Xin Hwa expects strong warehousing demand, recovery in logistic services - MIDA | Malaysian Investment Development Authority
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Xin Hwa expects strong warehousing demand, recovery in logistic services

Xin Hwa expects strong warehousing demand, recovery in logistic services

30 Sep 2021

Xin Hwa Holdings Bhd, an integrated logistics services provider, expects a positive outlook of the industry moving forward on the back of strong demand for warehousing space and recovery of the logistics segment locally and internationally.

In a statement here today, managing director Ng Aik Chuan said the company is believed to be in a well-position to capitalise on this positive outlook.

He said the company’s new e-fulfilment centre in Shah Alam that targeted to commence operations by next month would add  another approximately  27,870.91 square metres (sqm) or 45.8 per cent to its existing warehouse capacity, lifting the company’s total available warehousing space to approximately 92,903.04 sqm.

Ng said the timing was just opportune as the company could capture the robust demand for storage as its existing warehouse is operating at almost full capacity due to the surge in online shopping, stemming from the COVID-19 pandemic and movement restrictions that have escalated the need for warehousing space.

He said more noticeably, the prevalent shipping container crunch issue has caused a slowdown in the movement of cargoes, resulting in goods having to be kept longer in warehouses, thereby exacerbating the shortage of warehousing space.

“In fact, multiple potential customers have already approached us to discuss about leasing space at our new fulfilment centre. Hence, we expect the utilisation rate of our warehouses pick up strongly in the next 12 months.

“Meanwhile, on our land transportation services segment, healthy signs of gradual recovery have been apparent due to measured resumption of economic activities on the local front,” he said.

According to the Ministry of Finance, the gross domestic product (GDP) of transportation and storage services is projected to expand 7.5 per cent this year compared to the prior year.

Additionally, Ng said there are ample opportunities to capitalise on for the company as the government is expected to roll out new mega-infrastructure and transportrelated projects to stimulate the economy such as the Klang Valley Mass Rapid Transit and continuation of other mega projects including East Coast Rail Link, among others.

He added that these factors augured well for the prospect of the land transportation services segment of the company moving forward.

Source: Bernama