Malaysian firm looks to Dubai amid crisis
Integrated Logistics Bhd, a Malaysian warehousing and supply chain services provider, is focusing on Middle Eastern operations as the economic conditions have created havoc in its traditional home market and in China.
"Honestly, we cannot see any growth at the moment. Our business in China is down by 20-25%. Our business in Malaysia is also down by 30-35%. Our volume is down tremendously," said ILB CEO Tee Tuan Sem.
"Our objective now is to sustain the company," the ILB executive added.
The firm will now concentrate on its Dubai warehouse construction project, where work began in the last quarter of 2008. It is slated for completion in mid-2010 and will start operations in the first quarter of 2011, primarily catering to consumer products. ILB will also diversify into oil and gas, chemical storage and temperature-controlled storage in a bid to beat the downturn.
"I'm very bullish on the demand because the warehouse in Dubai is something new, something the group has not done yet. It is a cold room and this is an automated warehouse," concluded Tee.