Malaysia, a preferred destination for FDI in the region
Julian Neo, Managing Director of DHL Express Malaysia and Brunei, highlights Malaysia's continued appeal for foreign direct investment (FDI), with multinational corporations increasingly eyeing the country for strategic diversification. He emphasizes omni-sourcing as crucial amidst recent geopolitical shifts, noting a focus on supply chain resiliency. Malaysia's strengths include access to key Asian markets, robust consumer demand, supportive institutions, infrastructure, legal framework, skilled talent, and favorable trade agreements. Malaysia ranks 26th globally in trade and FDI flows according to DHL Group's Global Connectedness Report. Regarding the 6% service tax on logistics services implemented in March 2024, Neo indicates it primarily affects domestic shipments, with international ones, DHL Express's main focus, unaffected. He assures ongoing dialogue with authorities and customers to ensure a smooth transition.