Cainiao: supporting the increase in trade flow from Malaysia to China

Cainiao: supporting the increase in trade flow from Malaysia to China

 Cainiao Network, the logistics arm of Alibaba Group, today announced its plans to launch chartered flights to connect Malaysia to the rest of Asia Pacific via the newly-launched Cainiao Aeropolis eWTP Hub situated at the Kuala Lumpur International Airport (KLIA).

The first chartered flight will run weekly from Kuala Lumpur, Malaysia to Shenzhen, China. In the near term, Cainiao will be launching more direct flights connecting major cities such as Hangzhou in China, Sydney in Australia, Singapore, and Jakarta in Indonesia, to enhance air freight connectivity and stability in the region.

The Kuala Lumpur-Shenzhen chartered flight will be operating thrice a week, with a 13-ton capacity to deliver Malaysian products such as local produce and electronic products, directly to Chinese consumers in four hours. The chartered flights will increase air freight stability amid cargo and commercial flight disruptions, and help businesses in Malaysia to tap on a wider Chinese market to facilitate economic recovery. Local businesses will also have the potential to export to the rest of Asia Pacific following the expansion of air freight routes in the near term.

The move was made in response to growing exports from Malaysia to China. According to a recent media statement from the Ministry of International trade and Industry of Malaysia[1], China remained as the country’s largest export destination, with exports expanding by 12.5 per cent to RM158.6 billion (US$24.6 billion) in 2020 or 16.2 per cent of total exports, the highest value thus far.

“The launch of direct chartered flights will support the increase in trade flow from Malaysia to China and the broader APAC region. Here, the enhanced air freight stability will play a key role in fostering economic development in Malaysia while also instilling greater resilience among SMEs,” said Shawn Louis, Executive General Manager for Cainiao and Chief LazGlobal Logistics Officer. “KLIA’s position as one of the leading distribution gateways in ASEAN, coupled with the smart logistics capabilities of the hub, will be instrumental in facilitating cross-border trade and serve as a regional center for SMEs to scale globally.”

The Cainiao Aeropolis eWTP Hub is a regional e-fulfillment hub located at the KLIA. It started operations in November 2020 to support Malaysia as a growing regional e-commerce logistics hub with 72-hour delivery globally. This November, the eHub was officially launched with a ceremony that was graced by the Ministry of Transport and the Malaysia Airports.   

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