growing e-commerce sector will drive demand for distribution centers and warehouses that enable just-in-time delivery, re-shoring and near-shoring to bring manufacturers closer to end customers, efficient automation, including connectivity to customer systems, and decentralized warehouses to reduce transportation costs and reduce supply chain risk.

“There is also strong demand for cold storage amid the proliferation of online food startups. We maintain a ‘neutral’ call on the sector, with no top pick for the sector,” the research house added.