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HO LAO in the Past and Present

Back to 1980s, with the influence of countries and regions like“The Four Asian Dragons” and "Four Asian Tigers” (Thailand, Philippines, Malaysia, Indonesia ), the overall economic situation was promising. It attracted lots of investments and enterprises and also provided more business opportunities.

With the rapid development of the Southeast Asia economy, Houng Fuh was founded in 1984 and planned a long-term development strategy of setting up Malaysia branch. In 1989, Ho Lao Engineering SDN.BHD was formally founded. Food is the first necessity. The newly built Ho Lao has found the great potential in food and beverage industry. “At that time, demand in food and beverage industry was huge in the Southeast Asia market. Ho Lao mainly provided services for canned food and beverage industry and carried out lots of projects.” Lin Linnian, General Manager of Ho Lao Malaysia recalled. “Ho Lao provided customized automatic logistics equipment and services in food conveying, processing, sorting, packing and storage at that time. It served global well-known brand such as F&N, SONOCO, Kellogg’s.”

30 years later, the development of Chinese E-commerce drives the economic development of Southeast Asia, which has great potential. According to relevant data, the annual growth rate of E-commerce in Malaysia will be about 15% in the next five years, which is closely related to the domestic development of E-commerce in China. Under the catalysis of the epidemic, the governments of Southeast Asian countries strongly support the development of E-commerce, and the rapidly growing demand also brings great potential and opportunities, which also drives the development of the automated conveying and sorting market. Lin Linnian said that in Southeast Asia market, the demand is mainly concentrated in two categories in conveying and sorting: high-end equipment (capacity is as high as 20,000 piece/hour) and medium and low-end equipment (capacity is 1,000~3,000 piece/hour). The customers include local and cross-border E-commerce, logistics and express.

Where there is demand, there is competition. Competition is also fierce in conveying and sorting market in Southeast Asia. Lin Linnian pointed out that the overseas strategies of Chinese enterprises impel lots of logistics equipment enterprises to explore overseas market, which provides more choices for overseas customers and also brings much harsher competition. The competition strategies are also similar to that in Chinese local market.

“At present, Ho Lao mainly serves local E-commerce, express and logistics companies in conveying and sorting market in Southeast Asia. Compared with enterprises from China, these local enterprises have a larger development space," Lin Linnian revealed. The logistics market in Southeast Asia is in a rising dividend period, and its development favors the overall solution of warehousing. With the continuous expansion of market demand, the demand for storage of local enterprises, such as food and cold chain, is also rising. Local enterprises like Ho Lao can effectively meet customers' local service needs and provide one-stop logistics warehousing solutions. They have their own core warehousing capabilities.

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Ho Lao is a important branch of Houng Fuh to explore Southeast Asia regional market. With more than 30 years hardworking, Ho Lao has built strong connections, networks and completed many projects. Considering the Southeast Asia market demand and geographical characteristics, local enterprises have advantages in language, culture, personnel efficiency and teamwork in the pursuit of higher efficiency and better service experience. Ho Lao makes full use of self-advantages and builds a solid foundation in market exploration, project management, brand influence and market occupation,etc,. Therefore, the Malaysia company is the front line of project implementation for Houng Fuh’s overseas projects.

On the other hand, depending on the domestic development and accumulation of Houng Fuh in China, as well as Houng Fuh’s technical support and Malaysia overall social network source,Ho Lao forms its own advantages. It is one of the first enterprises to contact and implement these E-commerce projects. Meanwhile, Ho Lao cooperates with Chinese customers, integrators and foreign enterprises to implement projects successfully. Ho Lao has its separate technical team and after-sale service department to provide rapid services for customers. It forms a total-link professional operation mode from design, production to after-sale service. In project implementation, Ho Lao makes full efforts to provide best services with its rich experience.

Besides, Ho Lao always adheres to the value of customer first during these 30 years development to improve customers’ satisfaction and realize win-win situation. “We are really appreciate and rely on the trust of chairman Mr. Liu. Ho Lao employs Malaysia natives as management leaders. And we will always adhere to the corporate culture spirit of ingenuous manufacturing, innovation-driven and people oriented!” Lin Linnian said frankly. When talking about future, Mr. Lin pointed out that Chinese Belt and Road initiative has promoted Southeast Asia market to develop towards digitization these years. Automatic warehousing market has began to rise and will grow significantly in a short time, which is one of the main trend for the future Southeast Asia market. Chinese enterprises are still the main customers in conveying and sorting market, so they prefer to choose domestic suppliers in China. Local enterprises still need to further develop.

“In the future, Southeast Asia market will favor warehousing more than sorting in comparison. It is just in line with Ho Lao’s expectation to the general direction of market development. ” Lin Linnian concluded.