Latest news with #intra-Asia
New Straits Times
2 days ago
- Business
- New Straits Times
Ports, logistics sector brace for cost impact of US tariff
KUALA LUMPUR: A steeper 19 per cent United States tariff on Malaysian goods, compared with 10 per cent for Singapore, could raise export costs and slow the movement of certain commodities through Malaysia's trade routes, industry players said. Port Klang Authority general manager Captain K. Subramaniam said the higher tariff may place added cost pressures on exporters and reduce trade volumes for commodities routed via Malaysia. However, he said the overall impact on Port Klang's competitiveness is expected to be measured, as the port primarily serves as a transshipment and regional hub rather than a major exporter of US-bound cargo. "Port Klang expects to remain buoyant on the back of strong intra-Asia trade and robust shipping connectivity. "Its competitiveness is anchored not only in tariff considerations but also in its strategic location, cost-efficiency, growing terminal capacity, and comprehensive logistics support," he told Business Times. To retain and grow transshipment volumes, he said Malaysia, particularly Port Klang, is focusing on several key strategies to enhance efficiency and competitiveness. He added that ongoing terminal upgrades and future expansions, including the Westports 2 development, are aimed at increasing capacity and improving turnaround times. The longer-term port capacity expansion plan also includes the Carey Island Port project to cater for future growth. Additionally, Subramaniam said that in terms of digitalisation and trade facilitation, terminal systems are constantly upgraded, adopting the latest digital technologies to ensure speedy and secure data transfer for more efficient supply chain management. On cost competitiveness, he said ports in Malaysia offer top-notch port, logistics, and value-added services at competitive rates, appealing to global shipping lines and logistics companies. Meanwhile, Federation of Malaysian Freight Forwarders president Datuk Dr Tony Chia Han Teun said the recent tariff changes announced by the US raise significant concerns for Malaysia's trade competitiveness and the logistics sector. He added that this differential could potentially divert transshipment and direct export volumes from Malaysian ports to Singapore, especially for high-value goods where even a few percentage points make a commercial difference. "Malaysia has long served as a strategic hub in regional supply chains, and any tariff disadvantage may encourage multinationals and logistics planners to reroute cargo flows. "This could impact not only our port throughput but also the broader ecosystem, including freight forwarding, warehousing, and value-added logistics services," he said. Chia urged the relevant authorities to engage in dialogue with their US counterparts to clarify the rationale behind the tariff differential and explore avenues for mitigation. "At the same time, we must intensify efforts to enhance port efficiency, reduce last-mile costs, and leverage free trade agreements to maintain Malaysia's position as a competitive and attractive logistics gateway in Asean," he added. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the newly imposed 19 per cent tariff on Malaysian exports to the US is reasonable and will not threaten the country's competitiveness. He added that although Malaysia had hoped for a lower tariff rate, the outcome of the negotiations was fair, as it was achieved without compromising the nation's core policies or sovereignty.
Business Times
22-07-2025
- Business
- Business Times
HPH Trust records unchanged H1 DPU of HK$0.05 despite higher profit
[SINGAPORE] Hutchison Port Holdings (HPH) Trust reported a distribution per unit of HK$0.05 for the first half ended Jun 30, 2025, unchanged from the corresponding year-ago period. This was despite net profit surging 67.6 per cent to HK$265.1 million (S$43.3 million), from HK$158.1 million in H1 2024, based on a Tuesday (Jul 22) evening bourse filing. The distribution will be paid out on or about Sep 19, after books closure on Jul 30. Revenue and other income rose 6.3 per cent to HK$5.7 billion from HK$5.3 billion a year prior. This came as container throughput at the trust's Yantian International Container Terminals in China grew 12.7 per cent year on year, primarily driven by the increase in laden export, inbound empty and transshipment cargoes. But the combined container throughput of the trust's other ports in Kwai Tsing, Hong Kong, slipped 3.3 per cent in H1 2025, against H1 2024. The average revenue per container for Hong Kong was higher than last year, mainly attributed to higher storage income; but it fell for mainland China, mainly due to a higher portion of empty and transshipment cargoes. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Outbound cargoes to the European Union (EU) increased by about 15 per cent in the first half of 2025, whereas volume to the US dropped by 5 per cent, its manager said. Cost of services rendered was HK$1.8 billion, up 4.5 per cent from H1 2024's HK$1.7 billion, mainly attributed to higher throughput. China's exports to the US saw a significant drop since the start of May due to 'staggering' US tariffs, the manager said, adding that this has recovered moderately following the mutual pause on reciprocal tariffs. While growth in China's exports to the EU is expected to continue growing in H2, prolonged port congestions could adversely impact trade volumes, it said. Meanwhile, if trade deals with Asian nations fail to materialise after the reciprocal tariff pause expires, 'the sudden reinstatement of higher tariffs and possible sectoral tariffs by the US government could trigger fresh turmoil in global trade, particularly for intra-Asia trade', the manager said. HPH Trust is also monitoring disruptions to shipping caused by attacks in the Red Sea and geopolitical tensions in the Middle East. As at Jun 30, 2025, 50 per cent of HPH Trust's debts were on a fixed interest-rate. The sharp fall in Hong Kong Interbank Offered Rate (HIBOR) in Q2 2025 was largely driven by direct intervention of the Hong Kong Monetary Authority to defend the currency peg, the trust's manager said, adding that it remains uncertain whether the rate will remain at this lower level. HPH Trust's monthly interest expense would increase by about HK$2.6 million for every 25 basis points rise in HIBOR, it added. The manager said that interest expense will increase when the trust refinances its maturing debts in 2026 that were drawn at the low end of the interest rate cycle four years ago. Units of HPH Trust closed up 0.6 per cent or US$0.001 at US$0.184 on Tuesday, before the announcement.
