PETALING JAYA: A planned courier licensing framework by the government will likely lead to a consolidation among industry players in Malaysia.
This is a positive development for the industry since smaller players that are unable to comply with the new structure will be forced to exit the market or integrate with other players and eventually reduce the number of competitors in the industry, Hong Leong Investment Bank Research (HLIB Research) said.
“Barriers to entry have also been increased to avoid uncommitted new competitors from coming in. We reckon this new structure will move the industry into a more mature stage of business cycle,” HLIB Research said.
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