Many factories are moving their production line out of mainland China and into other countries such as Malaysia because of the recently imposed tariffs by the United States. Therefore logistics companies that are in Malaysia are benefiting from these changes. Kerry Logistics Network which is a logistics company registered in Hong Kong and owned by the wealthiest man in Malaysia is one of those firms positively impacted by the China-US trade war.
William Ma Wing-kai, the managing director of the logistics company, said that their clients have moved a portion of their production lines from China to other nations within the Asia region beginning March of 2018. These companies are moving to destinations where they have an existing manufacturing facility.
Because of the current trade war between China and the United States, the present clients of Kerry are already moving their production to other countries that are also under the Asean or Association of Southeast Asian Nations. Some of them chose to export finished goods instead in order to avoid paying the tariffs which has been recently raised. Ma added that whatever option they chose from the two, the shipping volumes will be higher.
Ma explained to South China Morning Post that what the companies are doing is shifting their international productions bases. Kerry is currently one of the largest companies that handle shipping and logistics in the whole Asia region. The firm was founded by Kuok Group in 1982 which is the flagship company under Kuok, the wealthiest man of Malaysia according to Forbes magazine, with an estimated worth of $14.6 billion.
It has been five years since the company was listed in Hong Kong and as of writing it is already operating around 260 cities all over the Asia-Pacific region. It reaches over 50 countries all over the globe from Europe, Middle East, Asia and China.
Ma said that the shifting of the production facilities will have a positive impact on the logistics company and the trade in countries such as Laos, Malaysia, Myanmar and Vietnam starting this year will be boosted. The trend is expected to remain strong for coming years.