16/06/2025

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MONDAY | JUNE 16, 2025

KGW Group, China’s Mingkun in logistics integration tie-up

Merchantrade Asia eyes RM5b digital salary disbursements in 2025 PETALING JAYA: Merchantrade Asia Sdn Bhd’s digital payroll solution surpassed RM3.6 billion in salary disbursements to foreign worker e-wallet accounts in 2024, highlighting the company’s continued leadership in digitising and transforming payroll processes while advancing financial inclusion for underserved communities. Maintaining this momentum, Merchantrade Asia is aiming to achieve an ambitious payroll volume target of RM5 billion by the end of 2025. Founder and managing director Ramasamy K Veeran said the RM3.6 billion disbursed in 2024 not only demonstrates the impact of the company’s solution but also reflects a clear shift among Malaysian employers towards digital wage solutions that enhance productivity, transparency and employee well-being. “We are focused on building on this growth to reach RM5 billion in 2025 by deepening our partnerships, strengthening our onboarding capabilities, and conti nuously innovating to meet employer and worker needs,“ he said in a statement. The company has positioned itself as a trusted enabler of digital wage disbursement solutions for Malaysian businesses, from large corporations to SMEs across sectors including plantation, manufacturing, construction and services. More than 40 public-listed companies now rely on the solution for secure, efficient, and transparent salary pay ments to their migrant workforce. Merchantrade Asia’s digital payroll offering was strengthened following its recognition as an approved issuer of a designated payment instrument under the Employment Order 2024 by the Ministry of Human Resources. Designed for convenience and scale, Merchantrade Asia’s digital payroll system includes mass onboarding at the employer’s premises, an easy-to-use portal, training, and access to 97 branches and 450 agent locations nationwide that act as service centres. With comprehensive support for employers from onboarding to after sales service, the solution is a more sought-after choice compared to traditional banks, particularly for the foreign worker segment. For foreign workers, salaries are credited directly into the Merchantrade Money e-wallet, enabling access to a suite of digital financial services. This includes international remittances, mobile top-ups, micro-insurance, bill payments, and retail and online pay ments with the Visa prepaid card. One of the key features of Merchan-trade Asia’s payroll service is its capability to facilitate Social Security Organization payments directly into Merchantrade Money accounts. This integration sim-plifies the claims process for eligible foreign workers and supports employers in managing their social protection obligations.

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

“These manufacturers require a comprehensive solution. That is why we are investing in people, facilities, and integrated logistics. We want to be their partner in Malaysia,” he said. Looking ahead, KGW plans to expand air freight services and SME-focused e-commerce fulfil ment via US-based AGS. “AGS does a bit of traditional logistics like air and ocean freight, but most of their core business has shifted to e-commerce. Their last mile arm, SpeedX, is quite established in the US. They cover about 60–70% of the country compared to USPS or FedEx Ground, which is substantial.” Wong said the partnership will help KGW replicate that reach for exporters across Malaysia, Vietnam, Thailand, and Indonesia. “AGS helps the group scale its US operations faster. Before setting up KGW Global, the company was already doing more trucking, ware housing, and customs clearance in the US than in Malaysia. “Our service isn’t just about shipping – once it lands in the US, we also handle inland delivery. It’s a huge country, and we manage everything from oversized and flatbed trucking to storage and clearance. “AGS’s presence strengthens us. They’re now part of our group, and that makes things move more smoothly,” he said.

o Companies establish joint venture to capitalise on manufacturing shift into Malaysia as US tariffs impact Chinese exports

SHAH ALAM: Malaysia’s largest trans-Pacific logistics provider, KGW Group Bhd, is doubling down on the US market through a joint venture with China’s Mingkun International Logistics Ltd. This move aims to capitalise on the manufacturing shift into Malaysia as US tariffs impact Chinese exports. CEO Roger Wong ( pic ) said the joint venture entity is already set up, with KGW as a minority partner helping Mingkun expand its local presence as a logistics integrator. “The Mingkun and KGW Global joint venture is a response to the ongoing trade war. We are seeing more Chinese businesses move into Malaysia to avoid high tariffs,” Wong told SunBiz in an exclusive interview recently. “We want to help these factories set up here instead of going to Vietnam or Indonesia. Many of them need a one-stop logistics solution, and we can be that partner,” he said. Wong said KGW Global and Mingkun aim to provide a compre hensive logistics solution as an integrator, especially for Chinese manufacturers expanding into Malaysia. “Previously, KGW focused mostly on shipping because clients didn’t need services like trucking or customs handling. But with these

