Federal Express to benefit from Malaysia-US Free Trade Agreement

Federal Express Services (M) Sdn Bhd, a subsidiary of FedEx Corp, says it will gain from the implementation of the US-Malaysia Free Trade Agreement (FTA). Its new managing director for Malaysia and Brunei, K. Don Premaseri, said the FTA was expected to boost the company’s air cargo-handling business. “Definitely there will be a lot of room to expand in Malaysia. “In fact, Malaysia is poised to record higher growth with the implementation of the FTA,” he told a media briefing here today. Premaseri said the USD44 billion (USD1=RM3.65) bilateral trade between the two countries in 2005, as well as the US Trade Department’s forecast that exports to Malaysia would double within five years (with the conclusion of the FTA) would bring significantly positive growth to the company. “Also, based on the fact that 40 percent of the world trade by value are actually moved by aircargo, you can expect what kind of growth that will come about. “The company expects a positive trend in the coming years. “We have already ordered 10 A380 super Airbus aircraft for our global network operations.
The aircraft, which will be delivered between 2009 and 2001, will mostly be based in Asia,” he said. On the company’s operational outlook for Malaysia this year, Premaseri said FedEx would aggressively tap the small and medium enterprises (SMEs) segment. “We want to support them, introduce and assist them with our unparalleled information technologies that will enable them to meet Customs needs (Customs-cleared service) worldwide on our planes effectively,” he said. He said FedEx would be opening new stations to cater to the increase in demand. “To date, the company is operating 10 authorised ship centres and eight express centres in Malaysia, and the country’s two international gateways in KL International Airport in Sepang and the Penang International Airport in Bayan Lepas,” he said. For the financial year ended May 31, 2006 FedEx Corp revenue rose 10 percent to USD32.3 billion. Operating income for the preriod under reviewed rose to USD3.01 billion, up from USD2.47 billion a year earlier.