International eCommerce Players for DFTZ Being Locked In

After Digital Free Trade Zone (DFTZ) came online, many thought this seals the exclusive arrangement with Alibaba; that is until the Malaysia Digital Economy Corporation (MDEC) reiterated that it’s locking in international eCommerce players for DFTZ.

This plan is something that MDEC has included in the DFTZ development pipeline from the very beginning. One of the core tenets for this new trading platform is to make it open to all service providers; this is the primary reason MDEC has always maintained this initiative isn’t Alibaba exclusive.

According to a New Straits Times news report, the government is in talks with several international e-commerce players. “We are fine-tuning the details now,” says Deputy Minister of International Trade and Industry, Datuk Chua Tee Yong.

The DFTZ belongs to the government for now and it’s logical for it to work with various parties. Since it enables businesses and service providers to export their goods, it must be accessible to all.

“We are now seeking qualified investors who have the financial muscles to participate in the DFTZ. Having ties to an efficient logistics network is an added bonus,” Chua adds.

Furthermore, Malaysia has slightly over 900,000 SMEs, all of which represents about 99% of total business establishments in the country. Even so, the amount of SMEs that have on-boarded with DFTZ, to-date, barely scratches the surface.

While more SMEs are registering everyday, there is so much to accomplish; the end-goal is make them understand all benefits from working with DFTZ.

As MDEC reiterates how DFTZ is not working exclusively with Alibaba, there is the question of what’s next. Everyone thinks Amazon is jumping in soon. It makes sense seeing as the American eCommerce innovator ventured into Singapore and spectacularly trip itself up.

Even as all eyes are on Amazon, Chua did not drop any hints. In fact, the government is keeping mum about who these international eCommerce players are at the discussion table as well.

Of course, SMEs and the logistics industry don’t have to wait long as there will be a show-and-tell soon. Indeed, there should be details about Phase 2 for DFTZ just before Q2 2018 ends.

(Source: NST)
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