UPDATE

Continuous MITI/MIDA Engagements Accelerated French Sports Retail Giant's Successful Foray to Malaysia

Continuous MITI/MIDA Engagements Accelerated French Sports Retail Giant's Successful Foray to Malaysia

Kuala Lumpur, 23 February 2017 – “Decathlon is certainly one of the many success stories of companies that have found Malaysia a vibrant place to do business. I am proud that our efforts and engagements with the company have come to fruition. In fact, I first met with Mr Dong Meng, Chief Executive Officer of Decathlon Malaysia, during my trade and investment mission to Paris in May 2015. Within the same month, MIDA granted the approval for the company to set up a Representative Office in Malaysia,” said YB Dato' Sri Mustapa Mohamed, Minister of MITI during his visit to Decathlon’s premise at Bandar Sri Damansara today.

“Last year in November, I met Mr Dong Meng again in Paris, during the Roundtable Meeting with French Captains of Industry. I was very pleased to hear the progress the company has made, here. Just within a short span of one year since its entry as a Representative Office, the company has now opened its one-stop sport retail entertainment centre, the first-of-its-kind in Malaysia in May 2016,” said the Minister.

Decathlon Malaysia’s sales have tripled in the first nine months of operation, exceeding its expectations. Its current premise has a staff strength of 90 employees. This French-based world's largest sporting goodsretailer, is further enlarging its current premise as well as expanding in other areas in the Klang Valley, namely in Subang Jaya and Shah Alam in 2017 and 2018 respectively. The new premises are expected to recruit at least 50 Malaysian employees per site and will open up numerous internship opportunities for the younger generation.

“MITI and MIDA are now actively discussing with Decathlon on their plans to make Malaysia as its regional distribution centre to better serve their growing local and regional customers, particularly those in Thailand, Vietnam, Indonesia, Singapore and Philippines. This underscores the attractiveness of Malaysia as an important business node with effective and efficient transport and logistics system,” added Dato’ Sri Mustapa.

Decathlon’s new construction of the warehouse for its regional distribution hub will involve an investment of approximately RM50 million. This will contribute to an additional 150 new job opportunities on supply chain activities such as warehouse management, procurement and distribution, retail specialists and logistics management. This investment will provide more businesses to our local logistic service providers, including activities like transportation of goods and freight-forwarding services. The operations of this distribution hub will also increase the usage of local ports, particularly the Port of Tanjung Pelepas as 100% of the company’s goods will be shipped in and out from Malaysia.

From 2012 to September 2016, Malaysia has approved a total of 70 services projects with French participation. These projects are worth a total of RM2.74 billion and provided 4,080 job opportunities. The Minister encouraged more foreign investors to follow the foot-steps of companies like Decathlon by taking the first step to establish a Representative Office (RE) to explore the viability of doing business in Malaysia. From 2012 until September 2016, MIDA has approved 290 REs seeking to assess the viability of Malaysia as the place to conduct business. According to the French Embassy, more than 270 French companies have set up their operations in Malaysia. Notable French companies include LaFarge, Safran Group, Airbus, ST Microelectronic, Technip, FAI Asia Pacific, Sanofi Pasteur and Total E&P Malaysia.

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For more information, please contact:

Encik Ahmad Tajudin Omar

Director

Domestic Investment Division, MIDA

Tel.: 03-2267 3627

Email:[email protected]

Puan Roeslina Abbas

Director

Regional Establishment and Supply Chain Management Division, MIDA

Tel.: 03-2267 6676

Email: [email protected]

Posted on : 23 February 2017
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Last Updated : Wednesday 23rd May 2018