Wong said the partnership is acce lerating KGW’s push into US e-commerce. “AGS operates a last-mile network in the US called SpeedX, handling deliveries for Shein and TikTok. They are embedding teams in our office. We are now scaling our US e-commerce product

Chinese factories coming in, they want a one-stop solution be cause they are not very familiar with the local market,” he said. At the same time, Wong said, KGW is planning to grow its presence in Thailand, Indonesia, and Viet nam to help busi nesses in those count ries ship goods to the US.

with them,” he added. About 60% of KGW’s revenue is tied to the US. Wong said demand is surging as clients front-load shipments during the 90-day pause in the Trump tariffs, though not as high as during the pandemic. “Container freight used to cost US$2,000. Now it can hit US$8,000 (RM34,000). Some shipments cost as much as the products inside. We have to warn our clients,” he said. Wong believes Malaysia’s low tariffs and new Investment, Trade and Industry Ministry rules requiring verified certificates of origin for US-bound cargo will increase the country’s appeal to China-based exporters.

“We are expanding there to strengthen our US-bound logistics network. Thailand, Indonesia, and Vietnam are the three key markets we’re targeting next – not so much to grow locally in those markets, but to move cargo from those countries into the US. That includes both traditional B2B shipments and e commerce B2C,” he said. KGW is Malaysia’s largest logistics provider in trans-Pacific trade, offering ocean and air freight, freight forwarding and warehousing services. In February, US-based Acce lerated Global Solutions Inc (AGS) acquired a 15% stake in KGW.

KJTS, Shenzhen Envicool to jointly pursue data centre cooling deals in Asean PETALING JAYA: KJTS Group Bhd, through indirect subsidiary Green AI Sdn Bhd, has signed a memorandum of understanding (MoU) with China based Shenzhen Envicool Tech nology Co Ltd, one of the world’s leading providers of advanced cooling technologies, to jointly pursue data centre infrastructure projects in Asean with a focus on innovative, energy-efficient cooling solutions. the data centre industry. “By leveraging our project delivery capabilities and Shenzhen Envicool’s global presence and track record as the leading data centre cooling provider in China to enhance the market positioning of the partnership, we are confident in our ability to create long-term value for clients while contributing to broader environmental goals,” KJTS noted.

Green AI, established under a wholly owned subsidiary of KJTS, namely KJ Technical Services Sdn Bhd, is KJTS’s innovation arm for sustainable cooling energy manage ment in mission-critical environ ments such as data centres. Through this partnership, Green AI will leverage KJTS’s expertise in build-operate-transfer and retrofit operate-transfer models to lead engineering, construction, and ongoing operations of cooling plants. Shenzhen Envicool, listed on the Shenzhen Stock Exchange, is a globally recognised leader in precise temperature control solutions. The

They will collaborate to deliver cooling infrastructure solutions with Green AI as project leader and asset owner while Shenzhen Envicool will supply its cooling technologies, system design guidance, technical support and training. The two companies aim to introduce performance-based models that guarantee energy efficiency and savings for clients. KJTS in a statement said the collaboration with Shenzhen Envi cool represents a major step forward in the company’s and its subsidiaries’ regional strategy to deliver intel ligent, low-carbon cooling solutions that meet the growing demands of

From left: Envicool Malaysia deputy general manager Yu Zhengwei, Shenzhen Envicool director, channel sales Yu Dengke, Green AI director Ng Kah Choong, and KJTS Group managing director Lee Kok Choon and executive director Sheldon Wee.

with local execution expertise to deliver solutions that are not only energy-efficient but also aligned with long-term climate goals. This partnership sets the stage for a transformative approach to data centre infrastructure in Southeast Asia, where demand for scalable, sustainable cooling solutions con tinues to grow rapidly, it said.

company has delivered over four million sets of high-efficiency cooling systems worldwide and has helped avert well over 20 million tons of carbon emissions. Shenzhen Envicool, in the same statement, said as global demand for high-performance data centres grows, the company’s partnership enables it to combine technology