The logistics sector across the Asia‑Pacific region is showing tempered near‑term sentiment amid economic and trade uncertainties, even as companies remain confident in their long‑term expansion plans, according to a recent industry survey of logistics occupiers.
The 2025 logistics occupier survey revealed that while short‑term business confidence has weakened, with fewer firms expecting improved performance in the next two years compared to previous years, longer‑term growth plans remain robust. A significant majority of respondents are positioning for bigger logistics footprints over the medium to long term, with plans to expand real estate holdings and support supply chain strategies that span the next three to five years.
The report highlighted that logistics occupiers are increasingly looking beyond traditional markets, focusing on emerging hubs across the region as part of broader supply chain diversification strategies. Countries in South Asia and the Middle East have drawn particular interest from logistics firms seeking to spread risk and capitalise on rising consumption and urbanisation trends.
Sector challenges persist. Uncertainty around trade policy and tariff shifts, particularly in relation to key export markets, has pressured near‑term planning, and some firms are considering mitigation strategies such as lease renegotiations or postponing expansion to manage risk.
Despite this, major logistics hubs like Singapore continue to attract interest due to strategic positioning, strong connectivity and stable operating environments, providing a foundation for longer‑term demand growth even amid near‑term headwinds.
Logistics leaders say the mixed outlook underscores the importance of flexible network planning and resilient supply chains to balance short‑term vagaries with long‑term expansion opportunities in the evolving global trade landscape.
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