ASEAN-BAC calls for improved logistics services in Asia for increased ecommerce operations

Chairman Tan Sri Mohd Munir Abdul Majid said there’s up to nine times growth potential in the ecommerce sector in Asean alone, therakyatpost.com reports. Munir also expressed that: “In the US, UK and China, the total turnover in ecommerce in the retail industry is about 8% to 9%. But in Asean, it’s only 1%,”, the source reports.

In terms of logistics, Mohd Munir said there should be an improved logistics system so that goods can be delivered on time and in good condition. In an effort to boost the economic growth in Asean, the Asean-BAC has obtained the commitment during its dialogue with Asean Economic Ministers last August to set up four working groups before end-2015.

The working groups will comprise of officials and business representatives for concentrated effort in four sectors: healthcare, agri-food, logistics and ecommerce. He also said the Asean financial platform – Asean Growth Accelerator Exchange (GAX) – will be officially launched by the end of next week in Kuala Lumpur. The GAX is a private sector initiative to provide e-finance as well as other forms of electronic facilitation to Asean micro businesses and small-and-medium enterprises (SMEs).

“GAX is not equities or bond financing. It’s a platform whereby we do peer-to-peer financing and loan crown funding. “The most important thing for GAX to be successful is the regulatory acceptance in other countries.”, the source cites. He said there are many similar financial platforms in China and US. While Asean is following suit, the platforms are very limited in terms of the financial products offered and territories covered.