Malaysia jumps to fourth spot in emerging logistics industry ranking

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Kuala_Lumpur_skylineMalaysia’s drive to develop a world-class infrastructure and transport network propelled it to fourth spot in an annual ranking of the world’s 45 leading emerging markets.

Malaysia surged past Saudi Arabia (No. 5), Brazil (6), and Indonesia (7) in the 2016 Agility Emerging Markets Logistics Index. The study ranks emerging economies based on size, business conditions, infrastructure, and other factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers, and distributors.

China, the world’s second largest economy, remains the leading emerging market by a large margin. At No. 4, up four points from the 2015 index, Malaysia trails only China, United Arab Emirates (2), and India (3). Rounding out the top 10 are Mexico (8), Russia (9), and Turkey (10).

“Malaysia has shown a sustained commitment to economic diversification and to its drive to develop and upgrade its infrastructure,” said Chris Price, CEO of Asia-Pacific for Agility Global Integrated Logistics. “It has world-class ports, airports, road and rail networks, industrial parks and technology parks. It is going to lead the way as the ASEAN countries of Southeast Asia continue to work toward economic integration.”

Other emerging markets in the Association of Southeast Asian Nations (ASEAN) as ranked in the list include Thailand (13) and Philippines (15), both up one point from the previous index. Indonesia in seventh place actually tumbled three places, while Vietnam held steady at its No. 19 position, and Cambodia also stayed put in 44th place.

Only the United Arab Emirates ranks ahead of Malaysia in the area of the index that measures “connectivity”—infrastructure, transport links, and customs efficiency. Malaysia’s business climate ranked No. 10 in the index.

Supply chain industry executives surveyed put Malaysia at No. 10 among countries with the most potential to grow as logistics markets. Of the top 10, only Vietnam (No. 5) has a smaller economy.

“It was a volatile year for emerging markets, and you see that in the Index. Eight of the top 10 emerging markets shifted places,” said Essa Al-Saleh, president and CEO of Agility Global Integrated Logistics. “Despite the turbulence, the fundamentals driving growth remain consistent—a rising middle class with spending power, progress in poverty reduction, growing populations. That’s why we are still positive on the outlook for emerging markets and see them driving global growth.”

Transport Intelligence (Ti), a global analysis and research firm for the logistics industry, compiled the index.

Photo: Luke Ma