Zero fee hits parcel delivery sector

Courier companies are suffering from severe margin compressions due to service dumping, and this rife competition is slowly weeding out local players.An industry official explained to StarBiz that this is why the industry is in need of fresh regulations.

PETALING JAYA: Service dumping continues to be a dampener on the already crowded parcel delivery market in Malaysia, stamping out courier companies that are unable to provide low to zero rates.

According to data derived from the Malaysian Communications and Multimedia Commission’s (MCMC) website, from January to June this year alone, the number of licensed courier service providers have decreased by five to 111 players.