FedEx to expand capacity in Malaysia this year

This article first appeared in The Edge Financial Daily, on January 11, 2019.
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BAYAN LEPAS: Following the launch of its new integrated facilities at the Penang International Airport yesterday, FedEx is going to open other new facilities for parcel sorting and delivery in Malaysia — one in Seberang Perai and one in Johor this year.

“We see that [for Penang] the business trend is moving towards the mainland,” FedEx Malaysia group managing director SC Chong told the media at the launch yesterday, although he declined to give further details of the new facilities.

Penang Chief Minister Chow Kon Yeow, who was at the launch, said he sees higher demand for logistic facilities to support the manufacturing industry in Seberang Perai. “FedEx’s new facilities will serve businesses on the mainland,” he said.

Yesterday, FedEx announced that it had invested RM17.6 million in its most recent upgrade of its Penang International Airport facilities, the first of its kind in Malaysia to feature X-ray scanning for all packages.

With the capacity to move up to 2,700 packages per hour, the 52,000 sq ft facility will be serviced by two dedicated Boeing 767 freighters capable of next-day deliveries to major cities in the US and Asia.

“The facility also supports the FedEx Asia Road Network connecting all key markets in Southeast Asia and China,” FedEx said.

Separately, FedEx has observed that Penang manufacturers have in fact seen an increase in trade activity in recent months, despite concerns that trade tensions may dampen growth.

Chow said Penang has gained new opportunities as a result of the trade war.

“According to Invest Penang, we’ve received even more enquiries from multinationals which want to relocate [their operations] here,” he said.