FAQ

  • The DFTZ is an initiative to capitalize on the confluence and exponential growth of the internet economy and cross-border eCommerce activities.
  • The DFTZ is setup to facilitate seamless cross-border trade and enable local businesses to export their goods with a priority for eCommerce.
  • DFTZ will have three components:
    • eFulfilment Hub: To help SMEs / businesses in exporting their goods easily, with the help of leading fulfilment service providers.
    • Satellite Services Hub: To connect SMEs / businesses with leading players who offer services like financing, last mile fulfilment, insurance and other services which are important in cross-border trade.
    • eServices Platform: To efficiently manage cargo clearance and other processes needed for cross-border trade.
  • The eServices platform is a unique element of the DFTZ. It will digitally connect users with government and business services to support cross-border trade.
  • In the future, this digital platform can be connected to similar platforms in other countries to make cross-border trade even easier.
  • Malaysia is among the first countries to embark on the digital eServices platform.
  • Help SMEs to export their products globally with ease
  • Enable global marketplaces to source from Malaysian manufacturers/ sellers
  • Make Malaysia the regional fulfilment hub for global brands to reach ASEAN buyers
  • Nurture an ecosystem to drive innovation in ecommerce and internet economy
  • Location/Facilities: Provide global best-in-class facilities and convenient location, leveraging latest technology and innovation for efficient cross border trade. Examples of facilities include modular warehouses with latest technology including sorting, shelving and pick-pack facilities.
  • Services: eServices platform including integrated services for DFTZ users. The eServices Platform will be an integrated system that connects online services by global eCommerce companies to the relevant Malaysian public sector systems to provide a seamless journey for exporters and importers to conduct their business online
  • Regulatory Processes: more efficient cargo clearance, primarily with regards to permit processing and cargo movement
  • E-Fulfilment Hub
    • Warehouses with latest technology including sorting, shelving and pick-pack facilities
    • LIU (Light Industrial Units) to allow for minor repair, assembly prior to shipping goods
    • Customs inspection & quarantine area
    • Category specific facilities like secure warehouse, temperature controlled storage and other facilities
  • Satellite Services Hub
    • Office space including co-working spaces
    • O2O (offline to online) showrooms
    • MICE facilities, training centres
    • Creative design elements, eco-friendly buildings
    • Large open spaces for community activities
  • Services
    • Government – Customs clearance, quarantine, permits, industry compliance, cross border trade advisory and others
    • Business services – Warehousing & fulfilment, freight forwarding, last mile delivery, return s handling, payment, insurance, web hosting, IT and others
  • Double the growth rate of SME’s goods exports to reach US$38 Billion by 2025
  • Create 60,000 jobs (direct+ indirect) by 2025
  • Facilitate US$ 65 Billion of goods movement via the DFTZ (exports, imports, transhipments) by 2025
  • The first eFulfilment hub of DFTZ will be located at KLIA Aeropolis
  • The first Satellite Services hub of DFTZ, Kuala Lumpur Internet City (“KLIC”), will be in Bandar Malaysia
  • SMEs and Malaysian manufacturers/ brands looking to export
    • Global brand owners looking to set-up a regional hub to reach ASEAN customers
    • Marketplaces looking to source from and use Malaysia as a hub
    • Local and global service providers (fulfilment, last-mile delivery, payments, insurance, and other service providers)
  • Provide market access to SMEs for them to reach global customers with the help of leading marketplaces
  • Simplify and accelerate cargo clearance process with the help of eServices platform
  • Provide end-to-end support to businesses for cross-border trade, networking and knowledge sharing to drive innovation within the internet ecosystem
    • Leading eFulfilment services (warehousing, pick, pack, labelling, and others)
    • Access to eCommerce ecosystem players (financing, last mile fulfilment, insurance, digital marketing, and others)
  • Provide the right ecosystem and facilities for brands to use Malaysia as a transhipment hub to reach ASEAN customers
  • The Government of Malaysia is the key stakeholder of DFTZ and is supported by other agencies and local key industry players as well as Alibaba Group.
  • DFTZ is operated through a public-private partnership
    • eFulfilment hub: first phase will be operated by a private free zone operator
    • Satellite services hub: first phase will be operated by a private player
    • eServices platform: developed and managed by the Government of Malaysia
  • The DFTZ will be operationalized in phases. The initial phase will be rolled out before the end of 2017 through a public-private partnership.
  • DFTZ does not alter the GST Act.
  • For exported goods, GST will not be applicable, as per the GST Act
  • For imported products, or any domestic sale of products from the DFTZ, applicable GST will be levied
  • The Satellite Services Hub of DFTZ will be Kuala Lumpur Internet City, the premier digital hub for global and local internet-related companies targeting Southeast Asia. KLIC will be home to key players within the internet ecosystem to facilitate end-to-end support, networking and knowledge-sharing to drive innovation in the internet economy and the eCommerce industry.