This article first appeared in The Edge Financial Daily, on January 5, 2016.

GEORGE TOWN: Hong Kong-listed Kerry Logistics Network Ltd, which is controlled by the family of Malaysian tycoon Tan Sri Robert Kuok, expects a double-digit growth in revenue from the Southeast Asia (SEA) region by the financial year ending Dec 31, 2020, with its new information technology (IT) development centre here.

Kerry Logistics chairman George Yeo told reporters yesterday that although the percentage contribution from SEA to the group’s overall portfolio is relatively small now, the IT development centre would cater to the rising logistics sector in the region.

“In tandem with its business expansion in the Association of Southeast Asian Nations and beyond is the rising demand for IT application systems and support. As part of its overall IT development strategy, Kerry Logistics will use the new centre in Penang as an offshore support centre to share resources among different offices globally to increase operational efficiency at [a] lower cost,” the company said in a statement.

Yeo said while the IT centre would serve SEA for now, the group’s software development would, in years to come, shift from China to Penang, from where it would be providing its services to its global clientele.

As such, the group plans to raise the number of software programmers at its new IT centre from 10 to 50 by 2017, he said, adding that they would be in charge of customised IT solutions while based in Penang.

“There is great potential in Penang. The government has played an important role in promoting IT development in this city, making it one of the preferred Asia technology bases of many international IT giants.

“Establishing our IT centre here will provide us readily available local IT resources, a strong pool of multilingual talents and good infrastructure support,” he said at the opening of the centre.

Yeo also said Kerry Logistics “has high ambitions” to grow its express and associated services in Malaysia because the country is an important location as a transit point for its trucking service from China to Singapore.

Kerry Logistics, a subsidiary of Kerry Properties Ltd, is part of the Kerry Group owned by the Kuok family. Its core businesses include integrated logistics, international freight forwarding and supply chain solutions.