What is the current situation of logistics in Southeast Asia? The small package line opens a new era

Singapore-a central location brings unlimited business opportunities

Singapore, with its unique central location advantage in the Asian region, has become the hub of Asian e-commerce. So, how big are the business opportunities here? May wish to follow the author to open the map together, you can see that Singapore is surrounded by many countries, and the countries around Singapore are inhabited by more than 600 million people, of which there are 2.2 billion people within a 5-hour flight distance, which can be described as unlimited business opportunities.

German underwear brand Triumph wanted to sell underwear on Malaysia's e-commerce network and found Singapore's National Post Company. For this purpose, Singapore Post has specially set up a sales website and developed a marketing strategy. Of course, it also sends express parcels to Triumph. Singapore Post has a history of more than 150 years and is responsible for the postal services of Singapore. New Post has the ability to integrate and provide complete e-commerce logistics solutions, including cargo transportation, warehousing, delivery and return, as well as customer-oriented Internet solutions. Currently, Singapore Post's e-commerce and related businesses account for 26% of its total revenue. In addition to routine postal services, Singapore Post also provides diversified services for enterprises, including website development, online marketing, customer service, and express parcels. It follows Amazon's model and establishes a 24-hour warehousing network in 12 countries, reserves inventories for companies, and provides international logistics services.

In May 2014, Alibaba Group invested S$312.5 million (approximately US$249 million) to subscribe for 190 million new shares and 30 million treasury shares of Singapore Post. After the investment is completed, Alibaba Group will acquire a 10.35 percent stake in Singapore Post. The two parties plan to establish a joint venture to focus on the logistics business of e-commerce in Southeast Asia. In order to expand e-commerce, Singapore Post has upgraded its core express services, strengthened its warehousing network and logistics center, and handled freight and customs procedures. As a result, goods can be delivered faster in this area. Alibaba said that the cooperation with Singapore Post is an important step in Alibaba's internationalization and the expansion of its e-commerce ecosystem to the world. AliExpress, Taobao, Tmall overseas business, and Tmall Global all use cross-border connections in the Ali ecosystem as a link to match consumers and suppliers on a global scale. And Singapore Post to jointly build a "national

After the “international e-commerce logistics platform”, Alibaba’s consumers and merchants will gain core supply chain competitiveness such as global transshipment, rapid customs clearance, warehousing services, and last-mile delivery. As a result, the Alibaba ecosystem can not only benefit Chinese online shoppers , Will also serve global consumers.

The Chinese smartphone manufacturer Xiaomi has also set up a regional headquarters in Singapore as a springboard into Malaysia, the Philippines and Indonesia. Next, it targets Vietnam and Thailand. It cooperates with Singapore Post to support the logistics business of e-commerce, which accounts for 80% of Xiaomi's revenue in Southeast Asia.

Indonesia-the ever-increasing bonded logistics center

PT. Yusen Logistics Indonesia launched its own air freight import service operation at Halim Perdanakusuma International Airport in Jakarta. The newly launched operations allow the Indonesian Express Shipping Logistics Company to provide point-to-point import services at the airport, from the arrival of the goods at the airport to the delivery to the customer, including improved identification and transportation management control, such as freight, customs clearance and vehicle loading in the airport’s bonded area status.

And this advanced service is mainly used to improve the solution of urgent delivery needs. Halim Airport is located 15 kilometers southeast of the center of Jakarta, with convenient transportation, close to the East Jakarta Industrial Zone, and is a base for many Japanese companies. Customers in the industrial zone will now significantly shorten the delivery time. Road transportation from Halim Airport will take between 1.5 to 4.5 hours depending on the traffic jam, which is still less than the transportation from Jakarta to the main airport Soekarno-Hatta International Airport. time.

Yufu Express Logistics is committed to the continuous development of its services. With its unique Japanese tradition and philosophy of continuous improvement, it looks for various ways to improve its operational efficiency and provide the best freight solutions to customers.

Indonesia is eagerly looking to replace its neighboring countries as the main logistics hub in Southeast Asia, so it established the first bonded logistics center (PLB) in history, which will ease the flow of basic materials in and out of the country.

As many as 11 bonded logistics centers were opened at the same time. Indonesia, as the largest economy in the region, has the potential to replace Singapore and Malaysia as the logistics hubs of Southeast Asia. The 11 centers are located in Jakarta (Cakung, Sunter), Banten (Merak), Banten (Merak), East Kalimantan (Balikpapan), West Java (Cibitung, Karawang, Cikarang and Subang) Subang) and Bali (Benoa and Denpasar). It is operated by different companies, including Indonesia's Toyota Motor Manufacturing Company, integrated service provider Dahana Company, and oil and gas service provider Petrosea Company. The newly established center will serve as a warehouse for imported goods such as auto parts, heavy equipment, oil and gas equipment.

According to Indonesia’s 2015 Finance Minister Regulation (PMK), goods can be stored in the center for up to three years, while temporary import-related tariff exemptions are granted during this period. The purpose is to reduce the number of industrial zones adjacent to them. Logistics costs. These centers are also expected to reduce the time that goods stay in the port, and ultimately hope to improve the commercial competitiveness of Southeast Asian countries. Currently, Indonesia ranks 109th on the World Bank’s list of corporate management difficulties, Singapore continues to rank No. 1, and Malaysia ranks No. 18. These two neighboring countries performed well. According to data from the state-owned port operator Pelindo II, the length of stay in Hong Kong is 1.5 days in Singapore and 3 days in Malaysia. In Indonesia, the average suspension time is 4.3 days.

Therefore, the Indonesian government plans to set up 50 bonded logistics centers throughout the Indonesian archipelago in 2017. In the future, it hopes to become a logistics hub in Southeast Asia.

Philippines-Multi-party efforts to create opportunities

In a "2015 Philippines Transport & Logistics 2015" report, it was pointed out that the Philippines may become the main hub of global logistics service providers, and the market size is expected to reach the potential of 70 billion Philippine dollars in 2020, but the premise is The Philippines must improve its capabilities in this area because it currently lags behind other countries in Southeast Asia in terms of logistics.

The Philippines currently needs to encourage domestic investment in public construction and attract manufacturers to invest. If the Philippines can overcome infrastructure difficulties, such as the current port and airport, especially the congestion of the Luzon highway, then it will be attractive for manufacturers to move here and have the opportunity to become a major growth area.

The strong economic growth of the Philippines comes from the large amounts of foreign exchange that Filipinos who live and work abroad repatriate to their home countries. Driven by the growing middle class and overseas remittances, it has a fast-growing economy and a prosperous consumer market. The ASEAN Economic Community also provides a huge opportunity for the gradual integration of the Philippines and other member states to promote regional trade. However, the existing bureaucracy, corruption, lack of transparent rules and business norms, and sometimes "dark" legal systems are obstacles to successful business development in the Philippines. If the process can be simplified, and the current logistics barriers can be eliminated, so that enterprises can operate more smoothly in the Philippines, it may be the main driving force of economic growth, trade and logistics demand.

It can be seen that although the logistics industry in Southeast Asia, including Singapore, Indonesia, the Philippines and other countries, are making their own efforts, hoping to become a regional logistics hub, develop bonded taxes and get a share of cross-border e-commerce, but due to their own There are various problems, and it is still unknown who will die in the end. In this era of competition among heroes, as witnesses of the times, we are all concerned.