Integrated logistics services provider, Xin Hwa Holdings Berhad expects the current logistics and warehousing boom to continue well into 2022.
This comes on the back of the company opening its new e-fullfillment centre, a mega structure along Elite highway with 300,000 sq feet in floor space. Commenting on the outlook, Managing Director Ng Aik Chuan said, “We target to commence operations of our new Shah Alam E-fulfillment centre by end of this month. Timing of this new capacity is just opportune to seize the booming demand for storage space. It will add another 300,000 square feet to our existing warehouse capacity 672,000 SF.
According to Chuan the response has been encouraging and the group has already secured a new tenant, which is a large well-known courier services company to take up 70,000 sf.
Located by the side of the ELITE Highway, the E-fulfilment centre has 7-storey office and 3-storey warehouse. It is a purpose-built building suitable for not only usual storage of cargoes but particularly well-suited for the handling of e-commerce logistics.
Demand for warehousing space is undergoing a strong uptrend with e-commerce driving the sector, Xin Hwa has been benefitting from the pandemic and has expanded its E-Fulfilment centre by two more warehouses through lease
All in all, the 3 new warehouses in Shah Alam, Klang and Kuantan will boost Xin Hwa’s warehousing space by 66.1% or 444,000 sf. to 1.12 million sf. from the existing 672,000 sf. Its existing warehouses are all operating at almost full capacity too.
The Ministry of Finance projects the GDP of transportation and storage to expand 7.5% in 2021 as compared to prior year. Adding to that is the recent announcement of 12th Malaysia Plan where the Government has allocated RM400 billion for development expenditure.
Under its logistics division, the group has project cargo services as well, which refers to the transportation of oversized, heavy and complex structures that requires detailed pre-planning and highly specialized vehicles and skilled manpower. As such, it believes the implementation of mega-infrastructure projects under the 12th Malaysia Plan will present ample opportunities as there will be high demand for project cargo services.