Ground handler GTR Malaysia, certified by the Civil Aviation Authority of Malaysia (CAAM) and the Malaysian Aviation Commission (MAVCOM), said Malaysia’s strategic location, strong regional connectivity, investments and extensive trade agreements give it a competitive edge in expanding its role in the regional cargo market. 

Musdalifa Bin Abdullah, CEO of Ground Team Red (GTR) Malaysia, told Asia Cargo News that Malaysia’s air cargo sector has “rebounded strongly” after pandemic-related downturns. 

“Malaysia’s air cargo sector has shown remarkable resilience and growth, fueled by global supply chain diversification strategies, including the China Plus One approach,” he said, adding that Q2 cargo volumes reached 5.2 billion freight tonne-kilometres (FTKs), representing a 14.3% year-on-year increase, citing data from the Malaysian Aviation Commission. 

“MAVCOM forecasts 10-12.5% annual growth for 2024, projecting total volumes between 20.8-21.2 billion FTKs,” the GTR Malaysia chief added, noting that this puts the sector on track to recover up to 89% of pre-pandemic traffic levels. 

“This growth reflects Malaysia’s strategic positioning within evolving global logistics patterns, particularly the shift toward multi-hub networks,” Abdullah said. 

Malaysia has emerged in recent years as a key beneficiary of omni-sourcing strategies, particularly among ASEAN mainland countries, due to its strong infrastructure and well-developed supply chain networks, especially in electronics and semiconductors. 

The tech and electronics sectors are increasingly shifting operations to Malaysia in response to rising labour costs and geopolitical risks, and Malaysia’s role in the global semiconductor industry offers a stable alternative for companies seeking to diversify their supply chains. 

Abdullah told Asia Cargo News that Kuala Lumpur International Airport (KLIA) has also become a critical node for time-sensitive shipments, especially in high-value sectors like e-commerce and pharmaceuticals. 

GTR provides ground handling services, including cargo operations, at Kuala Lumpur International Airport (KLIA/KLIA2), Malaysia’s largest and busiest cargo hub. 

The GTR Malaysia chief said the company alone has delivered “exceptional performance” in the air cargo sector for 2024, handling nearly 132,000 tonnes– marking a 53% year-on-year increase. In the fourth quarter of last year, GTR Malaysia transported approximately 39,000 tonnes, a 31% rise compared to the same period the previous year. 

“This impressive performance contextualizes the broader market trends. When viewed against the Malaysian aviation landscape, MAVCOM’s broader sector data further illuminates the market dynamics,” Abdullah said. “This sustained growth is primarily driven by expanding ecommerce demand and strengthening regional trade networks, confirming Malaysia’s rising prominence in the regional air cargo landscape.” 

Meanwhile, he said that the company has expanded its air cargo operations with a new 73,000-square-foot hub at KLIA, significantly increasing its annual handling capacity to over 200,000 tons. The facility also supports wide-body aircraft and includes a 5,000-square-foot agent build-up area. 

Abdullah noted that this design includes specialized zones for temperature-controlled pharmaceuticals, dangerous goods handling and advanced security scanning technology. The hub features specialized zones for temperature-controlled pharmaceuticals, hazardous materials handling and advanced security scanning technology. 

“The hub strategically targets key growth sectors – ecommerce, pharmaceuticals and technology – by leveraging Malaysia's expanding regional trade corridors and visa-free policies for Indian and Chinese visitors,” he told Asia Cargo News. “By integrating advanced infrastructure with targeted sector focus, GTR Malaysia is not just expanding capacity, but reimagining air cargo logistics for the next generation of regional trade.” 

Aside from existing investments in technology and infrastructure, GTR Malaysia – a joint venture between AirAsia and SATS – is also prioritizing sustainability in its operations.  

GTR Malaysia said it has made significant strides in implementing sustainable practices with substantial investments in electric vehicle (EV) technology. The company has purchased 60 EV tractors, with 20 units delivered in November 2024 and now in operation. These EVs reduce carbon emissions by over 60% compared to their diesel counterparts and are actively deployed in both cargo and ramp operations. 

The company has also introduced electric forklifts throughout its warehouse facilities, further reducing carbon emissions while improving workplace safety by minimizing cargo agents’ exposure to harmful diesel fumes that are typical of conventional forklifts. 

“This comprehensive electrification strategy demonstrates GTR’s holistic approach to operational sustainability. The company’s environmental initiatives extend beyond vehicle electrification to include advanced automation through motorized material handling systems and next-generation cargo scanning technology, which have significantly enhanced operational efficiency while strengthening security protocols,” Abdullah said. 

He noted that recent facility investments also prioritize energy efficiency and optimized cold-chain infrastructure, further supporting industry-wide carbon footprint reduction. 

“GTR’s proactive approach to sustainability aligns with Malaysia’s broader logistics sector evolution toward greener operations, positioning the company as an environmental leader in the regional air cargo landscape,” Abdullah said. 

Abdullah then called for greater regional cooperation to further bolster Kuala Lumpur's position as a key logistics hub in Southeast Asia. “At the IASEA (Inter Airport Southeast Asia) 2025, we emphasize that regional collaboration remains essential to enhance efficiency, sustainability, and competitiveness as Malaysia strengthens its position as a premier logistics gateway in Southeast Asia.”