Business Times
04-07-2025
- Business
- Business Times
Pelita Air to operate from T4 when it lands in Singapore, likely using Jetstar premises
[SINGAPORE] Indonesia's Pelita Air Service is said to be taking over the check-in premises of Jetstar Asia at Changi Airport terminal 4 after the budget carrier exits, The Business Times understands. This marks the first venture into the international market for the carrier, which has been serving domestic routes in its Indonesian home base. When asked to confirm its landing in Singapore's Changi Airport T4, Pelita Air's corporate secretary told BT it is currently finalising all necessary requirements and approvals. 'As for the exact date of the inaugural flight, we're waiting for an official release from management,' the corporate secretary added. Based on BT's understanding, the airline could make its inaugural Singapore flight in December. Also, ground handler and inflight caterer Sats will be serving Pelita Air. The carrier has earlier reportedly said it will start flights to Singapore this year, followed by Bangkok next year. It chose the city-state as the initial international destination due to its short flight duration and high traffic volume. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Delays in delivery of six A320s have resulted in Pelita Air expecting only four new planes this year, based on a March report. The carrier was started by Indonesian oil and natural gas player Pertamina to replace its air service department in 1970. Today, it serves economy and premium classes, covering 17 domestic destinations including Jakarta, Kendari and Sorong, based on its website. As Changi Airport prepares to receive Pelita Air, it will be bidding farewell to an airline based in Singapore. Budget carrier Jetstar Asia earlier announced that it is exiting Singapore for good on Jul 31, closing a chapter of about 20 years being the third carrier anchored in Changi Airport. Jetstar Asia operates out of T4 and its departure will affect 16 intra-Asia routes but will not have an impact on sister airlines Jetstar Airways and Jetstar Japan, with them continuing their current schedules, including Jetstar Airways' flights between Australia and Singapore. Jetstar Asia carried some 2.3 million passengers or 3 per cent of Changi Airport's total passenger traffic in 2024, but it has been racking up losses amid increased competition and costs.
Hans India
28-06-2025
- Business
- Hans India
Transportation, logistics lead deal value
New Delhi: India's transportation and logistics sector gained significant traction in the first half of 2025, with total deal value surging to $609.7 million, marking a robust 85 per cent increase from H1 2024, according to a report on Friday. Deal volumes grew substantially from 16 to 25, reflecting stronger investor confidence and sustained interest in the sector's transformation, according to the Grant Thornton Bharat report. India's logistics sector is navigating a dynamic phase marked by steady demand, evolving cost structures, and a growing emphasis on sustainability. 'While rising freight and servicing costs continue to weigh on margins, inventory movement remains resilient. The sector is also making measurable strides in sustainability, with significant investments in digital infrastructure and low-emission facilities, alongside policy tailwinds aimed at reducing costs and improving turnaround time,' the findings showed. The surge in mergers and acquisitions (M&A) values for Q2 2025 was driven by landmark deals such as Delhivery's acquisition of Ecom Express. Private equity investors continued backing digital-first logistics companies such as SmartShift (Porter), Routematic, and Celcius Logistics, indicating confidence in scalable, asset-light models that bring efficiency to fragmented last-mile and intra-city delivery, the report mentioned. Meanwhile, freight rates have surged by up to 28 per cent on key trans-Pacific and intra-Asia routes, primarily due to port congestion and container shortages in China. Container pile-ups in East Asia have reduced availability in South Asia, forcing Indian exporters to pay premiums for guaranteed slots. 'The logistics industry is at the forefront of addressing climate change, with sustainability rapidly evolving from a regulatory requirement to a business imperative. Integrating ESG-aligned logistics into corporate strategies will boost sustainability credentials with investors, consumers, and regulators alike,' the report emphasised.
