Responses to CNBC queries
- DFTZ showcases Malaysia’s efforts in developing and driving an international eCommerce hub. It provides a holistic approach key to local SMEs growth by connecting them to eMarketplaces, government agencies, cross border logistic providers, cross border payment providers, etc.
- The DFTZ was conceptualised by the Malaysian Government with two key objectives in mind: drive Malaysian SME exports by leveraging on digital technology and position Malaysia as a regional transhipment hub.
- The DFTZ’s objective of driving exports of Malaysian SMEs is in line with Alibaba’s vision for the eWTP initiative of reducing barriers and making it easy for SMEs to go global. For this reason, Malaysia is in strategic collaboration with Alibaba to be a catalyst and kickstart the DFTZ.
- The DFTZ has commenced operations at the KLIA as the DFTZ pilot site in November of 2017 with Alibaba as a catalytic partner. Through this partnership, Alibaba will be setting up a eFulfilment Hub in Malaysia over two phases. The first phase will be at the KACT1, refurbished and operated by POS Malaysia to serve Lazada amongst other eCommerce players. The second phase will be a greenfield development over a 60-acre plot to be jointly developed by Malaysia Airports and CAINIAO Network, the logistics arm of Alibaba. This will be operational in 2020. This partnership will also lead to knowledge exchange.
- We are talking to several other marketplaces and our vision is to see many more eCommerce players coming on board as partners to make the most of the DFTZ.
- DFTZ presents the opportunity to link and enable local and global entities such as logistics, efulfillment, warehouse players as well as e-marketplaces and business service providers to enrich the DFTZ ecosystem and expand to other international airports and major seaports in Malaysia.
- The DFTZ eServices platform is developed by Malaysian companies and managed by an agency of the Malaysian Government. As processes are being digitized to achieve process improvement and simplification and to enhance cost competitiveness of our SMEs, all relevant laws and regulations in handling data are being adhered to including Malaysia’s personal data protection law.
- Additionally, with the digitization of processes and aggregation of data and services, DFTZ will create a seamless trade facilitation, bringing in time and cost efficiency. For instance, a local exporter of fruits and fruits-based products, DULAI FRUITS ENTERPRISE, saw greater efficiency in operations and distribution after doing trade through the DFTZ. DFTZ allowed Dulai Fruits Enterprises to ship smaller shipment via air, resulting in 30%- 50% reduction in air fares.
- As mentioned, a key objective of the DFTZ is to drive exports of Malaysian SMEs. On 3 November 2017, DFTZ went live about 2000 SMEs ready for export. This year, our aim is to have 10,000 SMEs onboard DFTZ. The SMEs onboard DFTZ have already started seeing benefits and have witnessed growth and market expansion. One of them is Afiq Trading Co. This local Malaysian company is in the business of trading agricultural products like coconuts, seaweed and fresh/ dried fruits. To date, Afiq Trading Co has successfully exported fresh coconuts to Poland and even secured orders from UAE, India, USA and China. Another example is Yanming Resources who through opportunities offered by the DFTZ, has increased its revenue from bird’s nest products fivefold.