Cainiao announces direct air freight to East Malaysia

Cainiao Network, the logistics arm of Alibaba Group, announced on Thursday the launch of direct air freight from China to East Malaysia to enhance cross-border logistics for Lazada, the popular e-commerce site in Southeast Asia acquired by Alibaba.

Operating three times weekly, the direct flights to Kota Kinabalu in Sabah and Kuching in Sarawak will reduce logistics costs by over 50 percent for Sabah and Sarawak customers and shorten average delivery time by two days, from 14 to 12 days or as fast as seven days, the company said in a press release.

The move aims to enhance delivery efficiency and stability amid growing consumer demand, according to Shawn Louis, executive general manager for Cainiao and chief LazGlobal logistics officer.

Data from Statista showed Malaysia's e-commerce is set to more than double from $6 billion to $13 billion from 2020 to 2025, with 61 percent of cross-border e-commerce purchases from China.

"Against the backdrop of growing consumer demand and increased e-tailored competition, superior logistics services will continue to be the key differentiator for merchants to improve customer experience and establish their competitive edge," Louis said.

This announcement comes after the commencement of operation of the Cainiao Aeropolis eWTP Hub, an e-fulfillment hub located at Kuala Lumpur International Airport, in November 2020.