PETALING JAYA: Tiong Nam Logistics Holdings Bhd
believes the shift towards enhanced supply chain resilience and optimised inventory management will increasingly prompt outsourcing to specialist logistics providers.
This, chairman Datuk Fu Ah Kiow said, is a trend Tiong Nam is uniquely positioned to leverage.
“Our trajectory for our upcoming financial year focuses on capitalising on these opportunities. We will expand our integrated logistics and warehousing footprint through targeted investments, increasing capacity and market reach to address escalating demand,” he said in the company’s annual report.
Concurrently, Fu said Tiong Nam will strengthen partnerships and expand its client portfolio by consistently delivering tailored and high-calibre logistics solutions.
“Furthermore, we continue to enhance operational efficiency and optimise routes for superior service delivery, advancements that are crucial for maintaining our competitive edge amidst increasing intricacy of global supply chains.”
Looking ahead, Fu said the economic trajectory for its financial year ending March31, 2026 (FY26) is viewed with cautious optimism.
“While global trade stabilisation is anticipated, persistent external headwinds stemming from trade tensions and geopolitical uncertainties remain pertinent.
“Domestically, Malaysia’s economic growth is projected to be stable, underpinned by sustained consumption and investments.”
The firm domestic outlook, alongside the Malaysian and broader South-East Asian region’s potential to benefit from global trade dynamics, strategically positions Tiong Nam, Fu said.
“As more multinational corporations shift their supply chains and sourcing activities toward Asean to mitigate tariff-related risks, regional trade is poised to increase.”
With demand for integrated logistics solutions continuing to rise, Fu said the company will be expanding its warehousing footprint to capitalise on growth opportunities.
As of March 31, 2025, construction is underway for three new warehouses in Johor and Kedah, adding 207,244 sq ft to the company’s capacity, with completion expected in FY26.
“Additionally, six more new warehouses are planned for development in strategic locations, contributing 1.28 million square feet of space, targeted for completion in FY27 and FY28.”
Fu said the expansion will enhance the group’s operational scale and enable it to better serve existing and new clientele.
For its first quarter ended June 30, 2025 (1Q26), Tiong Nam’s net profit rose to RM3.98mil from RM3.52mil in the previous corresponding period, while revenue grew to RM236.23mil from RM200.06mil a year earlier.
In a filing with Bursa Malaysia on its 1Q26 financial results, the company said it anticipates a positive performance in its integrated logistics and warehousing services segment in FY26, driven by Malaysia’s resilient economic growth and increased business from existing and new domestic and multinational clients.
“The proposed development of a 300-acre high-tech logistics park in Johor via a joint venture with JLand Group presents a key opportunity for long-term growth, as the Johor-Singapore Special Economic Zone is set to attract significant investment.
“The group’s property development segment is also anticipates better performance from its ongoing residential development project in Johor, which will help mitigate potential weakness in the relatively smaller dormitory segment.”
