FedEx Plans to Move Asia Headquarters, Executives to Singapore From Hong Kong
HOUSTON, TEXAS - DECEMBER 21: FedEx shipping boxes at a FedEx facility on December 21, 2022 in Houston, Texas. FedEx's sales and profits fell last quarter as company shares brought in 4.5% in premarket trading following its quarterly earnings. (Photo by Brandon Bell/Getty Images)
© Photographer: Brandon Bell/Getty Images
FedEx Corp. is planning on moving its Asia-Pacific regional headquarters to Singapore from Hong Kong — another blow to the city’s image as an international business hub.
In an emailed statement, FedEx said it will consolidate some Asia Pacific, Middle East and Africa (AMEA) headquarters functions in Singapore “to connect all of our operations in this region with greater speed and agility.” The company said it will retain a “significant” presence and leadership roles in Hong Kong. The courier has 35,000 workers in the region and provides service to more than 100 countries, FedEx said.
The Memphis, Tennessee-based courier plans to relocate some of its Hong Kong-based executives, including regional president Kawal Preet, to Singapore, according to a person who declined to be identified because the details are private. FedEx’s Hong Kong staff were told that FedEx’s management team will move in September, the person added.
The US company will still keep an office in Hong Kong along with most Hong Kong business-related staff, and it’s also considering moving some non-essential roles to Malaysia or India to cut costs, one person said. Fewer than 15% of the positions in Hong Kong will move to Singapore, FedEx said. The office will “continue to provide vital support” for the region, according to the company. The move may fuel concern that multinational companies’ confidence in Hong Kong is waning, particularly after years of political turmoil and Covid restrictions.
Hong Kong was at the center of the US-China trade disputes in 2019 as Beijing’s tightening grip over the financial hub — in response to months of social unrest — triggered sanctions from Washington. The city’s fortunes fell further during the pandemic, when tough travel curbs drove capital, companies and workers to other cities such as Singapore. Read More…
