KUALA LUMPUR (July 18): Sunway Bhd is forming a joint venture (JV) with a Singapore-based company to invest in the logistics business, tapping into the growing e-commerce industry in Malaysia.

Sunway said its wholly-owned subsidiary Sunway Holdings Sdn Bhd and 70%-owned subsidiary Sunway IBS Sdn Bhd have entered into an agreement with PopBox Asia Pte Ltd to set up the JV.

The JV company will be used to operate automated parcel lockers, and set up parcel collection and return points at convenient locations nationwide, it said in a filing to Bursa Malaysia today.

Sunway said this is in view of the growing e-commerce industry in Malaysia, whereby it is projected there will be a need for convenient parcel collection and returns.

"The proposed JV will be able to provide locations nationwide to facilitate automated parcel collection and returns between consumers and merchants," said Sunway.

Sunway, however, noted that the utilisation rate of lockers is one of the business' risk factor as it is dependent on the location of lockers.

"However, the risk will be mitigated as the lockers will be located at strategic locations at high traffic areas and Sunway, with its track records, will take the necessary actions to mitigate the identified risk," it said.

PopBox is a company incorporated in Singapore and has a paid-up capital of US$2.4 million (RM9.55 million). It is principally engaged in the business of providing logistics and locker services.

Sunway's share price closed unchanged at RM2.98 today, giving it a market capitalisation of RM6 billion.

Source : http://www.theedgemarkets.com/my/article/sunway-forms-jv-invest-logistics