Malaysian International Integrated Logistic Services
- Roger Pay
- May 16
- 9 min read
Malaysian Logistics Sector Overview
Malaysian International Integrated Logistic Services
Malaysia's logistics sector is experiencing significant growth and transformation, driven by its strategic location, robust infrastructure, and government initiatives. The Malaysian Investment Development Authority (MIDA) plays a crucial role in promoting the industry through various incentives and the International Integrated Logistics Services (IILS) status.
International Integrated Logistics Services (IILS)
The IILS status is granted to logistics companies that can provide comprehensive, end-to-end logistics solutions across the supply chain, both regionally and globally. These services include:
Multimodal Transportation: Covering air, ocean, road, and rail freight.
Warehousing: Providing storage and management of goods.
Freight Forwarding: Arranging the movement of goods on behalf of shippers.
Distribution: Managing the delivery of goods to the final destination.
Value-Added Services: Such as product assembly, installation, consolidation, procurement, quality control, and supply chain management.
Eligibility Criteria for IILS Status:
To obtain IILS status, companies typically need to meet certain criteria, including:
Majority Malaysian employees.
Using Malaysia as a logistics hub.
Significant use of ICT infrastructure.
Managing a minimum of 20 commercial vehicles and 5,000 square meters of warehouse space.
Undertaking warehousing, transportation, and freight forwarding as principal activities, along with at least distribution/supply chain management or other related value-added services.
Companies with IILS status may also be eligible to apply for a Freight Forwarding Agent/Customs Agent license from the Royal Malaysian Customs Department.
Trends and Developments in Malaysian Logistics
Several key trends are shaping the logistics landscape in Malaysia:
Digital Transformation and Automation: The adoption of Industry 4.0 technologies, such as AI, IoT, and robotics, is increasing efficiency, reducing costs, and improving supply chain resilience. The government provides incentives to encourage the establishment of smart logistics complexes and the integration of advanced systems.
E-commerce Growth: The rapid expansion of e-commerce is driving the need for seamless e-fulfillment centers and efficient last-mile delivery services.
Sustainability: There is a growing emphasis on green logistics practices, including energy-efficient systems, renewable energy, and electric vehicles, to reduce the carbon footprint of supply chain operations.
Cold Chain Logistics: This sector is expanding due to increased freight volumes, improved infrastructure, and e-commerce growth, with investments in smart facilities and refrigeration systems.
Major Logistics Companies in Malaysia
Malaysia has a mix of local and international logistics service providers. These companies, along with many others, contribute to Malaysia's position as a significant logistics hub in Southeast Asia. The government continues to support the sector's development through strategic policies and investments in infrastructure and technology.
Guidelines for Application for International Integrated Logistics Services (IILS) Status
The Malaysian Investment Development Authority (MIDA) provides guidelines for companies wishing to apply for the International Integrated Logistics Services (IILS) status. Here's a breakdown of the key aspects:
Definition of IILS
An IILS provider is a company that offers integrated and seamless logistics services encompassing the entire supply chain (door-to-door) as a single entity on a regional or global scale. Obtaining IILS status is a prerequisite for applying for a Freight Forwarding Agent/Customs Agent license from the Royal Malaysian Customs Department (RMCD). However, IILS status does not automatically guarantee tax incentives.
Eligible Applicants
Both new entrants and existing logistics service providers incorporated under the Companies Act 2016 are eligible to apply.
Qualifying Criteria
To qualify for IILS status, applicants must meet the following criteria:
Principal Activities: Undertake the following three principal activities:
Warehousing
Transportation
Freight forwarding (including customs clearance) and at least one of the following activities:
Distribution
Other related and value-added logistics services/activities (e.g., break bulking, palletizing, labeling, product assembly/installation, consolidation, procurement, quality control, supply chain management)
Infrastructure: Manage a minimum of:
20 units of commercial vehicles (goods vehicles).
5,000 square meters of warehouse space.
Regional Hub: Use Malaysia as a hub for logistics supply chain services in the region.
International Network: Possess good networks with logistics service providers abroad to provide seamless integrated logistics services for the regional market.
ICT Usage: Demonstrate substantial usage of ICT infrastructure throughout the logistics chain and value-added activities.
Malaysian Workforce: Employ a majority of Malaysians, with preference given to local professionals.
Customs Agent Course: Compulsory attendance of the Customs Agent course conducted by the Royal Malaysian Customs Department.
Equity Policy
Up to 100% foreign equity ownership is allowed for companies applying for IILS status.
Procedure for Application
Applications should be submitted online through the MIDA e-TRANS portal.
