Chairman’s Statement

DEAR ESTEEMED SHAREHOLDERS,

Amidst global economic turbulence and geopolitical uncertainties, the Malaysian economy demonstrated resilience, achieving a growth rate of 3.7% in 2023, fueled by robust domestic demand and sustained improvements in employment and wages.

The Group’s performance in the financial year ended 31 December 2023 continued to face headwinds due to various factors, including changing consumer preferences and behaviours, as consumers returned to physical retail activities, resulting in declining online business transactions. Consequently, demand for logistics and warehousing services, particularly e-commerce orders, was impacted.

The Malaysian courier industry faced challenges from unfair competition by foreign players employing dumping tactics to lower prices — something the regulatory authorities need to manage to ensure a fair playing field. We are hopeful and maintain a positive outlook for an eventual resolution to this issue as the Malaysian Communications and Multimedia Commission actively explores measures to regulate courier base costs to ensure an even and fair operating environment for industry players. We are hopeful that the relevant authorities will formulate a national blueprint for the courier and logistics industry in Malaysia. Given that this industry forms a vital structure and an integral component of an open economy such as Malaysia, a national blueprint would go a long way to energise and support domestic courier and logistics companies to become regional champions, thus creating employment, good paying jobs, and wealth for the industry.

The courier industry continues to face higher labour and operational expenses, compounded by supply chain disruptions due to shipping delays triggered by events at the Red Sea. These challenges had significantly impacted our operational efficiency and financial performance, necessitating innovative agility to navigate the complexities of the operating environment.

Despite the obstacles encountered during the year, the Group remains unwavering in our commitment to achieving long-term growth and profits. Equipped and strengthened with our transformative GDEX 2.0 strategy and a robust business network spanning four major Southeast Asian markets, we are poised to overcome current and future challenges, to capitalise on business opportunities.

As we drive GDEX towards sustainable growth and profitability, we will harness our assets, technological prowess, and cross-border connectivity towards realising our full business potential. To achieve this, we cultivate an innovation-centric culture among our people and emphasise cross-collaboration across all business units to foster synergy and enhance performance.

The Group is committed to continuing an innovative business model that improves our existing strengths in express delivery and logistics services. Through a regional platform-based ecosystem, we will realise the growth potential and sustainability of businesses through international expansion, operational efficiency, and supply chain management. This transformative journey will be progressively realised through technology-driven platforms and solutions, as part of the GDEX 2.0 strategy.

Leveraging our regional presence in Southeast Asia; spanning Malaysia, Indonesia, Vietnam, and Singapore, we facilitate seamless market connectivity for businesses to drive accelerated growth and resilience. Our strategic footprint in these countries positions us as a crucial supply chain bridge, enabling us to connect various regional stakeholders and capitalise on emerging opportunities effectively.

Additionally, GDEX is accelerating the talent enhancement of our people as we adapt to technological advancements within the framework of Industrial Revolution 4.0 (“IR 4.0”). Our modern GDEX Auto Hub in Petaling Jaya is a tangible representation of our commitment to IR 4.0 and the future-proofing of our operational infrastructure.

In 2024, GDEX is poised for growth, enabled by our portfolio of technology subsidiaries that enhance our capabilities and expedite our transformation. We are fully equipped to offer businesses a highly robust suite of integrated supply chain solutions, including logistics, e-commerce, and payment enablement, as well as cybersecurity. GDEX remains committed to cultivating and expanding our tech capabilities through more significant partnerships with leading industry players, ensuring that we meet the evolving needs of businesses in the digital era.

Despite prevailing global economic uncertainties driven by geopolitical tensions and soaring inflation rates, a positive economic trajectory is anticipated for Malaysia and Southeast Asia. This optimism is underpinned by sustained growth in domestic demand and substantial foreign direct investment inflows into the region.

This favourable economic outlook augurs well for GDEX’s operations, including our Vietnamese subsidiary, Noi Bai Express and Trading Joint Stock Company (“NETCO”), and Indonesian associate company, PT Satria Antaran Prima TBK (“SAPX”). Furthermore, the anticipated growth in domestic demand is poised to fuel increased demand for express delivery and warehousing services, presenting greater opportunities for GDEX to thrive.

GDEX was recognised with the “Best in Future of Trust” award at the 7th IDC Future Enterprise Awards in Singapore 2023. GDEX’s implementation of AI-driven, cutting-edge cybersecurity solutions has bolstered the group’s network defences, establishing a new benchmark in trust and reliability.

On behalf of the Board and senior management of GDEX, I would like to convey our appreciation to all frontliners, affectionately known as “Abang-adik GDEX”, the backbone of the Group, who tirelessly work day and night to meet customers’ needs. I would also like to thank the GDEX management for their strategic leadership in navigating this challenging environment — our appreciation also goes to our shareholders and business partners for their support and commitment to GDEX.

I would like to thank Mr Hiroshi Etani for his contribution throughout the duration of his tenure on the Board. Mr Etani resigned from his position as Non-Independent Non-Executive Director on 1 February 2024, following the reorganisation of Yamato Group. At the same time, I have the pleasure of welcoming Mr Yuji Nashimoto, who was appointed as Non-Independent Non-Executive Director on 1 February 2024.

On behalf of the Board, I would also like to place on record our appreciation to Mr Lee Kah Hin, who has resigned from the Board on 25 February 2024, for his contributions in the past as Executive Director.

Tan Sri Muhammad bin Ibrahim
Chairman
Annual Report 2023