FedEx To Move Asia Pacific HQ To Singapore
SINGAPORE – FedEx intends to relocate its Asia Pacific (APAC) regional headquarters from Hong Kong to Singapore, further impacting the Chinese territory’s appeal as an international business hub, reported The Standard on Friday evening (5 May, SGT).
The global shipper stated in an email that it plans to consolidate some APAC as well as Middle East and Africa headquarters functions in Singapore “to connect all of our operations in this region with greater speed and agility”.
While FedEx said it plans to keep a “significant” presence in Hong Kong, including retaining some leadership roles there, it intends to transfer some of its executives based in the city, including Regional President Kawal Preet, to Singapore, said a source.
The move to Singapore by the shipper’s Hong Kong-based executive will occur in September 2023.
Nonetheless, FedEx will still retain its office in Hong Kong along with most local employees. However, it is mulling to relocate some non-essential roles to Malaysia or India to reduce expenses, revealed another source.
The company disclosed that less than 15 percent of its staff in Hong Kong will relocate to Singapore, while its office in the Chinese territory will “continue to provide vital support” for the region.
Across Asia Pacific, FedEx has 35,000 employees and it provides services in over 100 countries.
Although Hong Kong remains as the busiest air cargo port in the world, it has lost regional relevance with the ascension of nearby mainland Chinese logistics hubs, such as Shenzhen and Guangzhou, where FedEx has established an operations centre.
Meanwhile, The Business Times reported on Sunday evening (7 May) market watchers think that more high-net-worth individuals (HNWIs) could shift their focus on commercial properties, including strata office space, after the authorities doubled the Additional Buyer’s Stamp Duty (ABSD) rate for residential property for foreign buyers to 60 percent.
In fact, CBRE’s Research Head for Southeast Asia Tricia Song shared that interest in strata-titled office units in Singapore has been surging over the past few months.
“We have seen renewed interest in strata offices, since the sharp interest-rate hikes reduced institutional investment activities in H2 2022, while cash-flush individuals or families are still able to pick up high-quality strata office units.”
Notable deals during the first quarter of the year include five office floors at upcoming freehold office development Solitaire on Cecil acquired by family offices and HNWIs at prices ranging between S$3,865 psf and S$4,325 psft, added JLL’s Research Head Tay Huey Ying.