In addition to build a 220,000-square-meter facility in Malaysia, the company aims to connect Thailand, Vietnam, Singapore and Malaysia in its logistics network, better enabling cross-border express delivery among these countries next 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 CEO of the Hangzhou, Zhejiang province-based company.
Fueled by growing trade volume between China and the Association of Southeast Asian Nations, an ongoing consumption boom in ASEAN member economies and flourishing cross-border e-commerce business in the Asia-Pacific region, the New York-listed Chinese company has already built service networks and overseas warehouses in several Southeast Asian countries.
After entering Thailand, its first market in Southeast Asia, five years ago, BEST expanded its cross-border business by establishing new international routes between China and Southeast Asian countries. In the first half of 2023, it connected China with the Philippines and Indonesia with its services.
Unlike other logistics service providers, BEST did not penetrate the market by first establishing transport routes. Instead, it invested in building self-owned express networks and distribution centers in core logistics hub cities in Thailand, Vietnam, Malaysia and Singapore.
"Equipped with automated facilities, the distribution centers are able to ensure reliability, scalability and potential for reduced marginal costs of our service networks in Southeast Asia," Chou said.
Highlighting that cross-border e-commerce plays a prominent role in trade between China and ASEAN, he said that the Belt and Road Initiative ("BRI") has turned regional connectivity into a reality, providing assurance for achieving sustainable economic development in the region.
China and other participating countries have engaged in foreign trade valued at $19.1 trillion since the inception of the BRI, with two-way investments surpassing $380 billion, data from the Ministry of Commerce showed.
Chou said the company will offer more services encompassing small packages, express delivery and warehousing between China and markets in Southeast Asia, catering to the outbound needs of domestic manufacturing and cross-border e-commerce businesses.
Meanwhile, Mr Lu Miao, General Manager of BEST Inc Malaysia emphasized the company's commitment to excellence, saying," the newly inaugurated sorting center symbolizes BEST Inc's unwavering commitment to a relentless pursuit of excellence, pushing the boundaries of logistics technology and infrastructure."
Lu Miao believed this hub will play a pivotal role in optimizing efficiency, speed, and reliability in the movement of parcels and goods, supporting businesses and communities across South East Asia.
BEST Inc's gross profit touched 51.8 million yuan ( RM33.62 million) in the third quarter of this year. Revenue generated by its international arm BEST Global grew by 30.2 percent year-on-year, according to its financial report.
As at end of September, the Chinese company had 33 self-operated express sorting centers, over 1,200 service points and business operations spanning six countries in Southeast Asia, with 47,000 sq m of warehousing area.
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BEST Inc
BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China and Southeast Asia. Through its proprietary technology platform and extensive networks, BEST offers a comprehensive set of logistics and value-added services, including freight delivery, supply chain management and global logistics services. BEST's mission is to empower business and enrich life by leveraging technology and business model innovation to create a smarter, more efficient supply chain.
BEST Inc started its business mapping for Southeast Asia market expansion in 2018. The group completed its express delivery network coverage in Thailand, Vietnam, Malaysia, and Singapore in 2020, and opened up the cross-border logistics network between China and Southeast Asia.
Started with express delivery network in Southeast Asia market, BEST Inc has gradually built-up its global warehouses, cross-border networks, and cargo networks.
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