Local knowledge and contacts are key to success in Southeast Asia for Toll Group

Since its inception, Toll Group has taken steady steps in pursuit of its mission to keep the world moving. Twenty-five years ago, this pursuit led the company to set its gaze on Southeast Asia, searching for a way to test the waters.

Alan Beacham, Managing Director of Toll Group, explains: ‘Our first foray into Asia was through an acquisition of the Finemores business in Australia in the early 2000s. They had activities in Asia and that gave us an ability to dip our toe into the water.’

Further acquisitions in the early 2000s gave Toll Group a solid base in Singapore and interests right across Asia.

Southeast Asia a major contributor to growth

The significance of Southeast Asia to Toll Group’s success became clear.

‘All forward projections around economic growth and regional development are very positive towards Southeast Asia,’ says Beacham. ‘From a supply chain practicality, we import more than we export from Australia, and our main import partner is Asia.’

A post-COVID world also learnt some lessons about supply-chain resiliency. ‘Many countries are increasingly interested in diversifying sources since the pandemic taught us what happens when there is an over-reliance on one country,’ adds Beacham.

Toll Group has made significant investments in infrastructure and innovation in the region.

‘We expect to invest somewhere in the order of A$400 million over the next 3 years throughout the Pan-Asia region, opening new warehouses, offices and facilities,’ says Beacham.

In December 2024, Toll Group announced it was investing A$100 million in healthcare services across the Asia Pacific. The company is upgrading its flagship, multimillion-dollar facility, Toll City, located in Tuas, Singapore. It will also construct a new site in Port Klang, Malaysia.

Beacham praises the support Toll Group has received from Austrade. ‘I’ve seen expansiveness and creativity in their thinking, with many Austrade partners who are engaged and energised in trying to help create solutions,’ he says. ‘In recent visits to Thailand and India, we've been able to get the right audiences and the right kind of conversational dialogue around what we’re trying to achieve.’

Singapore the centre of digital innovation

Toll Group has an innovation centre in Singapore, which brings together business, startups and academia to foster collaboration and innovation in supply chains.

‘We chose to open our innovation centre in Singapore to be close to our head office and to be in the middle of the ecosystem for technological and digital innovation,’ says Beacham.

Beacham says leading Toll Group’s Southeast Asia strategy in-person from Singapore is a crucial source of business insight.

‘I have learned more in 2 years living and working and holidaying in Southeast Asia than I learned in the 20 years of doing business from Australia,’ says Beacham. ‘From talking to taxi drivers to reading local papers, being immersed in the environment means you pick up things that you wouldn’t pick up remotely.’ 

Toll Group has a significant presence in Southeast Asia, including an innovation centre in Singapore.

Capitalising on Southeast Asia’s economic growth

Australia stands to gain significantly from a robust trade and investment relationship with Asia, particularly through diversification and resilience in its trading sources.

A strong Southeast Asian focus means Australia can capitalise on the region’s economic growth and supply chain shifts. The relationship between Singapore and Australia, especially in agriculture and the green economy, has been particularly beneficial. Similar expansions could yield significant advantages for the Australian economy.

For businesses considering expansion into Southeast Asia, Beacham emphasises the importance of local connections and a solid logistics partner. ‘You need to connect with Austrade in the country you want to do business with. The local contacts will be invaluable.’

Toll Group has several exciting projects in the pipeline. ‘We recently opened our latest warehouse to support growing customer demand in Thailand, which we’re very excited about,’ says Beacham.

Toll Group’s strategic expansion into Southeast Asia underscores the region’s significance in global trade and logistics. With a strong focus on cultural immersion, local partnerships, and innovative investments, Toll Group is well positioned to continue its growth and support for businesses moving the world.

‘For us, it’s about being part of growth and tapping into where growth is going to take place,’ says Beacham.