Flash Express Retreats from Malaysia: A Grim Omen for E-commerce Competition
Thai logistics unicorn to axe 10,000 jobs as ‘self-preferencing’ by dominant platforms and exclusive tie-ups freeze out independent couriers
- Thai logistics company Flash Express is ceasing its Malaysian operations, which will result in the loss of over 10,000 jobs by February 2026.
- The company's exit is blamed on an "unbalanced playing field" where dominant e-commerce platforms use "self-preferencing" and exclusive deals to force merchants onto their affiliated courier services.
- This event is considered a warning for other markets like Thailand, where similar monopolistic practices by platforms like Shopee, Lazada, and TikTok could threaten independent logistics companies and cause widespread job losses without stronger regulation.
Thai logistics unicorn to axe 10,000 jobs as ‘self-preferencing’ by dominant platforms and exclusive tie-ups freeze out independent couriers.
Flash Express, the Thai-born logistics "unicorn," has announced a wholesale retreat from the Malaysian market, marking a significant escalation in the battle over e-commerce monopolies in Southeast Asia.
The firm is set to terminate its Malaysian operations and make over 10,000 employees redundant by February 2026.
While the official line from the company suggests a strategic restructuring to bolster efficiency, Parnchatra Sinsuk, reporting for Krungthep Turakij, notes that industry insiders tell a far more sobering story.
According to sources, the exit was precipitated by an "unbalanced playing field," where dominant e-commerce platforms have allegedly formed exclusive "special deals" with preferred couriers, systematically starving independent providers of the parcel volumes needed to survive.
The Rise of ‘Self-Preferencing’
The Flash Express exodus has cast a spotlight on "self-preferencing"—a practice where digital platforms manipulate algorithms to force merchants into using their proprietary or affiliated logistics services.
Analysts warn that this creates a closed-loop system where independent couriers are denied fair market access.
This structural squeeze is not merely a corporate dispute; it carries a heavy human cost.
In Malaysia, the loss of 10,000 jobs serves as a stark warning that digital monopolies can destabilise the broader labour market.
Furthermore, small-scale traders are feeling the pinch, facing a "double whammy" of rising commission fees and the mandatory use of platform-linked shipping, which often comes at a higher premium.
Thailand’s Precarious Boom
The timing is particularly awkward for Thailand. The domestic e-commerce market is currently thriving, growing 14% last year to reach a valuation of 1.1 trillion baht.
Thailand now sits as the second-largest e-commerce market in ASEAN, dominated by a trio of giants: Shopee (75% market share), Lazada (67%), and the rapidly ascending TikTok (51%).
TikTok’s unique integration of social media and retail is being scrutinised as a potential "game changer."
Critics argue that by linking content visibility directly to the use of their internal sales and delivery systems, such platforms can effectively bypass traditional competition laws.
Regulatory Inertia
Experts are now sounding the alarm for Bangkok. Unlike the European Union, which has introduced the Digital Markets Act to designate large platforms as "Gatekeepers," or Indonesia, which briefly banned TikTok Shop to protect local vendors, Thailand’s regulatory response remains sluggish.
While the Electronic Transactions Development Agency (ETDA) and the Trade Competition Commission (OTCC) began drafting anti-monopoly frameworks in mid-2025, neither has been officially gazetted as of December.
The lesson from the Flash Express retreat is clear: if regulators remain sidelined by political and economic pressures, Thailand risks a more severe crisis.
With hundreds of thousands of Thais employed in the logistics sector, the collapse of independent players could lead to a systemic employment shock, leaving the digital economy in the hands of a mere few.
