Malaysia’s progress on logistics has failed to keep pace with its growth in trade.Developing countries in this region are now catching up, so faster progress on logistics development will be crucial to sustaining Malaysia’s competitive advantages. High logistics costs in Malaysia derive from poor transport infrastructure, under developed transport and logistics services and slow and costly bureaucratic procedures for dealing with both exported and imported goods. The balance among these three varies among countries in the region but in each country, a complementary approach to address all of them will be needed to produce a sustainable improvement in competitiveness