Penang sees massive forwarding slump

PENANG’S freight-forwarding business has seen one of the largest drops in demand in Asia Pacific.

According to the Penang Freight Forwarders Association (PAFFA) Penang’s inbound segment dropped by 52 per cent in December to 2,838 tonnes from 5,850 a year earlier. The export segment declined by 32 per cent in December to 4,971 tonnes from 7,505 previously.

PAFFA’s vice-president of airfreight P. Kalimuthu said that between 60 per cent and 70 per cent of the goods exported from Penang via air are electronics and semi-conductor products. “The rest are products from the garment industry and other manufacturing concerns,” he said. “This is why when the electronics and semiconductor industry overseas enters recession, we will be badly affected as well.”

He called on the federal government, Kuala Lumpur Airport and Malaysia’s main power company to lower fuel, terminal and power charges for PAFFA members.