Group Chief Executive Officer’s Statement

GDEX has demonstrated unwavering adaptability and resilience in the face of challenging business conditions during the financial year ended 31 December 2023 (“FY2023”).

As we embark on a journey towards renewed growth, strategic transformation remains at the forefront of our agenda. GDEX is undergoing a fundamental evolution, transitioning beyond our trusted expertise in express delivery to emerge as a comprehensive integrated supply chain solutions provider, serving a diverse clientele of regional enterprises.

Our strategic initiatives also encompass optimising costs, enhancing operational efficiency, and pioneering unique digital solutions. The theme of our transformative journey, Unleashing Potential: Beyond Limits, underscores the vast untapped capabilities within our organisation. We are committed to fostering a strong innovative culture, empowering our talent through continuous upskilling, and forming strategic partnerships and alliances to capitalise on this potential.

The tangible outcomes of our transformation efforts are evident in the establishment of a robust network of technology-driven subsidiaries. This network enables us to rapidly address the evolving demands of global businesses and positions the Group for sustainable growth. Our unwavering commitment to agility ensures that we can promptly adapt to the dynamic needs of our clients in an ever-changing business landscape.

Express delivery remains the core of GDEX’s operations, facilitated by a formidable network of over 4,340 points across Malaysia. GDEX has become a prominent express delivery brand, enabling last-mile delivery for a wide range of businesses, and playing a vital role in the country’s economy. GDEX’s success can be attributed to its roots in process engineering.

Despite our market-leading capabilities, the performance of our express delivery segment in FY2023 was impacted by predatory pricing from industry participants and inflationary pressures. We continue to collaborate closely with key stakeholders such as the Malaysian Communications and Multimedia Commission and the Malaysia Competition Commission, to mitigate these challenges and cultivate a more conducive operating environment.

Meanwhile, our logistics segment, which provides logistics and warehouse fulfillment services to various high-profile clients, faced challenges of increased warehouse maintenance costs and slower client demand amid weaker business sentiment.

Despite these challenges, we continue to enhance our operations through technological advancements, positioning us for long term sustainability. The inauguration of our state-of-the-art GDEX Auto Hub in Petaling Jaya in May 2023 further fortified our express delivery segment. To decrease turnaround times and lower the possibility of shipment damage, the sorting facility has tripled our sorting capacity to 350,000 shipments per day, and feature intelligent sorting equipment with 99.99% sorting accuracy.

In line with our digital transformation initiatives, we have designated information technology (“IT”) as our fourth business segment in FY2023. Through strategic initiatives under GDEX 2.0, our investments in innovative IT companies enable us to build a synergistic supply chain ecosystem, leveraging technology to enhance operational efficiency and deliver value-added solutions to businesses.

Despite initial investments and associated operating costs, our IT segment is positioned for long-term growth, driven by increasing demand for technology-based solutions. Our expanding portfolio of services include cloud-based smart retail solutions, cybersecurity solutions, and bespoke e-commerce development – empowering businesses to thrive in the digital age.

Leveraging our track record of offering speed and reliability to businesses through tech-enabled last-mile delivery solutions, GDEX nurtures our IT investee companies to achieve greater operational productivity, resilience, and reduced redundancy on the back of our vast experience across multiple industries.

Our investee companies are making significant strides forward. Web Bytes Sdn Bhd (“Web Bytes”), a software development company dedicated to cloud-based smart retail solutions, successfully inaugurated its first tech experiential retail outlet, Wonders Café, providing companies with a firsthand immersive experience of the integrated solutions. Concurrently, Sweetmag Solutions (M) Sdn Bhd (“Sweetmag”), our e-commerce platform enabler, has entered into a collaboration with Shopify Plus to enhance cross-border e-commerce opportunities for our clients.

Collectively, our investee companies will enhance our overall offerings and enrich the GDEX 2.0 ecosystem. These transformative enhancements increase the visibility for GDEX as the preferred partner for integrated supply chain solutions, reinforcing our position as a leader in driving innovation and efficiency in the industry.

Looking ahead, GDEX is committed to equipping our workforce with the necessary skills and expertise to propel the Group into a new chapter of growth. We continue to invest in training programmes and establish partnerships with educational institutions to ensure that our employees are equipped with the latest skills and industry knowledge.

GDEX was one of the first industry players to establish a learning academy to train school leavers in Technical and Vocational Education and Training (“TVET”) programmes. The Group is working on providing more training and learning opportunities going forward by expanding the selection of courses and collaborating with tertiary institutions. In FY2023, we trained 5,584 employees and saw 91 employees completing their Level 3 Malaysian Skills Certificate (Sijil Kemahiran Malaysia), a certificate awarded by the Skills Development Department (JPK) of the Ministry of Human Resources.

In FY2023, the Group organised a Partner Appreciation Night 2023 to honour our associates, partners, and supporters. We thanked them for their dedication, commitment, and collaboration, as well as shared about the GDEX ecosystem of partners. Going forward, we anticipate even greater accomplishments with our valued partners.

Furthermore, in our commitment to environmental stewardship, we prioritise initiatives aimed at reducing our carbon footprint and promoting sustainable business practices. Initiatives such as the utilisation of solar energy and deployment of sustainable packaging represent our dedication to sustainability as we continuously seek new ways to improve.

Lastly, I would like to express my sincere gratitude to all GDEX employees for their commitment and diligent work. I extend my appreciation to our esteemed shareholders and business partners for their steadfast support. With our focus on innovation, operational excellence, and strategic partnerships, I am confident that GDEX’s better days are on the horizon.

Teong Teck Lean
Managing Director and Group Chief Executive Officer
Annual Report 2023