From left: DHL Supply Chain Malaysia managing director Mario Lorenz, DHL Global Forwarding Malaysia, Singapore, and Brunei managing director Christopher Lim, DHL Express Malaysia and Brunei managing director Julian Neo and DHL eCommerce Malaysia managing director Saurabh Kumar at the DHL Strategy 2030 Media Briefing session.
SHAH ALAM: Logistics outfit DHL is optimistic about solidifying its growth in Malaysia despite the United States announcing a 25 per cent reciprocal tariff on Malaysia.
DHL, through its five-year Strategy 2030 roadmap, aims to accelerate sustainable development with an expanded focus on high-value sectors.
DHL Express managing director Julian Neo said the confidence, among other factors, stems from Malaysia’s promising foreign direct investment (FDI), which has shown consistent quarter-on-quarter growth, as well as the momentum generated by the Johor-Singapore Special Economic Zone (JS-SEZ).
"A huge chunk of Strategy 2030 is coming from the Geographic Tailwinds 20 (GT20) programme, which stands for 20 countries that have been identified to have high growth potential. Malaysia is at the right time and right place, so it stands to benefit.
"If you examine the FDI figures from the first quarter last year, you will notice a significant amount, and the government is also implementing various initiatives. For example, public-private partnerships through the Malaysia Investment Development Authority (MIDA) and the Malaysia External Trade Development Corporation (MATRADE)," he said during the DHL Strategy 2030 media briefing here today.
Neo also foresees minimal impact on the company’s operations in Malaysia, citing the DHL Global Connectedness Report 2024, which shows that only 21 per cent of global businesses are engaged in cross-border trade, with just 2.6 per cent utilising the US-China trade lane.
"The exposure to the tariffs is not as significant as we might think. Prime Minister Datuk Seri Anwar Ibrahim is also actively exploring new markets, and businesses in Malaysia should do the same. For example, ASEAN is a large market with a population of nearly 680 million.
"Out of the total 1.2 million small and medium enterprises (SMEs) in Malaysia, only 18 per cent are doing business overseas. We want to help them, not only to export goods to faraway countries but also to first look at neighbouring countries,” he said.
Anwar had reportedly said that the government will continue negotiations with the US following the imposition of the 25 per cent retaliatory tariff on Malaysian exports.
He said that during the negotiations, Malaysia will present its arguments to the US before the tariff rate is finalised in August.
Meanwhile, DHL Supply Chain Malaysia managing director Mario Lorenz said that in recent years, DHL had invested approximately RM900 million through Kuala Lumpur Gateway, which is located at the KLIA Air Cargo Terminal 1, and expanded their warehouse capacity, staff and sustainability activities.
"DHL Express invested RM300 million for Kuala Lumpur Gateway to better connect Malaysia to the world, and another RM655 million is allocated until 2028 (investment by DHL Supply Chain) to improve our infrastructure and business, including our new Penang Logistics Hub 5," he said.
The media briefing was also joined by DHL Global Forwarding Malaysia, Singapore and Brunei managing director Christoper Lim; and DHL eCommerce Malaysia managing director Saurabh Kumar. - Bernama
