Supply chain and logistics services provider BEST Inc said that its largest sorting center in Southeast Asia, which is located in Selangor, the most developed state in Malaysia is slated to open in 2024.
In addition to build a 220,000-square-meter facility in Malaysia, the company aims to connect Thailand, Vietnam, Singapore and Malaysia in its logistics network, better enabling cross-border express delivery among these countries next year.
“With many Chinese companies deploying resources and investing in manufacturing facilities in Southeast Asia to support the tangible growth of the Belt and Road Initiative, they have asked us to provide more customized services to ensure the operations of their supply chains in the region,” said Johnny Chou, chairman and CEO of the Hangzhou, Zhejiang province-based company.
Fueled by growing trade volume between China and the Association of Southeast Asian Nations, an ongoing consumption boom in ASEAN member economies and flourishing cross-border e-commerce business in the Asia-Pacific region, the New York-listed Chinese company has already built service networks and overseas warehouses in several Southeast Asian countries.
After entering Thailand, its first market in Southeast Asia, five years ago, BEST expanded its cross-border business by establishing new international routes between China and Southeast Asian countries. In the first half of 2023, it connected China with the Philippines and Indonesia with its services.
Unlike other logistics service providers, BEST did not penetrate the market by first establishing transport routes. Instead, it invested in building self-owned express networks and distribution centers in core logistics hub cities in Thailand, Vietnam, Malaysia and Singapore.
“Equipped with automated facilities, the distribution centers are able to ensure reliability, scalability and potential for reduced marginal costs of our service networks in Southeast Asia,” Chou said.
Highlighting that cross-border e-commerce plays a prominent role in trade between China and ASEAN, he said that the Belt and Road Initiative (BRI) has turned regional connectivity into a reality, providing assurance for achieving sustainable economic development in the region.
-NIAGATIMES