The Star
21-06-2025
- Business
- The Star
South-East Asia's budget airlines bet on travel demand, despite competition woes: Analysis
SEOUL: South-East Asia's biggest budget airlines are pursuing a bruising capacity expansion race despite rising cost pressures that are squeezing profitability and led Qantas Airways to shut down Singapore-based offshoot Jetstar Asia. Low-cost carriers have proliferated in Asia in the past two decades as disposable incomes rise, supported by robust travel demand from Chinese tourists. Demand for air travel in Asia is expected to grow faster than other regions in the next few decades and carriers like Vietnam's VietJet Aviation and Malaysia-headquartered AirAsia are to buy more planes to add to their already large orderbooks as they seek to gain market share. But margins are thinner than in other regions. The International Air Transport Association (IATA), an airline industry body, this year expects Asia-Pacific airlines to make a net profit margin of 1.9%, compared with a global average of 3.7%. Airlines across Asia have largely restored capacity since the pandemic, which has intensified competition, especially for price-sensitive budget travellers, and pulled airfares down from recent high levels. International airfares in Asia dropped 12% in 2024 from 2023, ForwardKeys data shows. AirAsia, the region's largest budget carrier, reported a 9% decline in average airfares in the first quarter as it added capacity and passed savings from lower fuel prices onto its customers. Adding to challenges for airlines, costs such as labour and airport charges are also rising, while a shortage of new planes is driving up leasing and maintenance fees. This shifting landscape prompted Australia's Qantas to announce last week that its loss-making low-cost intra-Asia subsidiary Jetstar Asia would shut down by the end of July after two decades of operations. Jetstar Asia said it had seen "really high cost increases" at its Singapore base, including double-digit rises in fuel, airport fees, ground handling and security charges. "It is a very thin buffer, and with margins this low, any cost increase can impact an airline's viability," said IATA Asia-Pacific Vice President Sheldon Hee, adding that operating costs were escalating in the region. Aviation data firm OAG in a February white paper said Asia-Pacific was the world's most competitive aviation market, with airfares driven down by rapid capacity expansion "perhaps to a point where profits are compromised". "Balancing supply to demand and costs to revenue have never been more critical," the report said of the region's airlines. South-East Asia has an unusually high concentration of international budget flights. Around two-thirds of international seats within South-East Asia so far this year were on budget carriers, compared to about one-third of international seats globally, CAPA Centre for Aviation data shows. Qantas took the option to move Jetstar Asia's aircraft to more cost-efficient operations in Australia and New Zealand rather than continue to lose money, analysts say. Budget operators in South-East Asia were struggling for profits amid fierce competition even before the pandemic and now there is the added factor of higher costs, said Asia-based independent aviation analyst Brendan Sobie. Low-cost carriers offer bargain fares by driving operating costs as low as possible. Large fleets of one aircraft type drive efficiencies of scale. Jetstar Asia was much smaller than local rivals, with only 13 aircraft. As of March 31, Singapore Airlines' budget offshoot Scoot had 53 planes, AirAsia had 225 and VietJet had 117, including its Thai arm. Low-cost Philippine carrier Cebu Pacific had 99. All four are adding more planes to their fleets this year and further into the future. VietJet on Tuesday signed a provisional deal to buy up to another 150 single-aisle Airbus planes at the Paris Airshow, in a move it said was just the beginning as the airline pursues ambitious growth. The deal comes weeks after it ordered 20 A330neo wide-body planes, alongside an outstanding order for 200 Boeing 737 MAX jets. AirAsia, which has an existing orderbook of at least 350 planes, is also in talks to buy 50 to 70 long-range single-aisle jetliners, and 100 regional jets that could allow it to expand to more destinations, its CEO Tony Fernandes said on Wednesday. "At the end of the day, it is go big or go home," said Subhas Menon, director general of the Association of Asia Pacific Airlines. - Reuters
