David Ng, Managing Director, DHL Express Malaysia
Logistics sector is part of ETP
While global economic growth remained lackluster in 2013, global growth in 2014 is expected to accelerate. The pick-up in performance in advanced economies through the year suggest that activity is close to stabilizing in the periphery and already recovering in the core economies1. Emerging markets still account as the key drivers towards global recovery with modest growth throughout the year. With the recovery in advanced economy and the consistent growth of emerging markets, we can expect to see some significant uptrends in 2015.2
Despite the economic slowdown, the economic outlook continues to evolve in Asia with emerging markets taking the lead in preserving the economy. Asia’s growth has assisted to protect the region from the effects of the financial crisis elsewhere. Being a region built on trade, Asia’s economic success can be attributed mainly to exports to the developed world. Intra-regional trade is becoming evidently important as Asia transforms from a source of cost-effective production to a strong economic bloc. The intra-Asia trade corridor is now the fastest growing trade area as it represents 25 percent of Asia’s total US$6 trillion annual exports which is forecasted to steadily rise. 3
Despite the economic volatility, DHL announced a RM28 million [US$8.52 million] investment to upgrade its facilities that will further fuel future growth and presence in Malaysia. As part of the upgrades for 2013, we introduced the A300 freighter operated by Air Hong Kong, a joint venture with Cathay Pacific, in Penang and the Boeing 737 freighter route in ASEAN connecting Subang in Malaysia to Singapore which increased capacity by over 30 per cent. 2013 also saw eight new retail outlets strategically located across the country, bringing DHL Express’ total retail footprint to 38.
Later in the year, DHL launched a new range of temperature-controlled packaging as part of its DHL Medical Express services. These additional services are part of DHL’s expansion plan to further stamp its commitment to expand Malaysia’s connectivity globally, while providing enhanced capabilities to deliver more shipment in 2014 and the coming years.
2014 will be an exciting year for DHL Express as we continue to expand our presence and services throughout Malaysia. With the recently announced Logistics Sector Master Plan in place, continued focus and the upgrading of national infrastructure will sanction materials to be transported across the country in the fastest way possible, to keep up with the demands of Malaysia’s economic growth under the Economic Transformation Programme (ETP). As the first international courier company to set up in Malaysia, we have and will continue to shape the local logistics scene specializing in key industries such as electronics, aerospace, financial services, healthcare and oil and gas.
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