by AFIQ AZIZ / Pic credit: hlineclearexpress.com
MMAG Holdings Bhd’s wholly owned subsidiary, Line Clear Express & Logistics Sdn Bhd, will collaborate with SF Global Express (M) Sdn Bhd to enhance its logistics connectivity to and from China, as well as elsewhere.
In a bursa filing yesterday, MMAG said the three-year agreement (ending December 2023) will see SF Global Express entrust Line Clear to sell and promote SF Global Express’ services and products to customers in the former territory. MMAG said the strategic cooperation is expected to create synergies by leveraging the strength of SF International assets and experiences.
In a separate statement, MMAG ED Jeff Chong said through the agreement, both parties will work collaboratively, providing customers with SF International’s comprehensive international shipment solutions to and from China, along with the rest of the globe.
He said this idea leverages Line Clear’s extensive network, fleet of vehicles, people and the local know-hows, ensuring shipments are delivered to customers’ doorsteps efficiently.
“Line Clear’s pit stop (hub, depot) and stations (branches) will be the sales channel for SF International services, acting as both a pickup and send off point for documents and parcels to local and international destinations such as the US, Europe, Australia, etc.
“We view Line Clear and SF International forming a league agreement as an important milestone for Line Clear in particular, allowing the company to further expand the horizons of international shipments between Malaysia and China,” Chong said.
He said Line Clear, on the other hand, will leverage SF International’s experience, technology platforms and aviation networks within China, allowing for a competitive edge in the industry by satisfying the current customers’ heavy demands.
Citing the Malaysian Communications and Multimedia Commission report, Chong said international shipment is just a fraction of the country’s total domestic shipment, and thus MMAG is optimistic the line of business is still at the infancy stage.
“According to the report by Research and Markets, the global logistics market revenue is expected to grow from US$9.1 billion (RM36.85 billion) to a massive estimate of US$75 billion by 2030,” he added.
MMAG’s shares were up two sen to 50.5 sen at market close yesterday.