PETALING JAYA: Federal Express (FedEx) is sharpening its focus on Malaysia as a key logistics gateway in Southeast Asia, ramping up network capacity, digital capabilities and infrastructure investments to support exporters particularly SMEs as trade with Europe accelerates.
FedEx Southeast Asia vice-president of operations Bianca Wong said the region is at a pivotal point as global supply chains diversify and businesses seek greater resilience beyond traditional manufacturing hubs.
“Southeast Asia has a real opportunity to lead in global trade, but only if logistics networks evolve at the same pace,” she told SunBiz in an interview.
“Our focus is building a network that gives businesses resilience and optionality, not just speed.”
Malaysia, she said, sits at the centre of this shift, with Penang emerging as a critical node for high-tech and semiconductor supply chains as companies rebalance production across the region.
FedEx recently launched a nonstop cargo flight between Guangzhou and Penang, operating five times a week using dedicated B767 freighters. The service allows Penang importers to receive shipments around an hour earlier each day, improving production planning for electronics and time-sensitive manufacturing.
“These are small changes, but they make a big difference to production cycles,” Wong said, adding that the expanded Kuala Lumpur-Guangzhou uplift now provides an additional 2.5 hours of pickup flexibility for Asia-bound exports.
The enhancements come as FedEx expands its Asia Pacific-Europe network. The company has added five weekly flights between its Guangzhou hub and Paris, bringing total Apac-Europe connectivity to 26 weekly flights. This strengthens Malaysia’s access to key European markets at a time when demand is rising sharply.
According to FedEx’s Apac-Europe trade report, 87% of Malaysian SMEs reported growing trade with Europe, while 97% plan to start or expand European trade in the next one to two years.
“Europe is becoming an increasingly important growth pillar for Malaysian SMEs,” Wong said. “Markets like the UK, France, Germany and Italy are seeing strong demand for quality and niche products, but exporters are also facing tighter regulatory and sustainability requirements.”
She noted that the European Union’s planned removal of the de minimis customs duty exemption in early 2026 will fundamentally change cost structures for low-value imports, making compliance, data accuracy and customs expertise more critical.
Beyond air connectivity, FedEx is anchoring its long-term Malaysia strategy through infrastructure investment. The company has signed a memorandum of understanding with the Penang Development Corporation to develop a 100,000-square-foot integrated logistics and air cargo facility at the Penang International Logistics Aeropark (PILA), with an investment of about RM46 million.
The facility will consolidate FedEx’s express and freight operations, featuring advanced sorting systems and automated workflows to streamline import and export processes.
“This isn’t just about building infrastructure,” Wong said. “It’s about creating a launchpad for growth and giving Malaysian SMEs the confidence to scale internationally with reliable capacity, technology and visibility.”
Digital intelligence is another key pillar of FedEx’s regional strategy. Wong said real-time visibility, predictive logistics and smarter customs capabilities are fast becoming the backbone of cross-border trade.
FedEx operates a regional Centre of Excellence for Data Analytics in Singapore, which supports operational optimisation and real-time decision-making across Southeast Asia. AI, automation and advanced analytics are embedded across its regional hubs, including in Guangzhou and Singapore, enabling dynamic route planning and faster response to disruptions.
At the same time, the company continues to invest heavily in its workforce. Wong oversees more than 4,000 employees across Southeast Asia and said digital transformation is designed to amplify, not replace, human capability.
“Operational efficiency and talent development are not competing priorities,” she said. “As technology scales, our people scale with it.”
Sustainability is increasingly shaping logistics decisions, especially for exporters targeting Europe. FedEx is working towards carbon-neutral operations by 2040 through fleet modernisation, sustainable aviation fuel and the electrification of last-mile delivery.
Malaysia is leading this effort, with FedEx deploying its largest electric vehicle fleet in Southeast Asia, 41 electric vans across key cities, cutting an estimated 305 tonnes of tailpipe carbon dioxide emissions annually.
“For Malaysian exporters, greener logistics directly supports EU buyer expectations and regulatory compliance,” Wong said, adding that FedEx’s digital sustainability and customs tools help businesses navigate evolving environmental and trade rules.
With more than 30 years of operations in Malaysia and access to over 220 countries and territories globally, FedEx sees its integrated network, dedicated fleet and digital intelligence as its key competitive edge.
“Our advantage is how these elements work together,” Wong said. “It’s about reach, flexibility and smart tools that make global trade simpler for Malaysian businesses.”
