Kavan Mukhtyar, director of Transportation of Frost & Sullivan, a global growth consulting company, says the demand for logistics services in Asean has been increasing because of companies' need to cut costs, focus on core competencies and ensure timely delivery for customers in today's globalised economy, according to a media release.

In the Asean region where there is a wide geographic dispersal of markets and a high dependency on external trade, logistics play a crucial role in sustaining economic growth.

"Logistics requirements of businesses have become more onerous, particularly in the manufacturing industry, which has progressed to become highly integrated in global supply chains. This transformation has enabled the significant growth of logistics service providers in Southeast Asia," Mukhtyar says.

He adds that factors such as liberal trade opportunities, strong economic growth, geographical location and improved supply chain efficiency will drive the growth of Asean logistics market.

Mukhtyar says that improved logistics function can considerably increase the competitiveness of companies, especially in the intense time-based competitive industry such as electronic or electrical products.

"The competitive market has driven most manufacturers in Southeast Asia to explore ways to enhance their competitiveness, especially in terms of lowering their logistics cost," he adds.

He also says the Asean free trade agreement has helped considerably to reduce tariffs and make trade in the region more liberal.

Free flow of services is in the agenda for Asean to be achieved by as early as 2015 while free movement of skilled labour would be made possible by 2008 through Mutual Recognition Arrangements for major professional services.

"These efforts reinforce the fact that trading in Asean is simpler than before and are likely to increase trade volumes year on year, which indicates a clear growth opportunity for the logistics industry in the region," Mukhtyar says.

Frost & Sullivan will be hosting a panel discussion on the trends and challenges of the Asean logistics industry at its 2006 ASEAN 4 Logistics Awards 'The Voice of the Customer' on Thursday, July 20, 2006 in Singapore.

Mukhtyar says the Awards is aimed at identifying and honouring the best logistics service providers in five major sectors in Indonesia, Malaysia, Singapore and Thailand based on a 'Voice of Customer' research conducted by Frost & Sullivan. Sectors included are automotive, pharmaceutical, retail, fast moving consumer goods and IT/electronics.

A total of 21 awards will be presented in two categories: Category A Sector awards for each country (20) 5 sectors X 4 countries. Category B Overall Asean 4 Best Logistics Service Provider Award (1).

Mukhtyar says the award recipients will be identified based on an in-depth research conducted by Frost & Sullivan within five end-user industries.

"The results are reflective of an interaction with logistics managers and decision makers for their opinions and ratings of the various logistics service providers," he adds.

The event is supported by the Singapore's Economic Development Board and The Logistics Institute Asia Pacific. Media partners for the event include Asia News Network, Malaysian Business, US-based Logistics Management, Global Logistics & Supply Chain Strategies, Logistics Thailand and Netremedia Pte Ltd.

For more information on the awards, people concerned are requested to visit http://www.frost.com/voc.