The following documents (where applicable) must be submitted with the application:
Certificate of Incorporation
Form 24 (Return of Allotment of Shares)
Form 49 (Particulars of Directors)
Latest Annual Report of the company
Other relevant supporting documents, such as the company profile.
A checklist for the required supporting documents is usually available with the application form.
Details of any expatriate posts applied for should be submitted in the format provided in the application form.
Incomplete applications will not be accepted and will be returned.
By obtaining IILS status, logistics companies can enhance their service offerings, streamline operations, and potentially benefit from government support in Malaysia's growing logistics sector. This status also enables them to apply for the crucial Freight Forwarding Agent/Customs Agent license, facilitating international trade activities.
Applying for a Freight Forwarding Agent/Customs Agent License
Applying for a Freight Forwarding Agent/Customs Agent license from the Royal Malaysian Customs Department (RMCD) typically requires obtaining the International Integrated Logistics Services (IILS) status from the Malaysian Investment Development Authority (MIDA) first. Here's a breakdown of the process:
Prerequisite: Obtain IILS Status from MIDA
As highlighted in the guidelines for IILS status, having this status is a prerequisite for applying for the Freight Forwarding Agent/Customs Agent license from RMCD. Ensure your company meets all the requirements and has been granted IILS status before proceeding.
Application to the Royal Malaysian Customs Department (RMCD)
Once you have obtained the IILS status, you can apply for the Freight Forwarding Agent/Customs Agent license from the RMCD. Here's a general overview of the specific forms and detailed procedures:
Online Application: License applications are submitted online through the RMCD portal. You may need to register for an account on their website (https://www.customs.gov.my/).
Navigate to Licensing Section: Look for a "LICENSE RMCD" menu or a similar section on the portal. Under this, you should find options related to "Customs Agent" and "Agent License Application."
New Application: Click on the "New" button or a similar option to start a new license application.
License Information Form: You will need to fill out an online form with details about your company and the type of agent license you are applying for (freight forwarder, customs agent, or both). You need to specify an "Agent Code" in the format XX9999, where XX represents the Malaysia state code, and the following character represents the type of agent (F for forwarder/broker, R for freight forwarding agent).
Qualified Person Details: The application requires details of qualified personnel within your company who have attended and passed the Customs Agent course conducted by the RMCD or Akademi Kastam Diraja Malaysia (AKMAL). You will need to provide their registration details with AKMAL. At least one person with a "Senior Executive" position needs to be included.
Supporting Documents: You will need to upload various supporting documents. The exact list generally includes:
A copy of your company's Certificate of Incorporation.
Your MIDA approval letter for IILS status.
Details and certificates of the qualified personnel who have completed the Customs Agent course.
Possibly a surety document (this might be mandatory).
Other documents as required by RMCD.
Associate Customs Station: You might need to associate your license with specific customs stations where you will be operating.
Submission: Once all the required information is filled and documents are uploaded, you will need to submit the application through the online portal.
Processing and Approval: The submitted application will be reviewed by the RMCD. This process may take some time.
License Issuance: If your application is approved, the Freight Forwarding Agent/Customs Agent license will be issued. Licenses are typically valid for one year and are renewable.
Customs Agent Course
A crucial requirement for the Freight Forwarding Agent/Customs Agent license is the compulsory attendance and completion of the Customs Agent course conducted by the Royal Malaysian Customs Department through its academy, Akademi Kastam Diraja Malaysia (AKMAL).
Conducted by AKMAL: This academy is the training arm of the RMCD, and the Customs Agent course is specifically designed to equip individuals with the necessary knowledge of customs procedures, regulations, and documentation. AKMAL has its main campus in Melaka and branches in Sabah, Sarawak, Langkawi, and Rantau Panjang.
Third-Party Providers: Universiti Teknikal Malaysia Melaka Holdings (UTEKMAL) also collaborates with AKMAL to deliver the Customs Agent Course (known as KEK - Kursus Ejen Kastam). Other private training providers might also offer courses that prepare individuals for the RMCD's requirements, but the official certification often comes from AKMAL or through programs accredited by them.
Course Content: The course typically covers topics such as customs legislation, import and export procedures, customs declaration forms, classification and valuation of goods, free zone procedures, sales tax related to customs, offenses and penalties, and appeal/review procedures.
Compulsory Attendance: Compulsory attendance at this course is a prerequisite.
Registration and Schedules: Information on course schedules, registration procedures, and fees can usually be found on the AKMAL or collaborating institutions' websites (e.g., UTEKMAL). You need to look for the "Kursus Ejen Kastam (KEK)" or "Customs Agent Course." Schedules vary, with both face-to-face and potentially online options available at different times.
