Freight Management Holdings Bhd, a leader in the provision of international multimodel freight services, is looking at potential acquisitions domestically and regionally.

Managing director, Chew Chong Keat said there are now ongoing talks for potential acquisitions in Malaysia.

'We are are keen on the South East Asian region. Acquistions within the region will be synergistic to our expansion strategies,' he said during a luncheon talk today.

According to Chew, Freight Managemet is targeting to increase revenue contribution from overseas.

'Currently, the overseas contribution is 20 per cent to overall group revenue,' he said.

Freight Management has an extensive network of independent overseas agents with over 500 personnel servicing a diverse range of customers and direct consolidation and trans-shipment services to over 40 ports.

The group which has established itself as a leading player in the logistics industry, has also more than 2,500 clients in diverse industries from multinationals to small and medium scale enterprises and industries.

Chew said the company has been profitable even through the extreme global economic downturn in the past two years, by leveraging on a business model which is not asset-heavy and keeps cost down to a minimum.

'We do not own ships and other assets. We work with shipping lines and airlines like the middleman,' he added.

In line with its expansion plans to add more capacity, he said the company is looking at increasing space for its warehouse in Port Klang and this would involve an investment of approximately between RM12 to RM14 million.

'The strong balance sheet position allows Freight Management to capitalise on growth opportunities,' he explained.

Freight Management has at present a low net debt position of RM11.7 million or net gearing of 0.12 times as of June 30 this year.

'We have also provided a strong record of dividend payout of about 30 per cent yearly,' Chew said. -- Bernama