since 1976
since 1976
According to Mordor Intelligence, the freight and logistics industry is vital to the country’s economic growth, with Malaysia’s market projected to grow from RM 131.96 billion (USD 29.70 billion) in 2025 at a compound annual growth rate (CAGR) of 5.20%, reaching RM 170.10 billion (USD 38.28 billion¹ by 2030.
What has driven this growth is the rise of e-commerce and the expansion of international trade². As online shopping continues to flourish, the freight and logistics sector is adapting to meet the increasing demand for fast, reliable delivery services.
Similarly, Malaysia’s robust manufacturing sector, particularly in electronics and automotive industries, has created substantial demand for logistics services. The manufacturing sector’s reliance on efficient supply chain management and just-in-time deliveries highlights another key driver of growth in the freight and logistics market.
The rapid expansion of the sector brings operational efficiency into sharp focus as businesses strive to meet growing demands while maintaining operational excellence. The challenge is further compounded by the rising costs of raw materials, energy, utilities and labour, alongside new sustainability mandates such as the carbon tax outlined in Budget 2025, which have intensified operational pressures.
Shairan Huzani Husain, Managing Director, Shell Malaysia Trading Sdn Bhd and Shell Timur Sdn Bhd expressed that competition and market pressures are at an all-time high, “In order to stay competitive, companies must identify innovative strategies to manage their operational costs without compromising efficiency.”
The Case for Fuel Efficiency
Fuel expenses, in particular, account for a significant portion of logistics companies’ budgets, further highlighting the need for innovative cost-management strategies. In fact, 32% of fleet managers³ mention fuel as their single largest cost.
“Optimising fuel efficiency offers businesses a critical lever to manage operational expenses. High-quality fuels, engineered with advanced formulations, can significantly improve productivity.
“However, for many industries, the impact of fuel costs goes beyond just filling up tanks and mileage. Maintenance costs represent a significant portion of the company’s operational expenses. In industries where equipment downtime can lead to massive losses, minimising maintenance needs while maintaining optimal vehicle performance is crucial,” Shairan explained.
Industry Perspectives on Efficiency
Efficiency is a mandate for all industries, especially when navigating rising costs and regulations. Companies in logistics, agriculture, and manufacturing are increasingly adopting more advanced fuel solutions to manage costs and enhance performance. These steps are not just about staying competitive; they’re about shaping business resilience.
Fuel Smarter, Drive Longer: Go Further with Shell FuelSave Diesel
For Malaysian businesses striving for operational excellence, adopting Shell FuelSave Diesel can be a transformative decision. With its advanced Triple-Action Formula, Shell FuelSave Diesel addresses both immediate operational needs and long-term sustainability goals. This new formulation:
>Has been independently proven by experts to save fuel by up to 3.75% resulting in fewer refuels and more mileage for every ringgit spent.
>Beyond fuel saving, Shell FuelSave Diesel helps maximise vehicle productivity and has been shown to
recover 83% of power lost⁵ due to deposit accumulation.
>Deep-cleans modern diesel engines to prevent performance-hampering deposits that will build up in your vehicles or fleets over prolonged usage.⁶
>Up to 3.75% fuel saving and reduction in CO2 emissions⁶ through improved fuel economy.
The freight and logistics sector remains pivotal to Malaysia’s economic growth, fuelling the nation’s manufacturing and trade industries while adapting to the challenges of rising costs and sustainability mandates. As the sector continues to evolve, innovative solutions like Shell FuelSave Diesel demonstrate how operational efficiency can be fully achieved.
Shairan highlighted that “Malaysia’s logistics and freight sector is a critical driver in our economic development. Powering key industries from manufacturing to trade, our transportation infrastructure is fundamental to national progress, with fuel technology playing a pivotal role in our nation's potential. As we aim to equip Malaysia’s progress in key sectors, we are not just providing fuel solutions; we are investing in the industries that drive our nation’s advancement.
“Our advanced fuel solutions are designed to help businesses improve efficiency while addressing our nation’s broader economic goals. These efforts reflect a deeper understanding that technological innovation and national development are interconnected. By providing cutting-edge fuel technologies, Shell is enabling Malaysian businesses to become more competitive and efficient.
¹Malaysia Freight And Logistics Market Size & Share Analysis - Industry Research Report - Growth Trends
²Malaysia - Gross domestic product (GDP) growth rate 2029 | Statista
³ 45 Fleet Management Statistics to Help Reduce Operational Costs
4 Can save up to 7 litres of fuel per tank size of 195 litres. It helps to clean and protect key fuel system components, such as fuel injectors, from the build-up of performance- robbing deposits and hidden internal injector deposits. Compared to regular diesel without performance additives and with the same level of biocomponent. Based on Shell's proprietary test methods in a range of HD engines/vehicles (including on-road and off-road technology). Compared to regular diesel, showing up to a 3.75% fuel economy benefit under equivalent steady-state conditions at the end of the test. Actual savings may vary according to the vehicle, driving conditions, and driving style.
⁵Helps to clean and protect key fuel system components, such as fuel injectors, from the build-up of performance-robbing deposits. Based on a Shell proprietary test method in an HD vehicle. Actual savings may vary according to the vehicle, driving conditions, and driving style.
⁶ Based on reduced CO₂ emissions as a result of higher fuel economy using Shell FuelSave Diesel in a range of Shell proprietary tests in HD engines/vehicles (including on-road and off-road technology). Compared to regular diesel without performance additives and with the same level of biocomponent, showing up to a 3.75% fuel economy benefit under equivalent steady state conditions at the end of test. Actual savings may vary according to vehicle, driving conditions and driving style.
