SCG International bets on regional logistics to boost ASEAN trade efficiency

SCG International is expanding its operational footprint across Southeast Asia by linking regional supply chains with localized logistics services. The company, which manages materials, chemicals, and packaging businesses, aims to improve efficiency in a market where economic conditions vary widely. Its strategy focuses on three specific areas: regional integration, low-carbon innovation, and collaboration with local partners.

The economic gap within the Association of Southeast Asian Nations creates a complex environment for multinational firms. Data from the World Bank indicates that Singapore’s GDP per capita was approximately 36 times higher than Cambodia’s in 2024. This disparity means that a single delivery model cannot serve all markets effectively. SCG addresses this through its logistics venture, SCGJWD, which uses shared infrastructure while adapting services to local requirements.

Thammasak Sethaudom, president and CEO of SCG, stated that the company seeks to optimize capabilities across the region while maintaining deep connections to local markets. He described SCGJWD as a key component for building competitiveness in the next phase of growth. The approach allows goods to move more efficiently across borders without assuming that uniform standards apply everywhere.

In Indonesia, the company operates the SCG Barito joint venture. This operation connects road transport with inter-island shipping to address the country's archipelagic geography. In Malaysia, SCG formed a partnership with logistics group Swift Haulage to create Swift Cold Chain. This facility, located in Shah Alam, provides 10,000 pallets of cold storage to meet rising demand for temperature-controlled logistics.

Environmental regulations are also driving operational changes for ASEAN exporters. The European Union’s Carbon Border Adjustment Mechanism, known as CBAM, reached full effect in 2026. This policy imposes carbon requirements on imports of cement, fertilizer, steel, hydrogen, iron, and aluminium. These rules create a commercial necessity for companies to adjust production methods and energy use to remain viable in European markets.

SCG is developing lower-carbon products to meet these standards. In Vietnam, its subsidiary PRIME GROUP installed a biomass gasifier at the Pho Yen tile factory. This equipment replaces a portion of the coal previously used for thermal energy with biomass. Sethaudon noted that the transition to a low-carbon economy involves creating new solutions and long-term value, not just reducing emissions.

The company relies on collaboration with governments and communities to scale these changes. In Thailand, SCG supports the Saraburi Sandbox initiative. This project uses a Public-Private-People Partnership model to combine industrial expertise with public policy for local decarbonization. In Sukabumi, Indonesia, the company is working with local authorities on a refuse-derived fuel project. This initiative explores using processed municipal waste as an alternative to conventional fuel in cement production.

These local projects illustrate how regional companies can address manufacturing challenges through joint efforts. SCG International continues to integrate its regional scale with local market knowledge. The company aims to position itself to shape the next phase of growth in the interconnected ASEAN economy.