CONVERGENCE MAY-JUNE 2017

What's
C onverging
Driving Innovation
In E-commerce
MoU signed to make KLIA Aeropolis
a regional e-commerce and logistics hub
Malaysia Airports Managing Director, Datuk Badlisham Ghazali (from left to
right) with Prime Minister, Dato' Sri Mohd Najib Razak and Cainiao Network
President, Wan Lin
An electronic world trade platform (eWTP) to enable SMEs
and young entrepreneurs to participate in the global trade
easily and in equal terms will fast become a reality.
This is largely due to the first steps taken by Malaysia Airports
and Cainiao Network by signing a Memorandum of
Understanding (MoU) to explore the potential for developing
a regional e-commerce and logistics hub in KLIA Aeropolis.
The MoU, signed on March 23, allows both establishments to
explore the possibilities of a hub that caters to the businessto-consumer
(B2C) and business-to-business (B2B) segments.
This signing was conducted in conjunction with the launch of
the world’s first digital free trade zone (DFTZ) outside of China
by Prime Minister, Dato’ Sri Mohd Najib Razak.
The initial phase of this hub is currently expected to roll out
before the end of 2017, leading to the planned formal launch
by the end of 2019.
Malaysia Airports Managing Director, Datuk Badlisham Ghazali
said, "Apart from realising our vision to become the global
leader in creating airports cities, this collaboration will further
support the government's aim to transform Malaysia into a
key sourcing and fulfillment hub for global marketplaces and
nurture an ecosystem to drive innovation in e-commerce by
tapping on available resources under KLIA Aeropolis."
Cainiao Network President, Wan Lin said, "The key purpose
for establishing this e-fulfillment hub is to help connect SMEs
to world markets via an efficient and cost effective platform
so they can benefit from a network effect as more and more
e-hubs join the platform. It will help overcome the limitation
of the more traditional single linear model in the past that
tends to connect just one market to the world. Underpinning
the hub is a data platform that will enable both B2C and B2B
enterprises to overcome hurdles such as customs clearance.
That will in turn help lay the foundation for achieving our goal
of 72-hour delivery for anywhere in the world."
KLIA Aeropolis has been selected to be the site of the initial
phase for the DFTZ. Launched in mid-2016, its comprehensive
master plan is closely aligned to national development agenda
and focuses on three key clusters – Aerospace & Aviation; Air
Cargo & Logistics; and MICE & Leisure. The Air Cargo &
Logistics cluster vision seeks to leverage on the strategic
location of KL International Airport (KLIA) within South East
Asia. Further, KLIA’s extensive network connectivity; progressive
infrastructure with its three independent runway system and
capacity for a future fourth runway; its existing Free Commercial
Zone (FCZ); and a ready logistics ecosystem populated with
four top worldwide integrators and 20 global freight forwarders
also proved to be key factors in the DFTZ site selection.
"Our aspiration for the Air Cargo & Logistics cluster is to
position KLIA Aeropolis as the regional e-commerce Hub
anchored by global e-commerce leader such as Alibaba. We
hope this will unlock the value of the South East Asia's
e-commerce market which is expected to reach USD88 billion
by 2025," Badlisham added.
The development of KLIA Aeropolis is one of four strategic
priorities identified in the Malaysia Airports' five-year business
plan, Runway to Success 2020 (RtS 2020).
109