FedEx fuels Asia-Pacific economy with USD $1.7 billion boost

FedEx has released its annual economic impact report, highlighting the company's significant contribution to the Asia-Pacific region's economy during its 2024 fiscal year.

The study, conducted in consultation with Dun & Bradstreet, estimates that FedEx contributed USD $1.7 billion indirectly to the Asia-Pacific region's economy in FY 2024. It also states that the company played a role in enhancing operational efficiency, flexibility, and intelligence across this vast and economically diverse region.

Raj Subramaniam, President and CEO of FedEx Corporation, commented on the company's vision and efforts, saying, "At FedEx, we have a vision to make supply chains smarter for everyone by leveraging advanced data and technology to better serve our customers and their customers, thereby extending our reach and impact. The 'FedEx Effect' represents our relentless commitment to excellence, economic growth, and the communities where we live and work."

The report also highlighted FedEx's global economic contributions, stating that the company had a direct impact of over USD $85 billion on the global economy in FY 2024. This contribution equals approximately 0.1% of the world's total net economic output, showcasing the scale of FedEx's global network, which serves more than 220 countries and territories. FedEx employs over 500,000 people within more than 5,000 facilities, handling an average of 16 million packages daily.

The Asia-Pacific (APAC) region, with its expanding economic opportunities, plays a critical role in FedEx's operations. The report states that FedEx directly contributed an estimated 0.2% to the net economic output in the APAC Transportation, Storage, and Communications sector. The company's operations across 43 APAC countries and territories help to facilitate regional commerce.

Kawal Preet, President of Asia Pacific, FedEx, emphasized the company's commitment to the region by stating, "We recognize APAC's pivotal role and contribution to the global economy and are committed to driving its growth.

"By investing strategically in infrastructure and enhancing connectivity within the region and globally, we are empowering businesses to unlock new growth opportunities while positioning APAC as a hub for international investment. We remain steadfast in expanding access to global trade, fueling economic growth, and creating long-term sustainable value for communities, customers, and businesses across the region."

In APAC, FedEx has been active in improving trade connectivity, facilitating greater market access, and enhancing operational capacity. This includes adding four weekly flights from Ho Chi Minh City to Guangzhou, doubling sorting capacity at its Shenzhen International Gateway, and establishing new headquarters in Singapore. FedEx also plans to expand its transshipment centre at Taiwan's Taoyuan International Airport.

In efforts towards sustainability, FedEx has invested in renewable energy for its facilities, electrification of its fleet, and carbon sequestration research. The company has also introduced commercial electric tricycles in Taiwan and successfully completed a zero-emission delivery from Malaysia to Singapore.

FedEx's supplier spending in 2023 significantly supported small and medium-sized businesses (SAMs) in APAC, with 68% directed towards them. Additionally, the company supported SAMs through its Small Business Grant Program, awarding a total prize pool of USD $69,000 to companies in Indonesia, Malaysia, the Philippines, and Singapore. The main prize recipient was Lucence, a Singapore-based oncology start-up.

The company has also actively contributed to charitable causes through FedEx Cares. In FY 2024, over USD $55 million was directed to partnerships with NGOs and nonprofits. FedEx has supported educational initiatives, provided essential resources across the region, and engaged in various volunteering activities, bolstering community spirit and support.