Analysis on the Efficiency of Logistics Companies in Malaysia Using Data Envelopment Analysis Model

The logistics industry plays an imminent role in the economic development in Malaysia. However, with operational and growth complexities, the logistics industry has been lagging due to unbearable costs. Data envelopment analysis (DEA), which is a linear programming model, has grown in popularity to study the efficiency of companies. Therefore, DEA is used to evaluate the performances of the 27 listed logistics companies in Malaysia from 2010–2021. This study found that only 33.33% of the companies are well-performing with the lowest efficiency level being 16.39%. From the optimal solution of DEA, this paper then offers insights to underperforming companies to improve based on the highest performing companies. This paper is also the pioneer in evaluating the performances of the listed logistics companies in Malaysia for the long run.