Latest news with #DHLExpressMalaysia&Brunei
New Straits Times
a day ago
- Business
- New Straits Times
Malaysia gains edge as trade diversifies
KUALA LUMPUR: Malaysia has what it takes to thrive in a volatile global landscape by capitalising on shifting trade flows and supply chain realignments, said DHL Express Malaysia & Brunei. Speaking at the Invest Asean-Malaysia Conference 2025, managing director Julian Neo said multinational corporations (MNCs) are quick to adapt to geopolitical disruptions, and Malaysia is increasingly benefiting from these shifts. "MNCs are agile. When the United States announced new tariffs, one company moved its production from Mexico to Penang within a week," he said. "That speaks volumes about Malaysia's appeal as a reliable and responsive alternative." Neo said the "China Plus X" strategy, where companies diversify production across Asean, is gaining traction, with Malaysia emerging as a major beneficiary. "This shift is fuelling both domestic and foreign direct investments, which are reshaping our economic landscape," he added. Neo noted that 60 per cent of DHL's revenue in Malaysia comes from MNCs, with the remaining 40 per cent driven by small and medium-sized enterprises (SMEs), reflecting a balanced and resilient economy. He emphasised the urgent need for supply chain diversification, citing trends such as near-shoring, re-shoring and friend-shoring. "To stay competitive, we must build resilient supply chains. Malaysia has a critical role to play, and DHL is supporting that with continued investments in artificial intelligence and automation," he said. Neo said technologies adopted during the Covid-19 crisis have helped streamline operations and positioned Malaysia as a key logistics hub in global trade networks. He also highlighted Malaysia's growing ties with emerging markets such as Mexico, Romania and the United Arab Emirates, calling them "important partners for the next wave of trade expansion." "To fully realise the benefits, we must pursue new free trade agreements and deepen engagement with these markets," he said. While MNCs are actively repositioning themselves, Neo voiced concern over local SMEs, many of whom remain hesitant. "Some SMEs are still taking a 'wait and see' approach. But now is the time to act. Use available data to identify trends, work with government agencies, and diversify to reduce over-reliance," he said. Despite the global uncertainties, Neo struck an optimistic tone. Citing DHL's Trade Atlas, he projected global trade to grow by 3.1 per cent between 2024 and 2029. "Even the US-China tensions, which only account for 2.6 per cent of global trade, are not enough to derail momentum," he said. "Global trade is too big to fail and Malaysia has all the right ingredients to succeed within this resilient ecosystem."
New Straits Times
a day ago
- Business
- New Straits Times
Malaysia poised for long-term benefits in Asean self-reliance drive
KUALA LUMPUR: Malaysia is well-positioned to reap long-term benefits as Asean intensifies efforts to build a more self-reliant and resilient regional economy amid shifting global dynamics. At the Invest Asean-Malaysia Conference, experts underscored Malaysia's strategic role in Asean's ambitions to deepen intra-regional cooperation and reduce dependence on external sources of capital, technology and supply chains. Nanyang Technological University Emeritus Professor Tan Kong Yam said Malaysia is central to Asean's strengthening ties with China, especially as global supply chains are realigned due to escalating tensions between the United States and China. "China views Asean as a strategic bridge out of its geopolitical encirclement," Tan said, citing long-term Chinese investments in infrastructure such as ports and transport networks in Malaysia. "These investments not only stimulate Malaysia's economy but also establish the foundation for a robust Asean-wide supply chain," he added. Tan also noted that Malaysia's respected standing in the Islamic world, bolstered by its leadership, enhances its position as a key partner in China's broader diplomatic and economic outreach. DHL Express Malaysia & Brunei managing director Julian Neo highlighted the significant progress Asean has made in strengthening supply chain resilience. "Asean has emerged stronger from crises such as SARS and the Covid-19 pandemic," he said, pointing to expanded investments in logistics infrastructure, including DHL's own facilities in Singapore and Malaysia, which have enhanced regional connectivity. Such improvements, he added, have positioned Malaysia as a growing logistics hub capable of handling increasing trade volumes and foreign direct investment into the region. Still, both Tan and Neo acknowledged that Asean's industrial capacity remains insufficient to achieve full self-sufficiency, with the region continuing to rely on imported components from countries such as China, Japan and South Korea. While China's cost advantages and scale make it an indispensable partner, Tan warned against overdependence on any single nation. He urged Asean, and Malaysia in particular, to diversify its supply chain linkages to include Japan, South Korea and even the United States. This diversification, he said, is key to reducing vulnerabilities and strengthening the region's industrial base. By cultivating partnerships across multiple economies, Asean can gradually build self-sufficiency in critical sectors. Tan also pointed to emerging global strategies — such as nearshoring, friend-shoring and onshoring — as opening new opportunities for Malaysia. With global manufacturers seeking to diversify operations away from traditional hubs, Malaysia's competitive labour costs, improving infrastructure and strategic proximity to key markets make it an increasingly attractive destination. He cited Apple's internal calculations showing that relocating large-scale manufacturing to the United States would increase costs by six to seven times compared to China — underscoring Malaysia's cost-effectiveness in the global production chain. Neo, meanwhile, noted a growing demand for shorter lead times in global supply chains. With ongoing investments in logistics hubs and technological upgrades, he said Malaysia is well-equipped to support this shift — further reinforcing its role in the global economy.
