Under the Radar: FedEx’s Asia Pacific President sheds light on growth in Asia and its shifting of regional HQ from Hong Kong to Singapore

Money Matters with Hongbin Jeong and Chua Tian Tian

From making 186 deliveries on day one to about 17 million today.

That’s a reflection of the growth of logistics giant FedEx through the years since it was first founded half a century ago in 1971.

At that point in time, FedEx was known as the Federal Express Corporation, with the word “federal” suggesting an interest in nationwide economic activity in the US.

Fun fact – it was meant to resonate with the US Federal Reserve Bank, which is a potential customer for the logistics player.

You might have recalled us talking to FedEx over a year ago on the show, and today we’re going to get an update as to how things are going for them right now.

Financially, the firm had in December 2024 reported second quarter earnings per share of US$4.05 in line with expectations. Revenue though, came in at US$22 billion for the quarter, slightly lower than the US$22.17 billion expected.

The firm’s CEO Raj Subramaniam said the results come despite several headwinds, including continued weak US domestic demand and the expiration of its US Postal Service contract. He said the showing demonstrates that the firm’s efforts to transform its operations have been working. But what were the key drivers of growth bolstering the numbers, and how far did Asia Pacific contribute to the firm’s top line numbers?

Speaking of Asia Pacific, the firm also said in 2024 that it will consolidate some Asia-Pacific, Middle East and Africa functions in Singapore to connect all of its operations in the region with greater speed and agility. But what should we know about the move?

On Under the Radar, The Evening Runway’s finance presenter Chua Tian Tian posed these questions to Kawal Preet, President, Asia Pacific at FedEx.

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