Business

Published: Friday November 13, 2009 MYT 1:59:00 PM
Updated: Friday November 13, 2009 MYT 2:04:31 PM

DHL confident ops in M'sia will stay profitable


SINGAPORE: DHL, the global market leader in express mail and logistics industry, is confident its operations in Malaysia will stay profitable despite many challenges in the global economic environment.

Amadou Diallo, Chief Executive Officer of DHL Global Forwarding for South Asia-Pacific and Angola, said by providing specific and alternative solutions as well as diversifying its portfolio in different business segments, DHL is optimistic of riding through the tough and challenging times.

In view of increasing demand for alternative solutions due to circumstances such as port congestions and unpredictable mishaps and delays at airport terminals, he said DHL has started its pilot project for an innovative road solution system in Malaysia early this year.

"In Malaysia we are looking at an investment of two million euros to put in place innovative road transportation which links Singapore, Thailand and Malaysia," he told Malaysian journalists attending a media workshop and tour of DHL facilities in Singapore.

Diallo said the road transportation link will also provide more cost-effective solutions for clients.

"Malaysia is an important market in the South East Asia region due to its connectivity to countries in the region," he said.

He said while most people are still cautious on the pace of the global economic recovery, it did not mean there was no potential for growth in the Malaysian market.

"We see growth in the Halal food and potential in the fashion apparels industry. The life sciences will also remain resilient in this economic environment," Diallo said.

Besides diversifying into these sectors, he said the global economic crisis indicated that there should not be concentration only on few markets.

He said small and medium enterprises in Malaysia could look into diversifying into the Middle East and African markets which are increasing in potential.

Sam Ang, Chief Executive Officer of DHL Global Forwarding for South East Asia region, said there are signs since one or two months ago that things are picking up in Malaysia.

"The downtrend was last year when we experienced slowing down in volume of orders in Malaysia in line with the overall softening of the global eocnomic environment," he said in an interview with the Malaysian media.

Ang said there is also a double whammy impact for Malaysia as besides a downtrend in businesses due to the global economic crisis last year, there was also effects from intensifying competition from other regions.

While there are signs of a global economic recovery for this year, he said the cautious mood still prevails.

Diallo also anticipated that freight rates (for both air and sea) to rise in line with the recovery of the global economy which shows that there is a capacity shortage.

CEO of DHL Global Forwarding and Freight Hermann Ude said going forward, Asia, Latin America and Middle East will shape the direction and the future for economic and commercial expansion.

In his presentation to journalists from the Asia-Pacific regiony, Ude said three trade triangles centred around Asia are expected to contribute almost 40 per cent of global trade by 2028.

He said findings from research report by DHL, within the three identified triangles of trade - Intra Asia, Middle East-Africa-Asia and Latin America-Asia, China's imports of raw materials and exports of various manufactured goods dominate trade volumes.

Ude said DHL has invested close to US$2.2 billion in Asia and will accelerate the speed of its investments in the region.

"We aim to be the Mo. 1 in terms of customer loyalty by 2012 through our group-wide programme called "First choice"," he said.

The objective of the programme, introduced since early 2007, is to analyse work procedures, identify problems in processes and systematically develop solutions.

Over 21,000 managers and employees have been trained in the First Choice systems and more than 110,000 employees have been directly integrated into the programme. - Bernama

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