International Trade and Industry second minister Datuk Seri Ong Ka Chuan says it is high time for Pos Malaysia to transform its operation into an e-commerce logistics, which is similar to China Post. (NST file pic)

NANNING: The International Trade and Industry Ministry (MITI) will meet with Pos Malaysia Bhd soon to discuss on the setting up of an e-commerce logistics hub in the country with the collaboration of China Post.

MITI's second minister Datuk Seri Ong Ka Chuan said, it is high time for Pos Malaysia to transform its operation into an e-commerce logistics, which is similar to China Post.

"When I return to Malaysia, I want to talk to Pos Malaysia immediately to convert Malaysia into an e-commerce logistics hub. I got this inspiration from the China Post," he told reporters after witnessing the signing of two memorandum of understanding (MoU) here today.

"Normally, logistic companies will go to places that they know they can make money from, but China Post goes to both the urban and rural areas to serve the poor. They have social responsibility," he said.

Earlier today, the Malaysia External Trade Development Corporation (Matrade) signed a MoU in an effort to pave way for Malaysian enterprises to enter the China market.

The MoU which was signed between Matrade, China Post Guangxi Zhuang Autonomous Region Branch and KCO Logistics and Distribution Services Sdn Bhd is expected to further enhance market access of Malaysian companies, especially into the huge China's rural untapped market.

"The cooperative relationship between the mentioned parties are aimed to improve the business environment and promote more effective market access by Malaysian companies.

"This can be done through the establishment of Malaysia Pavilion in China Post e-commerce portal ule.com and marketed through China Post's offline stores by leveraging on China Post's platform and networks in China

"The area of cooperation includes the establishment and operation of Malaysia Pavilion in China Post's online and offline platforms," Ong added.

He explained that ule.com is a rural e-commerce platform connecting the offline outlets with online or mobile services and supported with the extensive logistics network of China Post.

He added, such effort will help boost the presence of Malaysian products and brands to tap into the China's market nationwide.

"As the second largest global economy with a total population of 1.37 billion people, China remained as our focus export major target due to its larger demand and offers vast business opportunities for Malaysian companies," Ong said.

Later in the afternoon, another MoU was signed between Hernan Corporation Sdn Bhd, a company that exports durian-based products, and Shanghai Miss Durian Food Co Ltd, a company that engages in import and export business.

The purpose for this MoU was to enable the supply of durian paste and durian-based products from Malaysia to China.

The MoUs were signed in conjunction with the 14th China-Asean Expo (CAEXPO) here.

The four-day expo, which is organised annually in Nanning since 2004, is a platform to promote cooperation between China and Asean in the fields of trade, investment and tourism.

The theme for this year’s CAEXPO is “Jointly Build the 21st Century Maritime Silk Road, Promote Regional Economic Integration through tourism”.

Trade between Malaysia and China expanded by 27.7 per cent to RM163.02 billion for the first half of 2017, with higher imports from China such as petroleum products, electrical and electronic products as well as machinery, equipment and parts.

On Monday, Ong said bilateral trade between Malaysia and China is expected to increase to US$160 billion (RM671.7 billion) by 2020.

For last year, Ong said bilateral trade between the two countries was US$87 billion (RM365 billion), and expressed confident it would increase up to US$100 billion (RM420 billion) this year on improved global economy.

Thus, Malaysian companies should venture and utilise the automotive sector in China as the sector is huge and demanding. He said the Malaysian automotive market is smaller compared to China and had only recorded a sale of 580,000 units compared to China, which was 28 million units.

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