BEST Inc. to Open Southeast Asia's Largest Sorting Center in Malaysia
China-based supply chain and logistics services provider BEST Inc. has announced the forthcoming opening of Southeast Asia's largest sorting center in Selangor, Malaysia's most developed state, in 2024.
In a statement released last week, BEST revealed plans to construct a 220,000-square-meter facility in Malaysia, with a strategic goal of enhancing logistics connectivity among Thailand, Vietnam, Singapore, and Malaysia within its network. This initiative aims to facilitate smoother cross-border express deliveries among these nations by the following year.
“With many Chinese companies deploying resources and investing in manufacturing facilities in Southeast Asia to support the tangible growth of the Belt and Road Initiative, they have asked us to provide more customized services to ensure the operations of their supply chains in the region,” said Johnny Chou, Chairman and Chief Executive Officer of the Hangzhou, Zhejiang province-based company.
The New York-listed company, responding to growing trade between China and ASEAN, as well as the flourishing cross-border e-commerce sector in the Asia-Pacific region, has already established service networks and overseas warehouses in various Southeast Asian countries. BEST initially entered the Southeast Asian market in Thailand five years ago, expanding its cross-border business through the creation of new international routes connecting China with Southeast Asian nations, such as the Philippines and Indonesia in the first half of 2023.
In contrast to conventional logistics providers, BEST adopted a strategy of investing in self-owned express networks and distribution centers in key logistics hub cities across Thailand, Vietnam, Malaysia, and Singapore. Equipped with automated facilities, these distribution centers aim to ensure reliability, scalability, and potential cost reduction in the service networks across Southeast Asia.
Lu Miao, General Manager of BEST Inc Malaysia, expressed the company's commitment to excellence, noting that the newly inaugurated sorting center symbolizes BEST Inc's unwavering dedication to pushing the boundaries of logistics technology and infrastructure. This center is expected to optimize efficiency, speed, and reliability in parcel and goods movement, supporting businesses and communities across Southeast Asia.
In terms of financial performance, BEST Inc reported a gross profit of 51.8 million yuan ($7.91 million) in the third quarter of the current year, with its international arm BEST Global experiencing a 30.2 percent year-on-year revenue growth. As of the end of September, the company operated 33 self-operated express sorting centers, over 1,200 service points, and business operations spanning six Southeast Asian countries, encompassing 47,000 square meters of warehousing area.