Kenanga Research projects the local gross merchandise volume for eCommerce would grow at a compounded annual growth rate of 7% from 2023 to 2027. — Bloomberg
PETALING JAYA: There is a bright spot in the domestic focused third-party logistics sector which is less vulnerable to external headwinds, buoyed by the boom in eCommerce, says Kenanga Research.
Citing industry experts, the research house projects the local gross merchandise volume for eCommerce would grow at a compounded annual growth rate of 7% from 2023 to 2027, reaching RM1.9 trillion by 2027 from RM1.4 trillion in 2023.
“The booming eCommerce sector will spur demand for distribution hubs and warehouses to enable just-in-time delivery, re-shoring and near-shoring to bring manufacturers closer to end-customers, efficient automation including connectivity with customer systems and warehouse decentralisation to reduce transportation costs and de-risk the supply chain.
“There is also strong demand for cold-storage warehouses on the back of the proliferation of online grocery start-ups. We maintain a ‘neutral’ call on the sector while not having any top pick for the sector,” the research house added.
