The SME also announced it is venturing beyond freight and transportation into serving the pharmaceutical sector.

Mr Philip Yeo, Chairman of Spring Singapore, who was the guest of honour at the opening of the $7.5 million centre, highlighted the challenges for logistics SMEs in the current economic climate and urged them to 'continue to build up core and differentiated competencies to tap into spot opportunities and emerge stronger when the economy recovers'.

Air Market chief executive Nick Soon, who is upbeat about the expansion despite the dismal economic conditions, said: 'In every crisis there will be opportunities.'

'Strategising is important as a whole for the company. If you can make it through the next nine to 12 months, you should be safe.'

The company expects $30 million revenue from its expanded warehousing and distribution operations by end of the year.

�The 80,000 sq ft warehouse will serve as a regional distribution centre targeted at international markets, and will be used as a base for products destined for the Asian market and also for Asian exporters.

Air Market Expess has also landed a deal with Duty Free Air and Ship Supply, an international inflight duty free operator for major airlines. The company plans to invest more in new technologies like RFID (radio frequency identification) for better inventory management and other warehouse operations.