GDEX to enhance solutions for business resilience

Group chief executive officer and managing director Teong Teck Lean said digital and technological competencies would form the core of the company’s new products and business segments.

KUALA LUMPUR: GDEX Bhd will be enhancing its digital and technological competencies as part of its growth strategies, moving forward.

Group chief executive officer and managing director Teong Teck Lean said digital and technological competencies would form the core of the company’s new products and business segments.

“The Covid-19 pandemic has brought greater focus on the importance of business resiliency and the need to think out of the box to develop innovative solutions.

“In this regard, the partnership between the public and private sectors has become imperative and GDEX will step up collaboration and partnership efforts in our drive towards bringing better solutions to the market,” he said in the company’s latest annual report.

GDEX is principally involved in the provision of express delivery services, logistics services and property investment holdings.

Additionally, GDEX will continue to develop new products that are aimed at providing comprehensive digital solutions for customers and excellence in service quality in delivering its logistics services.

“Our expertise and close rapport with our customers and our penchant for adopting next-generation technologies will provide a good base for our new products to be customer-centric and enjoy market acceptance.

“Additionally, we aim to build new business segments that will generate additional revenue streams and profit centres by leveraging our supply chain competencies and extensive infrastructure to create a more resilient platform that will drive sustainable growth.”

Teong said the growth initiatives would also be complemented by the strategic investments into strengthening the core business and expansion of GDEX’s business and investments portfolio.

In retrospect, Teong said the events unfolding over the last two years were “once-in-a-lifetime occurrences.”

“We were never prepared for a contagious disease of such magnitude. Nevertheless, the GDEX team was agile in managing the downsides arising from the Covid-19 pandemic. As global logistics were among the handful of industries whose operations were deemed essential services, the domestic industry saw many entrants, given the attractive business propositions and low barriers to entry.”

Teong said this made the already-crowded market even more so, with intense price competition and at times to the detriment of quality service.

“Courier companies, particularly domestic players, face an existential threat due to increased operating costs, such as higher expenditure for enhanced safety measures and additional compliance and regulation costs, on top of more stringent risk mitigation plans for business continuity.”

Teong said GDEX would leverage its specialist teams internally to drive collaboration across the group’s regional platform.

“This will involve creating new logistics routes and securing clientele for importation services,” he said.