FedEx contributes $1.7 billion to Asia-Pacific economy

October 30, 2024 | 12:00am

MANILA, Philippines — Courier giant FedEx is bringing in at least $1.7 billion in output to the Asia-Pacific economy this year, and in the Philippines that contribution boosts mostly micro, small and medium enterprises (MSMEs).

Based on FedEx’s 2024 Global Economic Impact Report, FedEx accounts for around 0.2 percent of net economic output in transportation, storage and communications of Asia-Pacific for the year.

FedEx said it is chipping in an indirect economic output of $1.7 billion to the region, of which $540 million goes to manufacturing and $500 million benefits transportation.

In the Philippines, FedEx is keeping its focus on serving the MSME market, as it does elsewhere in the world. In 2023, the courier said 90 percent of its suppliers were classified as MSMEs, and FedEx worked with them on multiple projects, supporting 400,000 jobs.

One of the efforts FedEx is doing globally is teaming up with brick-and-mortar companies and e-commerce platforms to extend the reach of its logistics network. Together, they put up pick-up and drop-off points to facilitate the sale of MSMEs.

FedEx presently offers its courier services in 1,100 outlets of 2GO, Alfamart and SM Business Centers, easing access for MSMEs when shipping their products to customers.

FedEx works with end-to-end courier Airspeed in managing 1,200 self-collection lockers around Metro Manila, placed strategically in stations of the Light Rail Transit Line 1.

FedEx also issued $69,000 in grants to four MSMEs in the Philippines, Indonesia, Malaysia and Singapore to support their business growth through innovation.

In July, FedEx announced it is doubling the size of its facility at the Clark International Airport. It made the commitment to expand its Philippine footprint on confidence that the country would be able to sustain its logistics uptrend.

The courier also threw its support behind the government’s push to make Clark an aviation hub. FedEx believes Clark has the capacity to process the shipping volume of importers and exporters alike, saying its expansion shows its optimism in the domestic market.

With the expansion, FedEx hopes to bridge its domestic clients with supply chains abroad.

In 2021, FedEx opened its $30-million facility in Clark to serve Philippine logistics, which, at that time, was lifted by the e-commerce boom during the pandemic.