GEORGE TOWN (Jan 9): Following the launch of its new integrated facilities at the Penang International Airport, global logistics services provider FedEx is training its sights on the mainland for further expansion.

FedEx Malaysia group managing director SC Chong said the group will be launching a new facility there after this year.

"We see that the business trend is moving towards the mainland," he told reporters today, declining to give further details of the facility.

Penang Chief Minister Chow Kon Yeow said opportunities for service providers on the mainland is growing as logistics facilities will be required to support the growth of manufacturing activities in Seberang Perai.

NASDAQ-listed Micron Technology Inc recently announced that it would invest RM1.5 billion for the next five years to build a centre of excellence for solid state drive assembly and test in Batu Kawan on the mainland.

Chong also said Penang manufacturers have experienced an increase in trade activity in recent months, despite concerns that the US-China trade tensions may dampen growth.

"But whether Malaysia can capitalise on that depends on the readiness of manufacturers — they will need to have more agile supply chains," Chong said.

FedEx has invested RM17.6 million in its most recent upgrade of its Penang facilities, which is the first of its kind in Malaysia to screen all packages via X-ray, regardless of size.

With the capacity to move up to 2,700 packages per hour, the new development will be serviced by two FedEx aircraft daily.