Examination: Upon completion of the course, participants will likely need to sit for an examination conducted by RMCD/AKMAL. Passing this exam is essential for being recognized as a qualified customs agent for licensing purposes.
The process involves first meeting MIDA's requirements for IILS status and then applying to the RMCD for the agent license, ensuring that your company has personnel who have successfully completed the mandatory Customs Agent course conducted or recognized by the RMCD. Always refer to the official websites of MIDA and RMCD for the most up-to-date information and specific application procedures.
Enquiries and Clarification
For further enquiries and clarification, applicants can refer to the MIDA website or contact MIDA directly:
Website: www.mida.gov.my
Tel: (603) 2267 3633
Fax: (603) 2274 7970
E-mail: investmalaysia@mida.gov.my
How Bestar can Help
As a professional, we can significantly assist companies in navigating the application processes for both the International Integrated Logistics Services (IILS) status and the subsequent Freight Forwarding Agent/Customs Agent license. Here's how we can help at each stage:
For the Application for International Integrated Logistics Services (IILS) Status:
Information Gathering and Understanding:
We can provide you with the most up-to-date guidelines, eligibility criteria, and required documentation from the Malaysian Investment Development Authority (MIDA).
We can clarify any ambiguities or complex requirements outlined in the official guidelines, ensuring you have a clear understanding of what is needed.
We can help you understand the strategic benefits of obtaining IILS status and how it aligns with your business goals.
Document Preparation and Review:
We can help you identify all the necessary documents, such as the Certificate of Incorporation, financial statements, details of vehicles and warehouse space, and ICT infrastructure information.
We can assist in structuring and formatting your application documents to meet MIDA's requirements, ensuring clarity and professionalism.
We can review draft documents for completeness, consistency, and adherence to the guidelines, helping you avoid common errors that could lead to delays.
We can help you articulate your company's regional hub strategy and international network capabilities in a compelling and professional manner.
We can assist in preparing a well-structured business plan that highlights your integrated logistics services and value proposition.
Ensuring Compliance with Criteria:
We can help you assess whether your company currently meets all the eligibility criteria, such as the number of commercial vehicles, warehouse space, and the range of logistics services offered.
If there are any gaps, we can help you identify potential solutions or strategies to meet the requirements before submitting your application.
We can help you articulate how your company utilizes ICT infrastructure to enhance its logistics operations, a key criterion for IILS status.
Preparing for Potential Inquiries:
Based on common queries and potential areas of scrutiny, we can help you anticipate questions MIDA might have during the evaluation process and prepare professional and comprehensive responses.
For Applying for a Freight Forwarding Agent/Customs Agent License (Post-IILS Approval):
Understanding RMCD Requirements:
Once you have obtained IILS status, we can provide you with the specific guidelines, application forms, and required documentation from the Royal Malaysian Customs Department (RMCD).
We can help you navigate the RMCD portal and understand the online application process.
We can clarify the prerequisites, such as having personnel who have successfully completed the Customs Agent course conducted or recognized by AKMAL.
Qualified Personnel Documentation:
We can help you organize and present the details and certifications of your qualified personnel who have completed the mandatory Customs Agent course.
We can ensure that the information provided aligns with RMCD's requirements for qualified individuals.
Preparing Supporting Documents:
We can help you compile the necessary supporting documents, including your MIDA approval letter for IILS status, company registration details, and potentially surety documents.
We can assist in ensuring that all documents are accurate, up-to-date, and presented professionally.
License Application Form Assistance:
We can help you understand each section of the RMCD application form and ensure that all fields are completed accurately and professionally.
We can assist in providing the correct "Agent Code" format and other specific details required by RMCD.
Compliance and Regulations:
We can provide information on the customs regulations and procedures that freight forwarding and customs agents need to adhere to in Malaysia, ensuring your application reflects an understanding of these obligations.
Review and Submission Guidance:
Before submission, we can review all your application documents to ensure they are complete, consistent, and professionally presented, minimizing the risk of rejection due to administrative errors.
We can guide you through the online submission process on the RMCD portal.
In summary, we can act as a professional to streamline and enhance your application processes for both IILS status and the Freight Forwarding Agent/Customs Agent license by:
Providing accurate and up-to-date information.
Assisting in the preparation and review of all necessary documentation.
Ensuring compliance with the specific requirements of MIDA and RMCD.
Helping you present your company in a professional and compelling manner.
Guiding you through the application procedures.
By leveraging our capabilities, you can increase the efficiency and accuracy of your applications, potentially leading to a smoother and more successful outcome.
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