KUALA LUMPUR: The Malaysia External Trade Development Corp (Matrade) has inked a memorandum of understanding (MoU) with China Post Group of Guangxi Zhuang autonomous region branch and KCO Logistics & Distribution Services Sdn Bhd to develop a virtual Malaysia Pavilion dedicated to local brands on China Post’s eCommerce portal called ule.com.
ule.com is a China Post eCommerce platform that connects the offline outlets with online and mobile services, supported by China Post’s extensive logistics network.
China Post will provide the online and offline platforms while KCO Logistics — a Malaysian logistics company based in Guangxi — will be China Post’s logistics provider.
The setting up of the virtual Malaysia Pavilion on ule.com would see China Post pledging to import 2,000 single kind units (SKUs) of Malaysian products for one year for about RM300 million.
The products range from food products, health & wellness products to fast-moving consumer goods and will also be made accessible to China Post’s 600,000 offline stores in China.
Among Malaysian brands to be featured are Julie’s, Regency Coffee and Furley.
Matrade chief executive officer Dr Mohd Shahreen Zainooren Madros, Guangxi Post chief executive officer Li Taile and KCO Logistics managing director Andy Oon signed the MoU during the China-Asean Expo 2017.
Shahreen said Matrade will continue to explore various platforms, especially eCommerce platforms, to facilitate entry of Malaysian products into China that has a market of 1.35 billion people.
“This MOU will pave the way for products by Malaysian small and medium enterprises (SMEs) to be marketed on China Post’s vast online and offline networks,” he said.
He added that Matrade, through its offices in China, will assist promoting Malaysian enterprises on the platforms and identify quality local brands and products as well as facilitate organising business matching sessions and sourcing programmes for Malaysian companies.