DHL projects double-digit revenue growth in FY07

DHL Express has projected a double-digit revenue growth for 2006 and 2007 for its Malaysian operations, as the country continues to be one of its key markets in the Asia Pacific region, its country manager for Malaysia Sam Leong said.

He based this on DHL’s view of Malaysia being able to continue to attract investments that would benefit the company.

“(Revenue) Growth is extremely healthy. We are targeting double digit growth this year and next year,” he said at a media luncheon with DHL Express Malaysia senior management in Kuala Lumpur on Sept 5.

To a question that a number of semiconductors companies are downsizing their operations in Malaysia, Leong said the company did not depend on one or two customers.

“Being a global player, we have been able to balance our portfolio of customers in the sense that when one segment of the industry is facing a downturn, another is expanding. Even when they downsize their operations, our services would still be required if we continue to provide them value-added services,” he said.

Leong said DHL Express, which has a 42% market share in the air express business in Malaysia, believes that it can build up its market share in certain segments.

An area, which the company hopes to develop is the retail sector where the company intends to open more of its ServicePoint outlets in the Klang Valley.

DHL recently said it would increase the number of ServicePoint outlets to 11 from the current three over the next three years in key cities in Malaysia, including converting some of the DHL centres at strategic locations.

Such outlets would help strengthen DHL’s existing network and expand its customer base, particularly small and medium-sized enterprises (SMEs).

“Our current retail business is no where near its true potential,” he said.