UPS to expand operations in Malaysia as e-commerce booms

United Parcel Service UPS will expand its retail presence in Malaysia this year by partnering with ParcelHub amid the boom in e-commerce.

Matt Parkey, president of South Asia , said that e-commerce, parcel delivery and logistics management have boomed over the past 12 months, with demand at an all-time high, so the US company is ready to capitalise on these trends and ParcelHub's 200 stores to grow further.

Currently, UPS has a partnership with retail courier company Mail Boxes Etc, which has more than 90 outlets in Malaysia.

“Despite the short-term impact of the second wave of the pandemic, Malaysia has strong long-term growth fundamentals that bode well for many SMEs that support value chain industries. UPS is currently focusing on improving the resilience and access to global markets for SMEs, which were among the hardest hit during the pandemic. Over the past year, we have helped many traditional businesses shift online and attract more new users amid tightening domestic demand and the closure of physical stores. ”

Parkey said SMEs, which make up 98.5 per cent of businesses in Malaysia, are the bedrock of the country's economy and their prosperity is crucial to the broader recovery.

Bank Negara Malaysia governor Datuk Nor Shamsiah Mohd Yunus revealed last month that the online retail sales index averaged about 33% between March and December last year, compared with 22% in the early 2020s.

Another survey on the pandemic found that 57% of Malaysians shopped online more frequently than before the pandemic, leading to an unprecedented online shopping boom in the country.

In addition, UPS has invested in a freezer farm at its Singapore distribution center to increase its ultra-cold storage capabilities, supporting Singapore's goal of building a Southeast Asian COVID-19 vaccine distribution center.

“Singapore is UPS’s hub for Asia Pacific and key to our global smart network. China is also a medical distribution hub for global pharmaceutical companies. UPS supports critical medical technologies and pharmaceuticals that are vital to the entire global supply chain,” Parkey said.

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