Image credit: Oriental Daily
KUALA LUMPUR: Malaysia has what it takes to thrive in a volatile global landscape by capitalising on shifting trade flows and supply chain realignments, said DHL Express Malaysia & Brunei.
Speaking at the Invest Asean-Malaysia Conference 2025, managing director Julian Neo said multinational corporations (MNCs) are quick to adapt to geopolitical disruptions, and Malaysia is increasingly benefiting from these shifts.
"MNCs are agile. When the United States announced new tariffs, one company moved its production from Mexico to Penang within a week," he said. "That speaks volumes about Malaysia's appeal as a reliable and responsive alternative."
Neo said the "China Plus X" strategy, where companies diversify production across Asean, is gaining traction, with Malaysia emerging as a major beneficiary.
"This shift is fuelling both domestic and foreign direct investments, which are reshaping our economic landscape," he added.
Neo noted that 60 per cent of DHL's revenue in Malaysia comes from MNCs, with the remaining 40 per cent driven by small and medium-sized enterprises (SMEs), reflecting a balanced and resilient economy.
He emphasised the urgent need for supply chain diversification, citing trends such as near-shoring, re-shoring and friend-shoring.
"To stay competitive, we must build resilient supply chains. Malaysia has a critical role to play, and DHL is supporting that with continued investments in artificial intelligence and automation," he said.
Neo said technologies adopted during the Covid-19 crisis have helped streamline operations and positioned Malaysia as a key logistics hub in global trade networks.
He also highlighted Malaysia's growing ties with emerging markets such as Mexico, Romania and the United Arab Emirates, calling them "important partners for the next wave of trade expansion."
"To fully realise the benefits, we must pursue new free trade agreements and deepen engagement with these markets," he said.
While MNCs are actively repositioning themselves, Neo voiced concern over local SMEs, many of whom remain hesitant.
"Some SMEs are still taking a 'wait and see' approach. But now is the time to act. Use available data to identify trends, work with government agencies, and diversify to reduce over-reliance," he said.
Despite the global uncertainties, Neo struck an optimistic tone. Citing DHL's Trade Atlas, he projected global trade to grow by 3.1 per cent between 2024 and 2029.
"Even the US-China tensions, which only account for 2.6 per cent of global trade, are not enough to derail momentum," he said. "Global trade is too big to fail and Malaysia has all the right ingredients to succeed within this resilient ecosystem."
Source: https://www.nst.com.my/business/corporate/2025/07/1238398/malaysia-gains-edge-trade-diversifies