- Pos Malaysia plans to take on a more direct role in providing logistics services to Chinese e-commerce giant Alibaba Group (Alibaba), tapping a boom in online retailing.
- The group currently handles parcel deliveries for Alibaba through freight forwarders or consolidators such as Japan’s Sankyu.
- Pos Malaysia has planned talks with Alibaba this month on bypassing the middlemen when shipping goods sold on its platforms.
Significance: Surging parcel deliveries for online shopping drove a 40 percent jump in Pos Malaysia’s profit in the first quarter, lifting expectations of higher full-year earnings. Pos Malaysia keeps a strong focus on e-commerce, which is driving the group’s logistics business. The Malaysian government is also in the process of examining its proposal for higher postal rates.