Alibaba-Backed Cainiao, BEST Team Up on E-Commerce Deliveries to Malaysia
Zhang Yushuo
DATE:  Sep 24 2020
/ SOURCE:  Yicai
Alibaba-Backed Cainiao, BEST Team Up on E-Commerce Deliveries to Malaysia Alibaba-Backed Cainiao, BEST Team Up on E-Commerce Deliveries to Malaysia

(Yicai Global) Sept. 24 -- Cainiao Network, the logistics arm of Chinese e-commerce giant Alibaba Group Holding, and leading smart supply chain solutions provider BEST are linking up to provide a door-to-door delivery service between China and Malaysia that will help promote cross-border e-commerce, the two Hangzhou-based firms said on Sept. 22.

The new service leverages BEST's logistics network in Malaysia, which comprises over 100 last-mile service stations, ensuring that customers receive their parcels within one day of clearing customs. Sea transit journeys have also been reduced to six days, chopping delivery times between the two countries to as little as 15 days from the previous average of 20 days.

It also comes just in time to take advantage of China's highly popular Double Eleven online shopping bonanza in November.

"The establishment of a direct Malaysia-China e-commerce logistics service is a continued affirmation of our investment into the region," said James Zhao, general manager at Cainiao Network.

"With a direct logistics service, Malaysian small and medium enterprises can look forward to selling goods to China via the Malaysian Pavilion on, while consumers in Malaysia will benefit from better customer experience when buying from Chinese merchants," Zhao added.

Since 2019, BEST has built express courier networks in five Southeast Asian countries, namely Thailand, Vietnam, Malaysia, Cambodia and Singapore, to take advantage of the huge surge in online shopping habits and to further open up cross-border services with China.

E-commerce in Malaysia is expected to increase by 30 percent this year with increased internet penetration, higher levels of technology use and the lingering stay-at-home effect of the Covid-19 pandemic. BEST plans to have 270 last-mile service stations and sorting centers in the country within three years.

"Southeast Asia has been a key focus area of BEST's global strategy," said Chairman and Chief Executive Officer Johnny Chou. "Through investment in automation, information technology and logistics networks, we have developed express delivery networks in five markets in the region, providing customers with speedy, reliable, and cost-efficient services, while facilitating the growth of local SMEs and cross-border e-commerce," he added.

Cainiao already has a Malaysian logistics partner for its air and sea freight services. The co-operation with BEST is part of the Alibaba affiliate's strategy to work with more local logistics providers to better its Malaysia-China service.

BEST delivered 25 million parcels in Southeast Asia in the first six months of the year.

Editor: Kim Taylor

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Keywords:   cross-border logistics,Cainiao,Malaysia