Frequently Asked Questions
What will happen after the two-year freeze on issuing the courier service licence?
The two-year freeze on the issuance of courier service licenses ends on 15 September 2022. Applications for new licenses for courier services for all categories will be open on 16 September 2022, and courier companies can now apply for a new courier services licence for MCMC's consideration. More details can be found at the following website: https://www.mcmc.gov.my/en/sectors/postal-courier/licensing
MCMC will emphasise green technology such as using electric vehicles, improved last-mile delivery and e-consignment for new applicants. The need to provide environmentally friendly courier services will also be implemented to the existing courier players. It will be done in stages to ensure that the courier sector in Malaysia is on the right track with the green agenda and the Government's commitment to the environment.
Successful applicants will be issued courier services licence (A/B/C category) of the existing licensing framework, details as per below:
||International Inbound and Outbound & Domestic Courier Services
||International Inbound & Domestic Courier Services
||Intra-state Domestic Courier Services (limited to one state)
Following the lifting of the licensing freeze for new courier licenses. What is the new licence framework that can take place?
The rationale for reviewing the current licensing framework is the urgency for Malaysia to address the ‘new norm’ and to cater for future demand driven by situational changes, development, and evolution of the industry at the regional and global levels. The new licensing approach would necessitate some mindset shifts in regulating the courier service since it has emerged as an essential service for social and economic development. Such development has seen the emergence of new players to serve last-mile delivery, such as parcel lockers, pick-up and drop-off points under the Rangkaian PAKEJ. As such, MCMC needs to review the existing licensing framework to ensure these new entrants adhere to the industry's quality of service and coverage expectations.
The focus of the newly proposed courier licensing framework is to achieve world-class service through the 4R Strategy, namely Reachability (seamless coverage), Reliability (delivery times and customer service), Resiliency (sustainability) and Relevancy (growth in the digital economy).
What are the steps that the government is taking to address the concern of base rate for delivery of parcels and price dumping?
The main purpose of introducing a reference price within courier delivery services is to monitor any anti-competitive practices in protecting courier companies, especially local players from predatory pricing/price dumping activities. This is the long run to ensure continued protection to consumers and ensure business sustainability.
In April 2022, a new Courier Service Price Guideline came into effect. To inculcate a self-regulating industry, licensees are required to periodically declare their prices to the Commission to ensure predatory activities are curbed. Based on these data and analysis, will help the Commission to determine the appropriate policies with regards to pricing in the future.
How long will it take to implement PAKEJ?
Other than ensuring industry growth and sustainability, MCMC has also emphasised ensuring consumers' interests are always protected. MCMC has further strengthened consumer protection by promoting transparency via service performance disclosures, the mandate of Quality of Service Terms & Conditions, compensation/refund to consumers, and price declarations to ensure consumers' interests are well protected.
How were these interventions developed? Which of these interventions came from National Postal and Courier Industry Lab (NPCIL) involving the industry?
All interventions are strategically drafted to include input and multiple engagements with all stakeholders, not only licensees but also ministries, government agencies, industry and consumer forums.
During the two-year freeze on the issuance of courier service licence, the NPCIL was conducted, which aims to strengthen the postal and courier industry by providing wider coverage access and greater flexibility to users.
The eight-week lab was conducted to ensure the industry’s long-term viability to provide first class quality services to the Malaysian public through an action plan - formulated jointly with industry players and stakeholders -focusing on improving industry governance, regulatory approach, operational efficiency, service cooperation, and the overall customer experience.
The NPCIL outcomes are used for MCMC to craft the Pelan Accelerator Kurier Negara (PAKEJ), which will entail a 5-year strategic roadmap to strengthen the postal and courier industry to ensure its long-term. It aims to provide wider coverage, access, and greater flexibility to users, enhance the Quality of Service (QoS) to provide a seamless customer experience and support industry growth.
How will these interventions enable the industry to achieve the national aspirations i.e. to deliver quality of service (QoS) and seamless coverage to support the e-commerce industry’s growth to double the parcels per capita to 30 by 2025?
PAKEJ is to drive stakeholders’ collaboration to achieve its True North ‘Delivering Quality of Service and Seamless Coverage to all Malaysians sustainably to support the projected e-commerce Industry growth from 14 parcels per capita to 30 parcels per capita by 2025’.
In 2021, Malaysia’s parcel per capita reached 23.5, an increase from 14.1 parcels per capita recorded in 2020. This figure is in line with the objectives of the National Courier Accelerator Plan (PAKEJ) to support the projected e-commerce industry growth from 14 parcels to 30 parcels per capita by 2025.
The parcel volume and number of jobs in the postal and courier sector have grown exponentially in the last five years, driven mainly by e-commerce despite the challenging global economic development – Malaysia has recorded a parcel per capita of 24 at the end of 2021. Hence, through PAKEJ, the Commission will further enhance its growth sustainably by implementing comprehensive regulatory and development initiatives to further rejuvenate the sector with balanced development in urban and rural areas.