Changing Face of Industrial

Transcription

1 Changing Face of Industrial

2 ASEAN Gold Rush Population of 623m USD 65billion in e-commerce expected by 2020 USD2.3bn e-commerce revenue in Malaysia in 2016 USD2.1bn e-commerce revenue in Thailand in 2016 USD1,582 is average spend per shopper in 2016 Next big markets are in Vietnam and Indonesia 30% of all transactions vis social media (i.e- Facebook and Wechat) 12.8% of all ecommerce transactions will be in ASEAN B2C market is estimated to grow at 15% p.a. in ASEAN and reach EUR13bn in B2B market is X times bigger (Forbes) USD192bn - value of the global e-commerce logistics industry including fulfilment

3 #8 # Agility Emerging Markets Logistics Index n = 45 countries IONAL ECONOMIC ARCHITECTURE ONG TRACK RECORD OF REGIONAL COOPERATION The Agility Emerging Markets Logistics Index ranks emerging markets countries for their potential as logistics markets. #29 # Logistics Performance Index (LPI) n = 160 countries The LPI measures the on-the ground efficiency of trade supply chains, or logistics performance. Malaysia leapfrogged its position to the Top 5, signifying its offer of the very best mix of economic robustness, commercial opportunity and access ASEAN to markets. + 3 Myanmar Cambodia Laos ASEAN Indonesia Philippines Thailand China, Rep. of Korea Japan Malaysia Brunei Singapore Vietnam RCEP India AANZFTA Australia New Zealand Russia United States Malaysia is top 5 in Asia and an over-performer amongst the non-high income economies REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP TPP Chile Peru Mexico Canada APEC Hong Kong Taiwan Papua New Guinea Will represent a combined GDP of USD 17 Trillion or 40% of world trade Evaluation Component: - Customs - Infrastructure - International shipments - Logistics competence - Tracking & tracing - Timeliness

4 E-Commerce is growing 25 % in Asia Pacific in 2015 Market research firm emarketer projects e-commerce sales will eclipse $3.5 trillion within the next five years. The fastgrowing Asia-Pacific market is expected to fuel a 25% yearover-year increase in global e-commerce in 2015.

5 The New Industrial Revolution has arrived The new Industrial Revolution will rejuvenate the stagnant industry of industrial estate while attracting investors for its renewed demand due to e-commerce and logistics operation. Abandoned and existing warehouses lie on valuable lands waiting to be resurrected with modern infrastructure. According to Property Data, investors for warehousing and distribution hubs increased 65% globally as cross-border e-commerce took off. Warehouses and distribution centres are transformed into fulfillment centres equipped with the capabilities to drive profitability.

6 Source: Global WebIndex Q Malaysians spend 3 hrs/day on social media, the 6 th highest in the world. 31% of Malaysians bought something online in the past month, the 6th highest in the world. Growing middle class Mobile Penetration rate > 140% 65% of the population is below the age of 40 years Government Regulation: 1. Logistics 2. E-commerce DFZ SEA Statistics (2016) Population: 623m E-c0mmerce CAGR: 15% Market size 2020: EUR13bn

7 Traffic is bad across ASEAN The Nielsen Global Survey of Automotive Demand found car ownership is relatively low across South-East Asia: 47% of Filipino households do not own a car, and the figure is 46% for Indonesian households. Malaysia, however, bucks the trend, with 93% car ownership, placing third in the world. The country also has the highest incidence of multiple car ownership globally with 54% of households having more than one car.

8 Evolving Last Mile Delivery Technology

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10 New Industrial Parks are providing Industrial REITs with much larger assets to purchase

11 Logistics is transforming the asset class and Distribution Centres are getting bigger! PILE IT HIGH SELL IT NOT SO CHEAP New M&S Distribution Centre is 900,000 sq ft and 25 m high Equivalent to 11 Wembley Sized Football Pitches Capable of processing 1 million products a day M&S will shift from 110 warehouses to just 4

12 The Industrial market- looking forward Stock availability still tight- a highly underinvested sector Rents have been rising over the past 2 years (+30%) Exciting new mega distributions centres are being built which carry high price tags Industrial land prices have been climbing leading to in introduction of new innovative multilevel Distribution centres, E-commerce is driving demand and supply Demand for new high quality industrial estates will transform the Industrial landscape Converting old assets to new industrial

13 Large multi level warehouses have arrived here This DHL warehouse, called Malaysia Integrated Logistics Centre (ILC), has a footprint of more than one million squ making it the largest warehouse in Malaysia, and will increase DHL Supply Chain s warehouse footprint in the count over 100 per cent.

14 Coming soon KUALA LUMPUR S FIRST INNER CITY MEGA DISTRIBUTION HUB & MALAYSIA S LARGEST INTEGRATED LOGISTICS BUILDING 1,200,000 sq. ft. of warehouse space.

15 Idea for 2017: Old shop-house to new industrial

16 Thank You